Incorporating an I.K.E. (Private Capital Company) in Greece: Legal Insights and Strategic Benefits

In Greece’s evolving corporate landscape, the Ιδιωτική Κεφαλαιουχική Εταιρεία (IKE), also known as the Private Capital Company, has emerged as a modern, flexible, and entrepreneur-friendly legal structure. Since its introduction by Law 4072/2012, the IKE has become the preferred vehicle for startups, investors, and small-to-medium enterprises (SMEs) seeking a simplified and capital-efficient alternative to traditional legal forms such as the Anonymi Etaireia (A.E.) and the Eteria Periorismenis Efthynis (E.P.E.).

This article provides a comprehensive legal analysis of the IKE incorporation procedure, its regulatory framework, key advantages, and strategic suitability for both domestic and foreign stakeholders.

1. Legal Form and Types

An IKE can be formed as:

• A Single-Member IKE (Μονοπρόσωπη), or

• A Multi-Member IKE (Πολυπρόσωπη)

Both forms offer limited liability to partners, while allowing for significant operational and structural flexibility.

2. Foundational Steps and Legal Requirements

a. Articles of Association (Καταστατικό)

The incorporation may proceed through:

• A model statute via the One-Stop Service (Υπηρεσία Μίας Στάσης – GEMI), with no notarial deed required, or

• A customized Articles of Association (ex: for complex shareholder structures or investment agreements), which must be executed before a notary public.

b. Incorporation Procedure

The incorporation process involves:

1. Choice of Company Form (Single vs. Multi-member)

2. Preparation and submission of Articles of Association

3. Filing with the General Commercial Registry (GEMI)

4. Tax ID Number (ΑΦΜ) issuance and registration in the Business Registry

5. Opening of a company bank account

6. Activation with the Tax Office (Εφορία)

Duration: 1–3 business days (using the standard model statute) – subject to proper documentation and digital submission.

3. Key Legal and Strategic Benefits

• Minimum Capital Requirement: From as low as €1, as contributions may be in cash, in kind, or in services.

• Limited Liability: Partners are not liable beyond their contributions.

• Flexible Governance: The General Assembly and the Manager (Διαχειριστής) manage the company, with adaptable decision-making rules.

• Cross-border compatibility: Ideal for EU and third-country investors, including legal or natural persons.

• No requirement for auditor or board of directors (unless specific thresholds are exceeded).

4. Target Groups and Suitability

The IKE legal form is particularly suitable for:

• New entrepreneurs/startuppers

• Freelancers and professionals (consultants, engineers, IT specialists)

• Existing sole proprietorships transitioning to a corporate entity

• EU or non-EU individuals/legal persons pursuing investment or commercial activities in Greece

• Collaborative teams and project groups needing a lean corporate vehicle

5. Regulatory Framework and Compliance

IKEs are governed by:

• Law 4072/2012 (Articles 43–120)

• Law 4919/2022 on business registry and digital procedures

• Supplementary provisions from the Greek Civil and Commercial Code, tax legislation, and company law directives of the EU

Ongoing compliance includes:

• Annual financial statements

• Timely registry updates (GEMI)

• Maintenance of corporate books (General Assembly and Management minutes)

6. Legal Representation and Strategic Incorporation

At Tsamichas Law Firm, we provide end-to-end legal assistance for:

• Drafting bespoke Articles of Association

• Advising on shareholding and governance structures

• Registering with GEMI and the Tax Office

• Opening bank accounts and advising on AML/KYC

• Ensuring regulatory compliance post-incorporation

Our team ensures legal certainty, strategic foresight, and maximum efficiency in setting up your IKE—whether you are a foreign investor, an early-stage startup, or a professional seeking structural security.

Conclusion

The IKE structure combines efficiency, minimal bureaucracy, and legal robustness, making it an ideal choice for businesses entering or expanding within the Greek market. Whether you are launching a venture or restructuring your enterprise, an IKE offers the agility and protection needed in a modern European legal environment.