Form a Private Company (IKE) in Greece

The IKE (Ιδιωτική Κεφαλαιουχική Εταιρεία – Private Capital Company) was introduced in 2012 and has since become the most widely used corporate form in Greece. It was designed from scratch to be simpler, cheaper, and more flexible than the older structures it effectively replaced for most purposes.

The fundamentals: an IKE is a private limited liability company with its own legal personality, separate from its shareholders (called “partners” under Greek law). Your personal assets are protected – liability is limited to what you’ve contributed to the company. It can be set up by a single person or by multiple partners, with no upper limit.

WHAT MAKES IT ATTRACTIVE

Minimal capital. There is no minimum capital requirement. An IKE can be formed with as little as €1 in share capital – and this is perfectly legal. In practice, however, €1 won’t cover your first invoice, your accountant’s fee, or your bank’s expectations. Most founders capitalise based on their actual business plan and near-term expenses. It’s also worth knowing that limited liability, while real, has practical limits: banks and landlords routinely require personal guarantees from partners for loans, credit lines, and leases, regardless of the corporate structure. The IKE protects you from ordinary commercial risk – it doesn’t eliminate the need for guarantees in secured transactions.
Fast and inexpensive formation. Using standardised model articles, an IKE can be registered entirely online through the GEMI portal (the General Commercial Registry) in as little as one to two business days. Total state fees start from as little as €60. No notary is required unless you’re contributing real estate or opting for custom articles.
Flexible governance. Unlike the SA (Société Anonyme), which requires a board of at least three directors, an IKE can be managed by a single person – who can also be the sole partner. There are no mandatory board meetings, no audit committee requirements for small companies, and minimal formality. You structure governance to fit your business, not the other way around.
Flexible contributions. Partners can contribute cash, assets, intellectual property, services, or even future work. This makes the IKE particularly well-suited for service businesses, tech startups, and professionals who want to incorporate without large upfront capital.

HOW IT COMPARES

The IKE is not the only option. Here’s how it sits alongside the main alternatives:

SA (Ανώνυμη Εταιρεία — Société Anonyme). The traditional Greek corporation, required for larger enterprises, publicly traded companies, and regulated industries. Minimum capital is €25,000. Governance is more formal – a board of directors, general assemblies, and stricter reporting. It carries more credibility with institutional partners and investors, but the overhead is significantly heavier. If you’re a startup or SME, an IKE will almost always be the better fit initially — with the option to convert to an SA later if needed.
EPE (Εταιρεία Περιορισμένης Ευθύνης). The older Greek limited liability company. Functionally similar to an IKE but with less flexibility and a more cumbersome formation process. It has largely been superseded by the IKE and is rarely chosen for new formations today.
Branch office. A foreign company can operate in Greece through a registered branch rather than a separate entity. The branch has no separate legal personality – it’s an extension of the parent company. This can be useful in certain situations, but it also means the parent bears full liability for the branch’s activities. Tax treatment is equivalent to a Greek company.
Sole proprietorship (Ατομική Επιχείρηση). The simplest form – no separate legal entity, no limited liability. Income is taxed at progressive personal rates, which become less favourable above approximately €40,000 in profit. For many freelancers and consultants earning above that threshold, incorporating as a single-member IKE offers both tax efficiency and asset protection.

TAX AND ONGOING COSTS

This is where most foreign founders want clarity, so here it is:

Corporate income tax: 22% on profits.
Dividend tax: 5% on distributed profits. Dividends are taxed at source, and no additional tax is owed on the partner’s personal return. Note that this means IKE profits are effectively taxed twice – 22% at the corporate level and 5% on distribution. One common way to mitigate this: partners who also serve as managers can receive a salary, which is deductible at the corporate level before profits are calculated. The right balance between salary and dividends depends on your individual circumstances and should be planned with your accountant.
VAT: Standard rate of 24%, with reduced rates of 13% and 6% for specific categories. Registration is mandatory for most businesses.
Social security: If you are the manager of the IKE (as most sole founders are), you are subject to social security contributions as a self-employed person. Employer contributions are approximately 21.79% and employee contributions approximately 13.37% (2025 rates). These are among the most significant ongoing costs and should be factored into planning from day one.
Accounting: All IKEs must maintain double-entry books under Greek Accounting Standards. This means you will need a certified accountant – it’s not optional, and it’s one of the main operational costs. Annual financial statements must be filed with GEMI.
No capital duty on formation. There is no capital tax when establishing an IKE. A 0.2% capital concentration tax may apply to certain future capital increases.

THE FORMATION PROCESS

For an IKE with model articles, formation is straightforward:

The founder(s) select the IKE form on the GEMI online portal (e-YMS), complete the required fields – company name, registered office, corporate purpose, capital, partners, and manager – and submit electronically with digital signatures. The company receives its GEMI registration number upon approval, typically within one to two business days.

Before or shortly after incorporation, you’ll also need to obtain a Greek tax identification number (AFM) for the company and each partner, open a business bank account and deposit any declared capital, register with the tax authority (AADE) for corporate tax and VAT obligations, and check whether your specific business activity requires any additional licences or permits.

For companies needing custom articles – special share classes, bespoke governance arrangements, non-standard contribution structures – the process takes slightly longer (typically three to ten business days) and benefits from legal drafting.

Foreign founders who are not present in Greece can appoint a legal representative through power of attorney to handle the entire process remotely.

WHAT WE DO

We handle IKE formations for foreign clients regularly – from single-member companies for freelancers and digital nomads to multi-partner structures for cross-border ventures. Our role covers the full scope: advising on the right structure for your situation, drafting or reviewing articles of association, managing the registration process through GEMI, coordinating tax registration and bank account opening, and connecting you with a reliable accountant for ongoing compliance.

We also advise on related matters that arise before, during, or after formation – residency and work permit implications, real estate held through a company, intellectual property contributions, and how your Greek entity interacts with your tax position in your home country.

Contact us to discuss what you’re planning. We’ll tell you what structure makes sense, what it will cost, and how long it will take.