Private Company (IKE): Advantages and the Critical Role of the Lawyer

27 Mar Private Company (IKE): Advantages and the Critical Role of the Lawyer

The Private Company (IKE) is one of the most modern and flexible corporate structures in Greece, offering significant advantages to entrepreneurs while ensuring the limited liability of its partners. The successful establishment and operation of an IKE require strategic planning and proper legal guidance, both during the formation process and throughout its operation.

Advantages of IKE

The IKE has emerged as the most popular corporate form for new entrepreneurs and small to medium-sized enterprises due to the following advantages:

• Limited liability of partners: Partners are only liable up to the amount of their contributions, protecting their personal assets.
• Flexibility in contributions: Contributions are not limited to monetary amounts but can also include service provision or guarantee contributions.
• Quick and cost-effective establishment: The company can be easily set up through the e-ΥΜΣ platform without the mandatory presence of a notary, unless otherwise stipulated in the articles of association.
• Low operating costs: There is no minimum capital requirement (beyond €1), and administrative expenses are significantly lower compared to other corporate structures.
• Possibility of a single-member IKE: The company can be established and operated by a single entrepreneur.
• Flexible management and decision-making: A board of directors is not required, and decisions are made by a simple majority of the partners.
• Tax benefits: Profits are taxed at 22%, while dividend distribution is subject to a tax of just 5%, resulting in a competitive total tax burden of 26%.
• No mandatory insurance for partners: Only the manager is required to be insured, unlike partnerships where all partners must pay social security contributions.

The Role of the Lawyer in the Establishment and Management of an IKE

Although the establishment of an IKE may seem simple due to the electronic process, proper legal planning and specialized legal support are essential. Our lawyers provide services such as:

Legal Planning & Consulting

• Selection of the appropriate legal form (IKE versus other corporate structures).
• Structuring partner participation and distribution of rights.
• Choosing the optimal type of contributions (capital, non-capital, guarantee contributions).

Drafting and Customization of the Articles of Association

• Tailoring the articles of association to meet the company’s specific needs.
• Ensuring partner protection from legal uncertainties.
• Defining decision-making processes, share transfer regulations, and crisis management procedures.

Establishment Process via e-ΥΜΣ

• Assistance in completing all necessary information.
• Handling legal procedures for registration with GEMI and obtaining a Tax Identification Number (TIN).
• Ensuring compliance with the regulatory framework.

Legal Support During the Operation of an IKE

The proper management of an IKE requires continuous legal support to ensure smooth operations and mitigate legal risks. Our services include:

Corporate Governance Consulting

• Legal obligations of partners and the manager.
• Procedures for amending the articles of association and changing the manager.
• Compliance with tax and social security regulations.

Management of Corporate Relations & Contracts

• Drafting and reviewing corporate agreements.
• Protecting partners’ interests in cases of disputes or withdrawal.
• Drafting confidentiality agreements (NDAs), terms of use, and data protection policies (GDPR).

Dispute Resolution & Legal Representation

• Legal support in disputes between partners.
• Handling cases related to third-party claims, suppliers, or employees.
• Addressing legal issues concerning company management.

Why Choose “Karpouzis-Lianou & Associates Law Firm”

Our law firm, “Karpouzis-Lianou & Associates,” has extensive experience in the establishment and management of IKEs, as well as in providing specialized legal support to businesses.

✅ Expertise in corporate law – We provide comprehensive legal guidance throughout an IKE’s lifecycle.

✅ Personalized approach – We analyze each business’s needs and provide tailored solutions.

✅ Immediate and reliable support – We address every legal challenge with speed and efficiency.

Proper legal guidance is the key to your IKE’s success. Contact us to help you take your next business step with confidence and legal security.