Setting up an IKE in Greece
The IKE (Idiotiki Kefalaiouchiki Etaireia / ฮฮดฮนฯฯฮนฮบฮฎ ฮฮตฯฮฑฮปฮฑฮนฮฟฯ ฯฮนฮบฮฎ ฮฯฮฑฮนฯฮตฮฏฮฑ) is Greece's most popular business structure for startups and small-to-medium enterprises. Introduced in 2012 under Law 4072/2012, the IKE was designed to simplify company formation and attract entrepreneurship. It has rapidly become the preferred choice for both Greek and foreign entrepreneurs looking to establish a business in Greece.
Why choose an IKE
The IKE offers a compelling combination of limited liability, minimal capital requirements and simplified administration. Unlike the older EPE structure, an IKE can be formed with zero minimum share capital, although most founders choose to contribute at least a nominal amount. The formation process is streamlined through the One Stop Shop (YMS) service, significantly reducing bureaucracy compared to traditional company types.
Types of capital contributions
- Capital contributions (kefalaiakes eisphores): Traditional cash or in-kind contributions forming the share capital
- Non-capital contributions (exokefalaiakes eisphores): A unique feature of the IKE โ partners can contribute labor, services or know-how instead of cash
- Guarantee contributions (eggyitikes eisphores): Partners pledge personal liability up to a specified amount
Formation process step by step
Step 1: Draft the articles of association. For an IKE, this can be done by private agreement without a notary, saving significant costs. A notary is only required if real estate is contributed as capital.
Step 2: Register the company through the One Stop Shop (YMS) at the local Chamber of Commerce or via the e-YMS digital platform. This consolidates registration with GEMI (General Commercial Registry / ฮฮตฮฝฮนฮบฯ ฮฮผฯฮฟฯฮนฮบฯ ฮฮทฯฯฯฮฟ), the tax office (DOY) and the social security fund (EFKA) into a single process.
Step 3: Obtain the company's AFM (tax identification number) and activate it at the competent tax office.
Step 4: Open a corporate bank account at a Greek bank and deposit any initial capital.
Step 5: Register with EFKA for social security obligations of the managing partner and any employees.
Costs and timeline
The IKE formation is remarkably cost-effective. Registration fees at GEMI are approximately โฌ70, plus Chamber of Commerce fees of around โฌ60 and a publication fee. Without a notary, total formation costs typically range from โฌ300 to โฌ800 including professional fees. The process can be completed within 1 to 5 business days through the e-YMS platform, making it one of the fastest company formations in the EU.
Tax obligations
An IKE is subject to corporate income tax at 22% on net profits. Distributed dividends are taxed at an additional 5%. The company must also charge FPA (VAT) at the applicable rate โ typically 24% for most goods and services. Annual financial statements must be filed with GEMI, and monthly or quarterly FPA returns are required.
Zunapro guides international entrepreneurs through every step of IKE formation in Greece, handling the registration so you can focus on building your business.