Formation of an IKE in Greece

What Is an IKE and How Does It Compare?

The IKE is a modern business structure designed to streamline the formation and operation of companies, particularly those classified as small or medium-sized enterprises (SMEs). IKE offers its partners limited liability, meaning their personal assets are protected and only their contribution to the company is at risk.

Unlike traditional forms such as the EPE or SA, the IKE requires a minimum capital contribution of just €1, which can be provided in cash, in kind, or as “capital contributions in kind”, such as intangible assets or services.

An IKE can be established by one individual (a Single-Member IKE) or by multiple partners. It has a flexible internal governance system with fewer formalities than other company types and can be managed by one or more administrators, depending on its articles of association.

This legal form is often compared to the German UG (haftungsbeschränkt) or the British Ltd.

Step-by-Step Guide to Opening an IKE in Greece

Opening an IKE involves several important steps, from initial planning and drafting legal documents to formal registration and ensuring tax compliance. While the process is more streamlined than that for other company types, it is still strongly recommended that you work with legal and financial professionals in Greece to ensure everything is done correctly and efficiently.

To help you get started, here is our general guide to walk you through the process.

Step 1: Business Planning

As with any new venture, start by carrying out thorough business planning. Define your business model, value proposition, market strategy and financial projections.

Decide what type of capital contributions your partners will provide, whether monetary, non-monetary (i.e. assets) or services, as this flexibility is a unique feature of the IKE.

Having a clear roadmap at this stage helps align partners and ensures smoother navigation through the legal and financial procedures ahead.

Step 2: Name Reservation and Articles of Association

Select a unique and distinguishable company name. Use the online tool provided by the General Commercial Registry (GEMI) to verify its availability.

Next, draft the Articles of Association (Καταστατικό), which act as the IKE’s constitution. This document outlines key elements such as:

• Company name and registered office
• Duration of the company
• Business purpose
• Type and amount of capital contributions
• Governance and decision-making rules
• Roles of the administrator(s)

Due to the flexible nature of the IKE structure, these articles can be tailored to suit your company’s needs. However, legal expertise is strongly recommended to ensure full compliance with Greek corporate law.

Step 3: Capital Contribution

The IKE stands out because of its minimal capital requirement: just €1. Capital may be contributed in various forms:

• Cash (the traditional method)
• Non-cash assets (property, equipment, etc.)
• Services (valued and agreed upon in the Articles)

All contributions must be clearly described and documented in the Articles of Association. This is particularly important if non-cash or service-based contributions are involved.

Step 4: Tax Number and Company Registration

After preparing your legal documentation, the next steps involve:

• Obtaining a Tax Identification Number (TIN) for the company and for each partner or administrator.
• Registering with GEMI through the One-Stop-Shop system, which may be a local notary or Chamber of Commerce office depending on your location.

You must submit:

• Articles of Association
• Partner and administrator IDs or passports
• Proof of address
• Capital deposit certificate (if applicable)
• Other regulatory forms required by Greek authorities

Upon approval, GEMI will issue your company’s registration number and announce its formation on the official government platform.

Step 5: Company’s Bank Account

After registration, visit a Greek bank to open a business account in the name of the IKE. Bring your company’s registration documents, tax identification number (TIN), and the personal documents of administrators and partners.

Deposit any capital declared in cash during formation. This account will serve as the financial hub for your operations, including receiving payments and managing expenses.

Step 6: Tax and Social Security Registration

Register your IKE with the Independent Authority for Public Revenue (AADE) for tax obligations, including VAT, corporate income tax and withholding taxes, if applicable.

If you plan to employ staff, you will also need to register with the Unified Social Security Fund (EFKA). Depending on the legal structure of their involvement, administrators who are also shareholders may also be required to contribute.

We highly recommend working with a certified accountant in Greece for tax filings, compliance and payroll management.

Step 7: Industry-Specific Licensing

Depending on your industry, you may require additional licences or certifications (e.g. for hospitality, construction or health services). Consult a local attorney or the Chamber of Commerce to identify sector-specific obligations.

Failure to obtain the necessary licences can result in significant legal and financial consequences.

How We Can Help You Open an IKE in Greece

Starting a business abroad can be challenging due to legal, administrative and cultural complexities. Our law firm specialises in Greek corporate law and can support you throughout the entire IKE formation process.

From drafting your Articles of Association to representing your interests before the tax authorities and the General Secretariat for the Mediterranean Economic Initiative (GEMI), we ensure compliance, reduce delays and help you build a strong legal foundation.

Once your IKE is operational, we provide ongoing legal support, including contract reviews, employment matters, tax issues and regulatory compliance, so you can focus on growing your business in Greece.