Formation of an IKE in Greece

What Is an IKE and How Does It Compare?

The IKE is a modern company type introduced to simplify business formation and operation, particularly for small and medium-sized enterprises. It offers limited liability to its partners, meaning that 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 of just €1, which can be contributed in cash, in kind, or even as intangible assets or services (called “capital contributions in kind”).

An IKE can be established by a single individual (Single-Member IKE) or multiple partners. It features 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. Although the procedure is more streamlined than for other company types, it is still strongly recommended that you work with legal and financial professionals in Greece to ensure that 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, begin with thorough business planning. Define your business model, value proposition, market strategy, and financial projections.

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

Drafting a clear roadmap at this stage helps to 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 availability.

Next, draft the Articles of Association (Καταστατικό), which act as the constitution of the IKE. 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)

Given the flexibility of the IKE structure, you can tailor these articles to suit your company’s needs, but 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 especially 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, 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’ll also need to register with EFKA (Unified Social Security Fund). Administrators who are also shareholders may also be required to contribute, depending on the legal structure of their involvement.

It’s highly recommended to work with a certified accountant in Greece for tax filings, compliance, and payroll management.

Step 7: Industry-Specific Licensing

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

Failure to secure the necessary licenses can result in significant legal and financial consequences.

How We Can Help You Open an IKE in Greece

Starting a business abroad involves a maze of legal, administrative, and cultural challenges. Our law firm specializes in Greek corporate law and can assist you at every step of the IKE formation process.

From drafting your Articles of Association to representing your interests before tax authorities and GEMI, we ensure compliance, reduce delays, and help you build a strong legal foundation.

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