🔹 Introduction: Why Choosing the Legal Form Matters
In 2025, selecting the right legal form when setting up a company in Greece is not a procedural step — it’s a strategic decision with major tax, insurance, legal, and operational implications. The legal form of a company determines:
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the level of liability of shareholders or partners,
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the potential for growth and attracting investors,
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how profits and distributed amounts are taxed,
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the cost of formation and ongoing operation,
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the ability to participate in tenders or cross-border projects.
The three most commonly used legal forms in Greece today are:
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the Private Company (IKE),
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the Single-Member IKE, and
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the Societe Anonyme (S.A.).
1. IKE, Single-Member IKE, and S.A.: Definitions and Legal Characteristics
✅ Private Company (IKE)
Regulated by Law 4072/2012, the IKE was introduced as a flexible corporate form with limited liability, tailored for small and medium-sized enterprises and startups.
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Minimum capital: €1
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Types of contributions: cash, in-kind, guarantee-based
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Management: by one or more managers
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Articles of Association: drafted via the online One-Stop Shop (e-YMS), unless a notary is required (e.g. for high-value in-kind contributions)
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Publicity: all actions and financial statements must be registered with the General Commercial Registry (GEMI), per Law 4919/2022
✅ Single-Member IKE
This is the same legal structure as the IKE but with only one partner (individual or legal entity).
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Managed by the sole partner/manager
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Fully digital incorporation
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Ideal for sole proprietors seeking limited liability and tax independence
✅ Société Anonyme (S.A.)
Regulated by Law 4548/2018, this form is primarily used by medium or large companies — particularly those engaging internationally, seeking financing, or participating in public procurement.
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Minimum capital: €25,000
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Management: governed by a Board of Directors, which may consist of a single member (Article 77, Law 4548/2018)
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Articles of Association: signed via private agreement through e-YMS, unless a notary is required in specific cases
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Publicity: broader than IKE — mandatory publication of all annual financial statements in GEMI
2. Comparative Table – Legal and Tax Information
| Parameter | IKE / Single-Member IKE | Société Anonyme (S.A.) |
|---|---|---|
| Minimum Capital | €1 | €25,000 |
| Articles of Association | Private document (via e-YMS) | Private document (via e-YMS or notary in specific cases) |
| Management | Manager | Board of Directors (option for single-member board) |
| Disclosure | All corporate actions and balance sheets filed with GEMI | All corporate documents and financial statements filed with GEMI |
| Corporate Tax Rate | 22% | 22% |
| Dividend Tax | 5% | 5% |
| Manager’s Insurance | Mandatory EFKA (self-employed status) | See next section (depends on shareholding percentage and pay) |
3. What’s More Advantageous in 2025 – Business Scenarios
🧾 Freelancer / Consultant / Professional
Recommended structure: Single-Member IKE
✅ Tax independence, limited liability, low setup and operational cost.
🧠 Startup with Investors
Recommended structure: Start with IKE, with the option to convert into an S.A. later
✅ Flexibility, scalable capital structure, compatible with incubators and VCs.
🏢 Real Estate Exploitation
Recommended structure: IKE or Single-Member IKE
✅ Ability to depreciate investment costs and transfer equity (shares/units) instead of property.
🌍 International Trade / Partnerships with Multinationals
Recommended structure: S.A.
✅ Formal structure recognition, enhanced credibility, compatible with institutional partners.
4. Insurance Topics – EFKA for Managers and Board Members
| Role | Insurance Obligation |
|---|---|
| Manager of IKE or Single-Member IKE | ✅ EFKA as self-employed (Article 38, Law 4387/2016) |
| Board Member without remuneration | ❌ No insurance obligation |
| Executive Board Member with board fee & ≥3% | ✅ EFKA as self-employed |
| Executive Member with salary & <3% stake | ✅ EFKA as employee (dependent employment contract) |
| Executive Member with salary & ≥3% stake | ✅ EFKA as self-employed, regardless of the type of pay |
📌 Key eligibility criteria:
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Type of compensation (board fee vs. salary)
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Shareholding percentage (≥3%)
5. When to Choose IKE and When S.A. – Use Cases
| Scenario | Recommended Legal Form | Justification |
|---|---|---|
| Individual with limited capital | Single-Member IKE | Low cost, simplified management |
| Partnership of 2–3 individuals | IKE | Flexible ownership and management structure |
| Company planning international partnerships | S.A. | Prestige, transparency, suitable for investors |
| Startup with VC/accelerator funding | IKE → conversion to S.A. | Low initial cost, easy transition to investor-ready structure |
| Real estate with tax optimization goals | IKE | Business use without exposing personal assets to business risk |
✅ Example 1 – Freelancer / IT Consultant
Scenario: A programmer, until now operating as a sole proprietor, decides to “transfer” their activity into a corporate structure.
Goals: Limit personal liability, simplify taxation, and issue invoices to businesses.
Choice: Single-Member IKE
Why:
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No need for partners
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Low setup cost (€1 capital)
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Taxed at 22% on net profits and 5% on dividends
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Ensures limited liability for personal assets
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Mandatory EFKA insurance as self-employed
✅ Example 2 – Startup with Funding Potential
Scenario: Three founders create a tech platform and plan to approach investors (VCs, accelerators).
Goals: Fast incorporation, flexible governance, prepare for investor entry.
Choice: IKE → future conversion to S.A.
Why:
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The IKE offers flexibility in articles of association and governance
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No large initial capital required
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If investment arises, it can easily be converted to an S.A., which is preferred by institutional investors
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Provides legal protection and tax clarity
✅ Example 3 – Real Estate Company with 4 Properties
Scenario: An individual owns four apartments rented out short-term and long-term. They want to transfer them into a company structure.
Goals: Tax structuring, cost depreciation, future transfer without capital gains tax.
Choice: Single-Member IKE
Why:
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Properties are contributed as company assets
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Maintenance costs and loan interest become tax-deductible
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In case of sale, IKE shares are transferred—not real estate (lower tax)
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Ensures legal separation of personal assets
✅ Example 4 – Business with International Partnerships & Public Tenders
Scenario: A consulting firm with EU-based clients aims to participate in international projects.
Goals: Tax transparency, investor attractiveness, professional credibility.
Choice: Société Anonyme (S.A.)
Why:
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The S.A. is a globally recognized structure
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Can appoint a Board of Directors and issue shares
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Easier access to public tenders or EU-funded programs
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Mandatory publication of financial statements increases transparency
✅ Example 5 – Family Business with Succession Planning
Scenario: A real estate business worth over €1,000,000, involving three active family members. The father wants to gradually transfer control to his children.
Goals: Smooth transition, without fragmenting assets or creating disputes.
Choice: S.A.
Why:
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Possibility to issue shares with special rights (e.g. non-voting shares)
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Allows shareholder agreements that protect control
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Easier share transfers without notary tax (under conditions)
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The S.A. form offers more security to third-party investors or banks
✅ Example 6 – Investment Scheme with Foreign Shareholders
Scenario: A Greek entrepreneur partners with two German investors to acquire a startup in Greece.
Goals: International credibility, share transfer flexibility, compliance with due diligence standards.
Choice: S.A.
Why:
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Foreign investors are familiar with and prefer the “S.A.” model
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Allows shareholder agreements and strict articles of association
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Facilitates possible company sale via share transfer
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Governance terms can be precisely defined (e.g. number of board members, veto rights, powers)
✅ Example 7 – Holding Company for Participations and Capital Management
Scenario: A family with stakes in four different companies forms a holding company for tax structuring and asset protection.
Goals: Dividend management, centralized governance, future succession.
Choice: Single-Member IKE or S.A. (depending on scale)
Why:
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The IKE allows low-cost, fast incorporation with tax benefits
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The S.A. is preferable if the participations are in large or foreign companies
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Leverages dividend and capital gain exemptions under Law 4172/2013
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Aims for tax neutrality within the group
✅ Example 8 – Startup Planning for IPO or Private Equity Exit
Scenario: A SaaS startup with 3 founders has completed seed funding and is preparing a Series A round, aiming for a sale or IPO within 5 years.
Goals: Attractiveness to PE funds, structured exit potential, ESG and governance compliance.
Choice: S.A. (either from the start or post-conversion from IKE)
Why:
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Allows equity splits with preferred shares
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Includes board structure, internal controls, and compliance framework
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Is the structure required by most investors before Series A+
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Enables easier share transfers via stock exchange or private placement
📊 Decision Table – Choosing the Right Legal Form in 2025
| Business Scenario | Recommended Form | Selection Criteria |
|---|---|---|
| Freelancer / Consultant / Professional | Single-Member IKE | Low cost, limited liability, simplified management |
| Early-stage startup | IKE | Flexibility, simple articles, VC/accelerator friendly |
| Startup with international funding or exit plan | S.A. | Preferred shares, board structure, investor-grade transparency |
| Real estate investments (1–2 people) | IKE or Single-Member IKE | Expense depreciation, easy share transfer, tax optimization |
| Holding company for participations | Single-Member IKE or S.A. | Tax benefits, group governance, capital structure flexibility |
| Family business with succession plan | S.A. | Shareholder design, asset protection, transfer ease |
| Company with public contracts or international projects | S.A. | Institutional credibility, compliance, formal structure |
| Small partnership (2–3 persons) | IKE | Flexible governance, low capital needs, convertible to S.A. |
| Company with foreign shareholders or cross-border activity | S.A. | Global recognition, suitable for shareholder agreements and institutional standards |
6. Conclusions
In 2025, both the IKE and the Single-Member IKE remain the most flexible, cost-effective, and operationally efficient choices for most entrepreneurs. They offer:
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Limited liability
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Simple and digital incorporation process
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Straightforward accounting and corporate structure
The S.A. is still the go-to legal form for:
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Larger enterprises
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Multi-shareholder ownership
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Investment structuring
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Internationally oriented companies
✅ The decision should be based on legal, tax, and strategic factors, and always made in consultation with specialized accountants, legal advisors, and business consultants.
