- Why choose to set up a sole proprietorship?
The most basic form of business ownership is the sole proprietorship. You mainly choose it because:
As an owner you have a direct, personal interest in your business and therefore you will strive to be as efficient as possible.
Decisions are made quickly.
Have a close personal relationship with staff and customers.
The operation of the sole proprietorship starts easily and with minimal formalities or bureaucratic procedures.
You have low overhead costs.
There is confidentiality as to its financial and property size (there is no obligation to publish balance sheets).
She is free to differentiate herself in the products and services she trades as she wishes, without the need to amend the articles of association.
You have the ability to respond quickly to changing market conditions.
The growth and development of a sole proprietorship is based solely on your skills.
- What are the main characteristics of a General Liability Company?
The special characteristics that the General Company presents and that specialize it are the following:
The partners of the General Company are responsible with all their assets for all the obligations of the company, with their joint and several liability. That is, each partner is responsible with his individual property for the fulfillment of the company’s obligations.
With the solution of the company, the responsibility of the partners for any existing debts of the company does not cease.
The General Company does not need a notarial document for its preparation, on the contrary, a private contract is enough.
Upon the bankruptcy of the company, the general partners also go bankrupt.
- What are the main characteristics of a Limited Liability Company?
The special characteristics that the Limited Liability Company presents and that specialize it are the following:
The division of the partners of the Limited Liability Company into two categories, the general partners and the limited partners.
The liability of the general partners towards the creditors of the company is joint and several and unlimited. That is, each general partner is responsible with his personal property for the fulfillment of the company’s obligations.
The liability of the limited partners is limited and cannot exceed the amount of its contribution to the company.
The limited liability company does not need a notarial document for its preparation, on the contrary, a private contract is enough.
- Why choose to set up a personal company (General / Limited Liability)?
The advantages of a personal company are similar to those of a sole proprietorship:
The free formation of relations between the partners is allowed.
The principle of self-management applies, ie only the partners have the power to manage and represent the company.
The principle of equality applies to relations between partners.
There is no obligation to pay additional contributions without the consent of the partners.
The simplicity in terms of the establishment and operation of the company.
It is small in its standard form and with a closed number of partners.
The low overhead costs of both operation and set-up, as no capital raising is required.
High motivation, as the personal element is strong as an integral part of the company.
The company has a wider variety of experiences that it can rely on when making decisions.
Administrative tasks can be shared.
- Why not a general partnership?
The reasons that could act as a deterrent to starting a well-established company are:
Unlimited Liability: In the Limited Liability Company all the partners are unlimited and fully liable for the corporate obligations with their personal property. The general partner who enters the company is unlimited and fully liable for corporate debts that existed before his entry into the company. Corporate lenders can at any time turn against the general partner without having to turn against the company first.
Commercial status of the partners: The general partner acquires the commercial status, which implies the occurrence of all the adverse consequences of the commercial status (eg bankruptcy, etc.)
Bank Lending: The personal company has no obligation to follow such strict accounting rules and books, has a limited publicity system and is generally associated mostly with simpler business endeavors. This makes it more difficult for the lending bank to judge the real financial situation of the company, being an obstacle to bank lending. This, of course, is not entirely true.
Personal element: An essential element of the organization and operation of the company is the personal connection and relationship between the partners through the continuous contribution of everyone who arrives.
- Why not a Limited Liability Company?
The reasons that could act as a deterrent to starting a limited liability company are:
Inability of the limited partners to participate in the corporate governance and representation: The limited partner cannot be appointed a manager and therefore has no way of participating in the corporate governance and representation.
Coexistence of limited and unlimited partners: The general partners are liable up to the amount of their contribution to the share capital, while the general partners are unlimited with their personal property. So the only motivation for organizing a business partnership with the legal form of a limited liability company is that of the coexistence of two different partners with different responsibilities.
Unable to appear in the name: The name of the limited partner cannot appear in the company name.
- What are the main characteristics of a Private Capital Company (IKE)?
The specific characteristics of the private capital company (IKE) which specify it are the following:
The paid-up recommendation capital can amount to a minimum of one (1) euro.
It enables the partners to contribute, in addition to capital in cash or in kind, other contributions, such as undertaking to perform work or providing services, which are also considered as capital, resulting in persons contributing work or solvency to company, to be considered as partners and to receive corporate shares.
Only the company with its property is responsible for the corporate obligations. However, with the exception of partners who have contributed guarantee contributions that are responsible for corporate debts up to the amount they have guaranteed.
All amendments to the articles of association (eg corporate changes, change of address, purpose, etc.) are published exclusively through the General Commercial Register (GEMI) or the corporate website, without the presence of a notary and the obligation to publish in the Official Gazette.
It is recommended and amended with a simple private document, which is controlled by the Services of the General Commercial Register (G.E.M.I), ie a notarial document is not required (unless assets are entered in the company, for the transfer of which a notarial form is required).
The duration of IKE is for a certain period of time unless otherwise specified in its articles of association with a maximum duration of twelve (12) years from its establishment.
- Why choose to set up a Private Capital Company (IKE)?
The Private Capital Company (IKE) is a new type of company with great adaptability and flexibility depending on the needs of the partners. This is confirmed both by the fact that its establishment requires a capital of only one euro, but mainly by the great constitutional freedom. In particular, the possibility of a contribution is expanded, ie whoever wants to contribute to the joint effort can contribute either money, or work, or undertake a guarantee liability.
There is also the possibility of settling issues that would not be possible under any other type of company. Such an example is the ability of the administrator to amend the articles of association, the appointment of an administrator by a partner, the limitation of the number of votes of each partner for making certain decisions, the minutes “by circumvention”, etc.
However, in addition to the ability of the partners to shape the physiognomy of the Private Capital Company at will, giving it either a personal or capital character, a number of facilities are provided that give it a comparative advantage over other corporate types. Such are the lack of mandatory notarial intervention, the lack of compulsory insurance for the partners, the possibility of writing company documents in a foreign language, the exemption from publication in the Government Gazette, etc.
- What are the basic characteristics of the Social Cooperative Enterprise (Koin.S.Ep.)?
The special characteristics presented by the Social Cooperative Enterprise (Koin.S.Ep.) and which specify it are the following:
They are Legal Entities under Private Law with commercial status.
A member has one vote regardless of the number of cooperative shares.
Each member of the Steering Committee is also a member of the company.
Each member must have at least one mandatory cooperative portion and up to five optional cooperative portions.
Only the participation of a natural person as a member-partner in Koin.S.Ep. does not give him commercial status and does not create insurance or tax liabilities.
A member of one Coin.S.Ep can not participate in another Koin.S.Ep that is based in the same Regional unit and the same statutory purpose.
The profits of Koin.S.Ep. are not distributed to its members, unless these members are and are employees of it.
- Why to establish
Τhe Social Cooperative Enterprise (Koin.S.Ep.) as a civil cooperative for social purposes:
It offers a solution to the ever-increasing unemployment rates through the creation of stable jobs.
It is a collective enterprise that offers solutions to real needs for the benefit of employees and the local community and leads to the acquisition of collective benefits related to the goods and services produced.
Helps to create bonds of solidarity between employees and the company as employees are considered necessary – with the exception of special exceptions such as external partners, probationary period, etc. – to be members of the company.
It promotes to the people who participate in it voluntarily the cultivation of the sense of “belonging” to a community, developing an activity together with other individuals, in which the motivation of their identity as citizens pushes them. source: www.isοtita.esee.gr
