An important consideration before doing business in Greece is choosing the most suitable corporate entity. However, there are several other key elements to consider. A one-stop service is available (with limitations) for the incorporation of all company types, provided that they use basic (ie, template) articles of association; however, there are no 'off-the-shelf' companies in Greece. This article outlines the basic types of Greek corporate entity (excluding maritime entities).
Including: Capital; Limited liability; Corporate statute; General partnerships; Limited partnerships; Limited liability companies; Sociétés anonyme.
Parliament has voted in a new law aimed at simplifying incorporation procedures. For some time now, this has been a priority of the economy minister and is viewed by her staff as a significant measure towards encouraging new business. It is also envisaged that incorporation costs will by cut by nearly half, as well as effectively facilitating one-day incorporation.
The health minister has announced a controversial plan to limit shareholder participation in companies involved in the provision of primary healthcare (ie, diagnostic services) by implementing a 51% majority rule in favour of doctors. The proposals are already controversial and, if enforced, will constitute a significant deviation from the common principles of company law.
This update looks at the potential personal liability of a chief executive officer towards the company, the government and third parties. Greek law makes no distinction between the person holding the office of managing director and the person who acts as managing director through, for example, power of attorney. Thus, most penalties apply to those holding office and those exercising actual power.