Stock Corporation

General Information

The A.E. offers the advantages of liability limited by shares, relatively easy transfer of shares and access to stock markets. However, to protect the larger number of shareholders thus attracted regulations are particularly strict.

Incorporation

Formation by at least two persons - individual or legal; nationality irrelevant.
Incorporation requires notarial deed of incorporation followed by entry into the Registry of A.E.s held by the competent Court of First Instance and publication of the articles of association.
The company comes into legal existence upon registrations.

Duration of incorporation approximately 1 month.

Incorporation costs depend on share capital, as a capital concentration tax of 1 per cent of the share capital as well as a special charge of 1 per cent of the share capital has to be paid. Notarial fees will amount to approximately € 1,500, registration and publication fees to approximately € 825.

Capitalisation and Financing

The statutory minimum share capital, which must be paid within two months of the establishment of the A.E., amounts to € 60,000. Shares can be paid in cash or kind. However, at least half of the minimum capital must be paid for in cash at incorporation.

Board Structure

An A.E. is managed and represented by a board of directors, consisting of at least three members, in and out of court. Members are elected by the shareholder' meeting for no longer a term than six years. The principle of collective management and representation applies if nothing else is provided for in the articles of association.

Shareholders' decisions are made by way of shareholders' resolutions at the annual or extraordinary shareholders' meeting. The shareholders' meeting is considered the highest corporate body and solely competent for deciding upon changes to the articles of association.

Annual Costs

Approximately € 850 (publication fees of more than € 450, annual contributions fees of approximately € 375).

Corporate Taxation and Financial Reporting

Resident companies are subject to corporate income tax on worldwide net income. Tax rate of 29 per cent for net profits of financial year beginning after 1/1/2006 and before 1/1/2007; tax rate of 25 per cent for net profits of financial year beginning after 1/1/2007.

Annual accounts must be drawn up within four months of the end of the financial year and then be audited by an independent auditor and approved by the general meeting. Accounts must consist of balance sheet, profit and loss statement, distribution results table and annex. The annual financial statements must generally be drawn up in accordance with Greek GAAP; they might be drawn up according to EU standards if further requirements are met.

Employee Participation in Corporate Bodies

None.