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5 Reasons to Recommend the Establishment of an IKE (Private Capital Company)

The Private Capital Company (IKE) is a corporate form that emerged in the Greek market in 2012. Due to the comparative advantages it offers, it is the most successful among company types for those interested in engaging in the business field.

1. Stable Tax Rate

Owners are aware in advance of the tax rate imposed on their profits, as there is a fixed tax rate of 22%, , while profit distribution is taxed at 5%. Πέραν Additionally, the tax prepayment prepayment for the first three years is reduced to 40%.

IKE keeps double-entry books, and its net profits are taxed at the same rates as Sole Proprietorships (EPE) and Public Limited Companies (AE), creating a unified tax framework for various forms of businesses, facilitating financial management and compliance with tax rules.

2. Limited Liability of Partners

The limited liability of partners in an IKE means that in the case of debts or other financial difficulties of the company, personal assets of the partners are not exposed or at risk.

3. No Required Capital

In comparison to Public Limited Companies (AE), where significant initial capital is required, IKE offers greater flexibility and is more accessible to small and medium-sized entrepreneurs as no initial capital is required.

The structure of IKE is less complex and requires less bureaucracy compared to other forms of companies, making it affordable and easy to establish and manage.

4. Easy Establishment

Through the e-Business Registry (GEMI) service, the establishment of an IKE can be completed in a very short time, sometimes even within an hour, minimizing the need to visit public services or publish in the Government Gazette. The process is electronic, allowing even more flexibility.

5. Speed

An additional advantage of IKE is the speed of decision-making. In this company form, decisions are made by the partner or partners holding the majority share, i.e., at least 51%. This differs from the process in Limited Liability Companies (EPE), where a majority agreement of partners is required along with ownership of a percentage above 51% for decision-making.

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