Setting up a company with a capital of just 1€ and without visiting the tax office? And yet it can be done


Setting up a company with only 1€ of capital

One of the stages in the development of business activity is what form the company that will be set up will take.

The right choice may seem minor at first, but it is important later on and can bring multiple benefits.

The new form of company that has been created in recent years is called Private Equity Company (IKE), which requires a minimum time of incorporation and a relatively small amount of documentation and is positioned between the Sole Proprietorship and other forms of corporate forms such as the EPE, OE and SA.

The IKE has many advantages over other corporate forms.

  • Minimum capital corresponding to one Euro
  • The shares are separated from the capital
  • It is a commercial company and has full legal personality
  • It has limited administrative and operational costs (lawyer, notary and notifications)
  • Any contribution (capital, labour or guarantor's liability) is recognised and the relationship between the partners and the company is simple and clear
  • It has a relatively high flexibility in choices and changes/modifications due to its two-sided identity as both a corporation and a personal (private) company



Often when the start is immediate and urgent, a dilemma often arises. "INDIVIDUAL or ICE". The following comparative table can be quite enlightening as to which corporate form to choose.

Business tax 650,00 € 1.000,00 €
Establishment procedure At the tax office through the One Stop Service of the GEMI
Tax Seat at home yes under certain conditions depending on the activity NO
Use of a co-working space as a tax domicile yes under certain conditions depending on the activity yes under certain conditions depending on the activity
Accounting Books Category  B' - Accounting records C' - Double-entry accounting
Tax liabilities Less More - monthly
Tax rate Starts from 9% 24%
Advance payment of tax 100% 100%
Dividend tax It has not 5%
Publication of financial statements You do not need Enforced
Inventory obligation No Yes
Duration of Operation Available at Fixed-term (12 years unless otherwise specified in the statutes)
Minimum mandatory capital Not required One (1) euro
Liability of Partners Unlimited - And with their personal property Responsibility lies with the IKE. The partners up to the amount of their contributions
Possibility of receiving a fee from the manager No Yes
Annual GEMI Subscription 30,00 € 100,00 €
Change in activity Updates to the EFKA and the tax register Amendment of the Articles of Association and submission to GEMI


Before making the final choice on what form of business to choose, it is necessary to first clarify what the business purpose is based on the plan and then calculate how it will evolve in the first years in terms of turnover and profits.

The choice of the legal form of an IKE is advantageous when the company is expected to make sufficient profits from the beginning and, based on its business plan, is going to make immediate and rapid growth with branches and markets.



Procedure for the establishment of an IKE

If it is decided to set up an IKE as a legal form, the entrepreneur should bear in mind the following:

Headquarters of IKE: Although still under formation, the registered office can be leased with a guarantee from the manager of the company being formed.

Purpose of the IKE: You should include the correct SICs and provide for those you will have at least come up with in the lines of business so that the adviser can activate the correct SICs during the incorporation. It is advisable to make a mention of any activities you may engage in in the future so as to avoid unnecessary amendments to the articles of association.

Name and distinctive title of the company: As in all businesses, it is essential that there is no other company with the same name and the same distinctive title. On the name side you can use whatever you wish, as it is not necessary to list the names of the participants. In the area of naming, the Marketing & Business Development department of EPIDOSIS can help and guide you to find the appropriate call sign for your company under formation.

Capital of the company: The law is clear that the required capital is only 1€. However, what is recommended is to define the capital to be invested in the business. This does not avoid problems in the accounting articles as well as the imposition of 1% capital accumulation tax on the amount in each capital increase.

Company Administrator: The appointed manager is the one who will have the obligation to have EFKA insurance while for partners it is optional. Also, the incorporation procedure does not require tax information for both the manager and the partners. It is further noted that if you choose the manager to neither the 1% and at the same time the partner has almost 100% on the partnership shares, then in this case the IKE is considered a single person, and therefore the insurance obligation of both the manager and the partner is created.

From 2020, the contributions for the main insurance of managers of IKEs and sole proprietorships have changed. They are not linked to the amount of their taxable income, but neither are they linked to years of insurance. Also, company managers are now given the right to freely choose their insurance class beyond the minimum compulsory one.


After the start

After starting the company, the steps that follow are as follows:

  • Open a bank account Bank account: Issue a current account, immediately, as within 30 days from the start the IBAN must be declared in taxis as a business account.
  • Website creation: The registration of the domain is necessary in order for the website address to be notified to the GEMI. In this case, please contact the Marketing & Business Development department of EPIDOSIS to provide you with the relevant directions.
  • Deposit of the Certificate of Initial Capital with the General Registry of Commerce accompanied by the Management Report.
  • Posting of the lease of the headquarters in TAXIS with the declaration of the VAT number of the IKE and the corresponding registration of the owner of the headquarters in TAXIS.
  • If you wish to employ staff in IKE, you will have to make an inventory at IKA. The whole process should be started a few days in advance by providing your accountant with the details of the employees in order to complete the required actions in time for the staff to start working.
  • In case the activity of the newly established IPE requires the supply of a cash register or tax machine, you should check whether you are subject to P.O.S. Finally, as of 1/1.2021, electronic invoicing through the myData application of the AADE becomes mandatory. And here EPIDOSIS can recommend you as an official Accounting Partner of EPSILON NET the EPSILON SMART application which is fully compatible with the myData platform of AADE.

At this point the IKE starts its activity and you are ready to develop your business.



#PoweredbyEPIDOSIS - The ultimate 360o Support only from EPIDOSIS



EPIDOSIS has been active for the last 30 years in Greece, Cyprus, Bulgaria and Poland, providing personalized tax planning services with a strong advisory character for more than 30 years. Extensive involvement with these markets has equipped us with unparalleled experience and the necessary expertise to help you realize your business venture with the highest possible degree of success.

Every company that is supported by EPIDOSIS in accounting and tax matters is covered in all areas of the business spectrum. Starting from legal and translation support, continuing with the search for inclusion in subsidized programs and funding to strategic promotion and business development support of the company.

The cooperation with EPIDOSIS will "introduce" you to the absolute 360o support from a single company. This is what we call #PoweredbyEPIDOSIS and sets us apart from anything you have known so far in the field of Business Consulting.


- Personalised tax planning

Accounting planning and control are necessary to avoid tax risks and to obtain the maximum possible benefit within the framework of each country's legislation. Correct tax planning shields your entire business, taking into account the needs and the particular challenges it faces in the environment in which it operates.


- Full tax and banking support

EPIDOSIS provides you with Tax and Accounting Support services and a comprehensive tax planning that will embrace every aspect of your business. At the same time we are able to support every businessman in opening current bank accounts in Greek and foreign banks.


- Payroll coverage and support 

Monitoring of the manager's insurance contributions and obligations as well as the recruitment procedures, payroll and making all necessary submissions regarding it on both a monthly and annual basis.


- Electronic invoicing application EPSILON Smart

An integral part of the company's accounting support is the installation of an electronic invoicing application as from 20 July 2020 all businesses are obliged to transmit the data of all their accounting records to the MyDATA platform of the Hellenic Revenue Authority.

This platform holds the electronic tax books (e-books) which must be in line with the company's income tax returns (E3), VAT and other taxes and fees.

EPIDOSIS, as an Official Accounting Partner of EPSILON NET, can provide every freelancer and small and medium-sized business with the solution of EPSILON Smart, the best electronic invoicing application, in order to easily, quickly and reliably start the transition to electronic bookkeeping and electronic invoicing.


- Free Tax Training Seminar

In each new partnership EPIDOSIS organizes a Personalized Tax Seminar on behalf of the client. This concerns the correct issue of the company's documents and its accounting management. The training takes place at the start of the company's operations and can be repeated if required. It concerns general management while specific issues are clarified at any time required.


- Integrated Legal Support

The Legal Department of our company with our experienced lawyers, apart from the legal establishment of your company, undertake the drafting of all commercial contracts and other legal issues that will arise during the operation of your company. EPIDOSIS can additionally safeguard your interests in any transaction with potential partners and can take care of your security for issues such as trademark registration.


- Search for inclusion in subsidised programmes

EPIDOSIS, with the start of the cooperation, will undertake the search for inclusion in any financial and subsidized programs such as:


- NSRF programmes

- Programmes of the Development Law 4399/2016


- Marketing & Business Development Support

The consulting department of EPIDOSIS with the help of a specialized staff can formulate for you a comprehensive marketing and branding mentoring proposal, undertaking the development of corporate websites, e-shop and even the web and social media promotion strategy as well as the development of promotional material and video.

Each project is supervised by us having constant contact with the implementation team in order to ensure the ideal result and the ultimate success of the promotional campaign.

At the same time, it will provide you with regular progress reports and training sessions, through which you will be able to enrich your knowledge and skills in managing your social media accounts.


- Establishment - Establishment of a company in Bulgaria, Cyprus or Poland

Today, more than ever, the European Union economy can offer a range of options with significant advantages for developing a flexible and competitive e-business, breaking down economic barriers and overcoming the "bottlenecks" of a local company.

Within a few days you can obtain a VAT number and corporate current bank accounts, while full activation will be completed in 10-15 working days. At the same time, your company will be registered in the VIES system and will obtain a European VAT number and an EORI customs number for international transactions with third countries.


- Foreign branch located in another European country

Establishing a branch in Greece is an extremely simple and short procedure, in order to achieve all the tax facilities offered by the system of the specific European countries without interrupting your business activity in Greece.


Epidosis Provided Services


This post is purely informative and does not form part of any specialist advice. If you would like to learn more about the flexible forms of setting up an online store you can contact the experienced EPIDOSIS team directly at 2310 477725 or fill out the contact form below to make a free appointment to discuss Personalised Tax Planning and the development of your business.

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