We participate in FOOD EXPO 2024 09-11/03: You will find us in Hall 02 / Booth Ε33

Individual Business to Private Company: Benefits and How to Proceed

With the new tax legislation, tax authorities will deny the right to professionals – namely, individual businesses – to incur losses. Consequently, only the minimum taxable income will be accepted, taxed accordingly, and, of course, allowances or other privileges will be cut as soon as the “theoretical income” aligns with the actual income. In reality, starting from 2023, individual businesses will have three income sources:

  • Accounting Income: This is based on the books but will only be considered if it exceeds the other two sources.
  • Minimum Taxable Income: Calculated using a new method, ranging from €10,920 to €50,000 annually, provided there are no special conditions.
  • Income based on Living Expenses: This will continue to be calculated based on living expense documents and will not be abolished.

The solution of converting the individual business into a Private Company is already being highlighted as an alternative within the accounting community.

Advantages:

  • Indefinite Duration: A Private Company can now exist not only for a specified period but also indefinitely.
  • Taxation of Profits: Private Companies are consistently taxed at 22%, regardless of the amount of profit. The prepayment rate is 40% for the first 3 years from the year of establishment and 80% thereafter.
  • Taxation of Dividends: Dividends are taxed at a rate of 5%.
  • Zero Initial Capital: The initial capital for establishing can be as low as €0.
  • Easy Formation: Formation is done through registration in the General Commercial Registry (GCR), creating both essential organs of the company: the partners’ assembly and the company manager.
  • Protection of Personal Assets: The partner’s personal assets are protected, as they are never at risk for the company’s obligations

You can send us a message on the Contact Form  or you can call at our offices in Athens   2106810690 on in Thessaloniki 2310477725 to set the date of the seminar.

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