“THE COMPANY OF 1 EURO”
The private company’s share capital is determined by the partners without limitation and may even amount to zero. This type of company is often called ‘the 1-euro company’!
Partners participate with:
01. CAPITAL CONTRIBUTIONS
A private company (IKE) is a capital company introduced with Law 4072/2012. It has legal personality and is of commercial nature even where its purpose does not entail commercial activities.
The deed of establishment of the company is a document that must comprise the articles of incorporation (Articles). It is not necessarily a Public Notary’s deed unless otherwise provided for by a specific law provision or the founders choose it to be so. The company is established through the One-Stop service, with the establishment procedure not exceeding a 7-day period.
“Capital contributions”, i.e. contributions either in cash or in kind that make up the company’s capital.
Capital contributions in kind are permitted solely if the item contributed is an asset that may be valuated pursuant to section 8 (5), Codified Law 2190/1920.
This is the most common form of participation.
02. NON-CAPITAL CONTRIBUTION
“Non-capital contributions” are the ones that cannot be considered capital contributions, such as receivables arising from commitments to carry out work or provide services.
Such contributions must be specified in the Articles and are provided for definite or indefinite time.
03. GUARANTEE CONTRIBUTIONS
“Guarantee contributions” entail the assumption of liability towards third parties for the company’s debts up to the amount provided for in the articles of incorporation.
A partner providing a guarantee contribution is deemed as stating solemnly that he/she shall make every effort to be in a position, at all times, to pay the company’s liabilities up to an agreed amount.
The value of each guarantee contribution shall be stipulated in the Articles and may not exceed seventy five per cent (75%) of the aggregate amount of liability.