FOROCON S.A. maintains the profile of a trustworthy provider of high-quality services which ensure the sustainable development of our clients since its foundation in 1998.
In 1998, two economists, the late George Zervakis and the excellent Alexis Trochalakis, founded the accounting office. With years of hard work, they have won the trust of the local market by creating a valuable clientele.
They have established themselves as one of the most reliable companies offering a range of financial and technical services, with a unique and friendly customer service as a key point.
In 2018, Giorgos Zervakis’ daughter, Ariadni, succeeded him, bringing new life and an appetite for innovation to the office.
Our company with years of experience and international orientation, is committed to professional integrity and practices that promote business ethics.
FOROCON S.A. company provides specialized advice on tax, accounting and consulting services that concern both domestic and international customers.
Hundreds of individuals and companies from the fields of industry, craft, energy, investment, pharmaceutical manufacturing, shipping, charities and non-governmental organizations have entrusted their tax and accounting matters to our team.
Utilizing our methodicality and knowledge, we adapt to the constantly changing economic and tax environment. We use all technological means and are constantly updated in order to offer complete solutions to professionals and individuals.
Company founders, Mr.Ariadni Zervakis & Alexis Trochalakis and their reputable partners guarantee for professionalism, integrity, efficiency and confidentiality.
Accounting Services
FOROCON S.A.provides immediate, valid and integrated accounting services:
Accurate accounting and bookkeeping services, both in-house and outsourcing.
Supervision and cooperation with the accounting office of your company.
Alignment to the Greek Accounting Standards (Law 4308/13) according to the profile and the particular needs of your company.
Drawing of accounting statements based on the strong and solid knowledge of the current legislation.
Expert consulting on labor law issues.
Compatibility with the International Financial Reporting Standards (IFRS).
Undertaking of bureaucracy processes in connection with the public sector.
Organization and coordination of seminars by associated experts concerning accounting, tax and other relevant issues.
Tax Services
FOROCON S.A. draws an integrated tax plan, according to the particular profile of your business:
Tax support of your company based on the maximum permissible leverage of the current tax legislation.
Consulting through expert advice regarding tax issues, related to the specific-tailor made activity that your enterprise conducts.
Undertaking of all the processes required for the taxing on your real estate.
Arrangement of tax inspection and other relevant pending issues.
Establishment and support of domestic or foreign companies.
Change of the nature of your company (transformation, merger)
Maximum use of the tax projections of the investment legislation.
Unusual or peculiar tax issues concerning individuals.
Legal consulting services by expert attorneys, associated with our Company.
Consulting Services
FOROCON S.A. provides high level consulting services, which ensure the sustainability of your business:
Drawing of a reasonable and sustainable budget.
Frequent and continuous monitoring of the budget through the drawing of Profit and Loss Statements and a proposal of (budget) readjustment addressed to the Administration of your enterprise.
Integration and implementation of a Business Plan.
Projection and adjustment of liquidity.
Alignment to the Greek Accounting Standards (Law 4308/13) and International Financial Reporting Standards (IFRS).
Which form of business is right for me? The 9 types of companies in Greece.
It is a fact that companies are an important part of the business sector worldwide. This makes choosing the right type of company vital for any business, as this choice will determine the legal status of the business and the procedures required to set it up.
As in every country, in Greece the types of companies are not limited to just one. There are many, each with its own characteristics and way of taxation.
So if you are at the stage where you are thinking about starting your own business, in this article you will find what you need in order to make the choice that suits your needs.
The 9 Types of Companies in Greece
Company #1: IKE
IKE (Private Capital Company) is suitable for anyone who wants to start their own business. It is a legal entity that appeared in 2012, as a solution for those entrepreneurs who wanted flexibility and simplicity.
More specifically, it is a type where the shareholders have limited liability (ie their personal property is not involved in debts and obligations), while at the same time the contributions in the form of services, and not only the capital, are recognized as equal shares of shareholders. They require zero initial capital to set up, which makes them particularly attractive to new groups of people who do not have large capital to invest from the start.
The great advantage of IKEs is the flexibility and simplicity of their constitution. For this reason, they are one of the most popular types of companies in Greece, since they brought new perspectives to the Greek market.
Taxation: Profits are taxed at a rate of 22% and 5% on the distribution of its profits with a next year advance tax rate of 80% (40% for the first 3 years). This flat tax rate contributes to simplicity as there is no need to calculate the tax through a scale.
Company #2: Sole Proprietorship
One of the oldest types of companies in our country! These are one-person companies and are often small or family businesses. So this person (who is both owner and manager) has unlimited responsibility for all the decisions of the business.
Sole Proprietorships have low operating costs and serve entrepreneurs who are active alone, but also have the risk of unlimited liability that the individual founder must assume.
Taxation: In sole proprietorships we have a tax scale, as profits are taxed on a staggered basis according to the following categories:
9% for profits from 1 to 10,000 euros.
22% for profits from 10,001 to 20,000 euros.
28% for profits from 20,001 to 30,000 euros
36% for profits from 30,001 to 40,000 euros.
44% for profits over 40,001 euros.
Company #3: Limited Company
The Limited Company (SA) is one of the most common types of companies in Greece and is mainly suited to larger companies, due to the minimum initial capital of €25,000. This amount is paid in full upon incorporation, which is often not affordable for smaller companies.
In addition, they are characterized by their long lifespan (often indefinite) and the existence of two instruments is mandatory:
The general meeting of shareholders
The Board of Directors (BoD)
Therefore, running a SA has stricter frameworks and bureaucracy, so it might not be the right choice for a business just starting out.
Taxation: Profits are taxed at a rate of 22% and 5% on the distribution of profits, with an advance tax rate of 40% for the first 3 years.
Company #4: Ltd
The LLC (Limited Liability Company) is another company where the shareholders have limited liability. In relation to SAs, it maintains a flexibility and simplicity, such as the free determination of the amount of the capital and the limited liability of the partners.
Taxation: Profits in LLCs are taxed at a rate of 22% and 5% in the distribution of profits, with an advance tax rate for the first 3 years of 40%
Company #5: OE
The OE (General Partnership) is a type of company that is often found in Greece. It concerns a personal business and for its establishment, 2 partners are required, who will have the same and indeed unlimited liability. The OE is the only type of company where all partners are liable alongside the legal entity for the company’s debts.
In general, OE is recommended for companies that wish to have a high credit rating, due to the unlimited liability of the shareholders.
Taxation: And in OEs, profits are taxed at a rate of 22% and advance tax for the first 3 years at a rate of 40%.
Company #6: EU
The EE (Limited Partnership) is also a personal company, where 2 partners are needed for its formation as in the OE, with the difference that one partner will be a General Partner and the other Heterorrythmos. The General partner is liable alongside the legal entity for the corporate debts and indeed with his personal property, while the Limited partner is liable up to the amount of his contribution.
In other words, one partner has unlimited liability, while the other has limited liability.
Taxation: As in OEs, EU profits are taxed at a rate of 22% and withholding tax for the first 3 years is 40%.
Company #7: AMKE
AMKE (Civil Non-Profit Company) is a legal entity whose purpose is non-profit, that is, the income should be aimed at achieving the objectives of the statute. An AMKE can be founded by at least two people and the articles of association are drawn up in a private document, which is published in the court of first instance.
In a few words, AMKEs do not have a commercial character, but mainly pursue scientific, educational, sports or cultural purposes.
Taxation: An AMKE is taxed at 22%, with an advance tax rate for the following year equal to 100% and company members are not required to have insurance.
Company #8: COINSEP
COINSEP (Social Cooperative Enterprise) refers to a partnership of people whose goal is both profit and the interest of society as a whole.
It appeared with Law 4019/2011, which sets the legislative framework for the social and solidarity economy, as a form of alternative organization of economic activities.
Both natural and legal persons can participate in a COINSEP, but in the second case they cannot exceed ⅓ of the share composition.
Depending on their specific purpose, COINSEPs are distinguished into:
1) Integration COINSEP, which are divided into 2 subcategories:
COINSEP for the Integration of Vulnerable Groups, which seek the inclusion in economic and social life of people who belong to vulnerable social groups (at least 30% of the company’s members and employees must belong to these groups).
COINSEP for the Integration of Special Groups, which seek the integration into the economic and social life of people who belong to special population groups.
2) COINSEP of Collective and Social Benefit, which develop sustainable development activities (green economy) or provide social services of general interest.
For the establishment of a COINSEP of Collective and Social Benefit, the participation in it and the signature of its statutes are required by at least 5 natural or legal persons, and by at least 7 if it is an Integration COINSEP.
The profits of a COINSEP are allocated as follows:
5% for the formation of the regular reserve
35% is distributed to employees, unless ⅔ of the members decide to allocate all or part of the percentage to new jobs
Company #9: Foreign Branch
A foreign branch is considered when a foreign company wishes to expand its activities in Greece, through a branch. For its establishment, at least one legal representative of the company is required, who resides in Greece and is not required to be insured with the EFKA, whether it concerns self-employed or salaried activity.
The legal representative is responsible for paying the tax, unless the branch is in the form of a SA, where only a power of attorney for the Greek tax authorities will be needed. A branch is not a separate legal entity from the parent company, as it is part of it, so it will have the same legal form as it.
Some important elements of the foreign branch are:
Zero EFKA contributions in Greece for the owners and the legal representative
Exemption from the distribution of dividends in Greece and the possibility of repatriating funds to the parent company abroad
Routing of intra-Community transactions through the company’s headquarters abroad, but also the branch in Greece with exemption from VAT
Greek tax identification number that normally falls under the DOU
Summarizing…
Each type of company in Greece has its own characteristics and a separate way of taxation, although in many cases it is the same. Undoubtedly, before starting your own company you should know what applies to each format so that you can make the right decision.
So if you want to build your business safely, trust Forocon’s many years of experience and don’t hesitate to contact us!
Contact Us Address: El. Venizelou 116, Heraklion Limen Chersonisos, 70014
Telephone: +30.28970.25189, Email: [email protected]
FOROCON S.A. professionalism, integrity, efficiency and confidentiality
