When launching a new business venture, choosing the right legal structure isn’t just a formality — it’s a strategic decision. It defines your level of liability, your tax obligations, and — most importantly — your access to funding opportunities.
Let’s clearly examine the differences between the most common legal forms in Greece: Private Company (IKE) vs Partnerships (OE – General / EE – Limited)
🔍 1. Legal Liability of Partners
| Legal Form | Legal Liability of Partners |
| ΙΚΕ | Limited liability: partners are not personally liable for company debts. |
| ΟΕ | Unlimited and joint liability: each partner is fully liable with their personal assets. |
| ΕΕ | General partner: unlimited liability. Limited partner: liability limited to their capital contribution. |
👉 If you value legal protection and professionalism, IKE clearly stands out.
💸 2. Taxation – What Will You Pay?
ΙΚΕ
- Corporate income tax: 22% on net profits
- Dividends: additional 5% withholding
- Tax prepayment: 80% for the next year
ΟΕ/ΕΕ
- With simplified accounting (single-entry):: 22%
- With double-entry books: taxed the same as IKE
- Tax prepayment: 55%.
📌 Conclusion: If your vision is long-term, IKE is more cost-effective. OE/EE offers simplicity in the short term.
🧾 3. Administrative & Accounting Obligations
| ΙΚΕ | Double-entry books, General Assembly records, GEMI publications, etc. |
| ΟΕ/ΕΕ | Simplified bookkeeping, fewer administrative tasks |
🏦 4. Access to Funding (ESPA – Development Law – RRF & more)
💥 Here’s the game-changer that many entrepreneurs overlook:
Most funding programs (e.g. ESPA, Development Law) require a capital-based company structure — meaning IKE or SA (AE).
| Program | Eligibility |
| ESPA 2021–2027 | ✅ Yes with IKE – ❌ Often no with OE/EE |
| Development Law | ✅ Yes with IKE – ❌ Not available for personal companies |
| InvestEU / RRF / Recovery Fund | ✅ Yes with IKE or SA only |
📣 Extra Tip: Most banks and investment funds also prefer IKE structures due to their formal nature, governance, and transparency.
💼 5. Practical Examples – What to Choose
| I am a… | Best Option.. |
| Freelancer or small family business | ΟΕ/ΕΕ |
| Startup, online business, consultant, growth-minded entrepreneur | ΙΚΕ |
| Business seeking grants (ESPA, Development Law) | ΙΚΕ |
| Business attracting investors or requiring structure & transparency | ΙΚΕ |
🧠 AFS Tip
There’s no “best” legal form — only the most appropriate depending on where you are now and where you want to go.
🔹 If your goal is growth, innovation, and access to funding, go with IKE. 🔹 If you prefer simplicity and limited administration without major ambitions, OE/EE will do.
📍 Book a Consultation with AFS
Our team will analyze your needs and guide you step-by-step through:
Company structure - Tax strategy - Access to grants and funding - Corporate compliance - Active monitoring for ESPA opportunities
📞 Talk to an expert today.
🔚 Final Note
IKE is the new default for modern businesses. OE/EE is the traditional path for those who want to keep things simple. But the future — and funding — speak the language of IKE.
Elina Karamanou CEO | Co-Founder | Business Consultant at AFS
