Private Company (PC)
According to the law 4072/2012 (articles 43 to 120) a new corporate form, the Private Company, was introduced in our country, which intends to serve the needs of small and medium enterprises, with the characteristics of simplicity, speed, low cost and especially the great flexibility.
The Private Company (PC) owned to capital companies, holds the particular feature and innovation that the shareholding is disconnected from the company’s capital.
Main characteristics of Private Company:
The capital of the company is determined by the partners without limitation and can be even zero (art 11§1 L.4155/2013). The partners involved in the company with capital, non capital or guarantee contributions, without being necessary to the PC the existence of all the three types of contributions. Capital contributions are contributions in cash or in kind, non capital contributions consist of labor or work, while guarantee contributions consist in ownership by the partner against all corporate lenders to a certain amount. The company is founded mainly by private document (except where the law requires the drafting of a notarial document) between two or more individuals or legal persons, which shall be recorded and published in the General Commercial Registry. The company can be formed by a single person (Single Member Private Company), so in this case subjected to publicity is also the name of the sole member. The statute of the company must contain the personal information of members, the corporate name, the registered office of the company, the purpose (commercial or non- sufficient is to be fair), the contributions and kind contributions of partners, the number of shares, the duration of the company and the administration and representation. Apart from the mandatory content, the statute of PC may also include other specific agreements between partners. The management and representation of the company can be assigned to a partner or a third party, while to the compulsory social security institution is subjected only the manager or the partner of Single Member Private Company.
ATHANASIOS I. PAPATHANASIOU, LAWYER
STELLA SOUMBOUROU, LAWYER