Recently, a draft bill regarding the establishment of a new company form, “Private Capital Company” was placed under public consultation until 07.12.2011. The aim is to simplify the procedures for establishing and operating companies with limited liability of their shareholders, so as for this new company form to meet the needs of the Greek entrepreneurship and the needs of the small – medium undertakings.
The main features of the Private Capital Company are the following:
• capital stock commercial company, with legal personality,
• limited liability of shareholders,
• possibility of single partnership,
• with definite duration,
• registered office in Greece, without state oversight,
• wide variety of possible statutory configurations,
• involvement of a notary only in cases of property contribution,
• contribution of capital is not a requirement for the participation in the above corporate form. The shareholder may contribute his work or make contributions in kind. The shareholder shall acquire shares based on its contribution according to the above, even if such contribution is not a capital contribution.
• registration with the General Commercial Registry, establishment by the One-Stop Services of the above Registry, in order such company to operate sufficiently in an international environment,
• capital contribution of one (1) euro.
The comments, outlined in the consultation, are of significant interest. Indicatively, it is proposed that the shareholders are exempted from the obligation of mandatory registration with the respective Social Security Organization (Greek initials “OAEE”) as well as from the payment of the attributed insurance premiums. Instead, it is proposed that such premiums should be determined according to the company’s revenue. Moreover, an objection was expressed about the name of the new corporate form and in particular about the word ‘Capital’, as it is not necessary for someone’s participation in this type of company to contribute capital. Therefore, the term “Private Holding Company” has been proposed as more relevant.