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Setting up a Limited company

Limited liability company

A limited liability company is a company with share capital and legal personality and is liable for its debts with the company assets. It is a flexible form of enterprise that blends elements of partnership and corporate structures. It is a legal form of company that provides limited liability to its owners, a hybrid business entity having certain characteristics of both a corporation and a partnership or sole proprietorship (depending on the number of partners). This form of enterprise may be convenient for small and medium size operations and is similar to the French Sarl or German GmbH. Although a business entity, it is a type of unincorporated association and not a corporation. The primary characteristic a limited liability company shares with a corporation is limited liability and the primary characteristic it shares with a partnership is the availability of pass-through income taxation. It is often more flexible than a corporation, and it is well-suited for companies with a single member limited liability signifies that the liability of partners is limited to the total amount of capital, i.e. in contrast to personal companies, the assets of a company are clearly distinguished from the assets of the partners and the company is liable for debts and obligations with its own assets and not with the partners’ personal assets. Setting up a Limited liability company does not imply that partners are always fully protected from personal liabilities since courts can and sometimes will pierce the corporate veil of corporations when some type of fraud or misrepresentation is involved. Pursuant to article 3 of Greek Law 3190/1955, a limited liability company is a trade company, even if its business scope is not related to trade. Nevertheless, some trade activities, such as banking, insurance, stock exchange, portfolio management, mutual funds management, leasing, promotion, implementation of high technology investments (only venture capital) and athletic activities are expressly excluded from the scope of limited liability companies.

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Societe Anonyme

A company limited by shares (SA) is a company with share capital and legal personality solely liable for its debts with the company assets. According to article 1 of Greek Law 2190/1920, a company limited by shares (SA) is a trade company, even if not a commercial enterprise i.e. its business scope is not related to trade. S.A. designates a particular type of corporation in various countries, mostly those employing the civil law. The concept is roughly equivalent to that of the public limited company in the UK. It can be differentiated from partnerships and private limited companies. S.A. is the abbreviation of Anonymi/Anonymos Eteria in Greek.

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