Many NGOs adopt the legal form of an AMKE, but not every NGO is an AMKE, just as not every AMKE is an NGO.

NGOs, for which a legislative framework is now being promoted in Greece, are a form of organisation that emphasises their autonomy from the state and, in theory, have a strong focus on social benefit (advocacy for the rights of minorities, excluded groups, social care, environmental protection, etc.).

In general, AMKEs and KOINSEPs can be adopted as legal forms by a social enterprise.

AMKEs are preferable when the social purpose outweighs the economic purpose (see: smaller commercial activity), the number of partners is small and stable and does not change often, the unlimited liability of the partners is not an issue, the realisation and distribution of any profits are not of interest, and the explicit commitment to the democratic management of the company is not of interest. The partners of an AMKE may be remunerated for specific work they provide, but they cannot take a share of the profits by virtue of their capacity as partners.

KOINSEPs are preferable when the simultaneous pursuit of a social and an economic purpose is envisaged (greater integration into the market in securing income), activity in multiple economic activities is of interest, there is a commitment to the collective dimension, changes in the composition of members are permitted with relative ease, there is a commitment to democratic governance, and limited profit distribution to employees is of interest.

Both forms are social responsibility companies. According to the legislation, a social enterprise is defined by 4 economic and by 5 social criteria.

The ideal type of social enterprises

ECONOMIC CRITERIA SOCIAL CRITERIA

Continuous activity of goods production / provision of services Aim of benefit to the community / group

High degree of autonomy Collective dimension

Risk-taking Participation in decisions is not determined by capital contribution

Minimum paid work Participation (even users / customers)

Limited distribution of profits

KOINSEP – KOISPE: At a glance

The following may participate as members:

  • Public Employees
  • Unemployed persons
  • Pensioners
  • Persons with disabilities
  • Employees
  • Public bodies
  • Legal entities under public law
  • Legal entities under private law
  • Companies
  • Private entrepreneurs regardless of specialisation
  • Private individuals with debts
  • Private employees independent of specialisation
  • Associations
  • NGOs

Basic features and privileges:

  • They are eligible for most subsidy and funding programmes, domestic and European programmes
  • Concludes Programme Agreements with Central Administration and with Local Government Authorities on favourable terms
  • Receives grants from the Ministry of Labour, the Social Economy Fund and other funding institutions
  • Special taxation with reliefs
  • It is a private legal entity with limited liability of its members.

Without business duty levy

Without members' social security contributions

Promotes the concept of volunteerism.

They may manage the movable and immovable property of Local Government Authorities, public law legal entities and private law legal entities

SME: At a glance

The company starts up within up to 20 days

May obtain an exemption from insurance with EFKA due to its non-profit character. If it carries on economic activity beyond its purpose, then insurance with EFKA is compulsory.

A specific articles of association is required for the establishment of the Civil Non-Profit Company (AMKE), in which the purposes and activities, the duration of life, the registered office as well as the founding members will be described in detail (Our legal department undertakes the drafting of the articles of association, in accordance with your own data)

The Civil Non-Profit Company (AMKE) keeps Category B books up to an annual turnover of 1.5 million euros. Once it exceeds this, it is automatically entered in Category C books

The competent tax office (D.O.Y.) as well as GEMI will decide whether the legal entity is non-profit, in accordance with the purposes of the articles of association.

A specific registered office must be designated for the company, either by having a tenancy agreement or a grant of use from the place where you live or by the title deed if the property is in your possession.

Donations and subscriptions from registrations are not taxed. Other income, which has arisen from business activity, is taxed at 29% corporate tax, 100% tax prepayment, and VAT is also imposed.

The annual business duty levy is at 500 euros.