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Greece: Types Of Company

Mutual Funds and Portfolio Investment Companies

In 2004, Greece introduced rules for closed-end mutual fund companies in an effort to promote investment in emerging companies. Below are the most important

  • To take advantage of the regime a closed-end Mutual Fund investing in companies must have a combination of assets consisting of securities, company shares and cash and it must be established for a certain period of time that cannot exceed 15 years. The assets of the close-end Mutual Fund are divided into equal parts and belong to the unit holders (co-ownership).
  • The closed-end Mutual Fund invests exclusively in the shares of companies that have their registered seat in Greece and are not listed in the Stock Exchange and also in convertible and/or profit participating bonds of the above mentioned companies.
  • The close-end Mutual Fund can participate in the capital of listed companies only if such participation has taken place before the approval of the listing of the company and this participation is disposed of within 5 years following the date of the listing of the company.

The Manager of a closed-end Mutual Fund can be:

  1. A Corporation with share capital of at least EUR100,000 having as exclusive object the administration of closed-end mutual funds.
  2. A business that is licensed by the competent authorities of a member-state of the European Economic Area to manage similar venture capital vehicles.
  3. An Investment Company formed under Law No. 2396 of 1996.

The minimum assets of a closed-end Mutual Fund upon establishment must be EUR3 million and the minimum participation of each holder should not be less than EUR150,000.

The investment of the assets of the closed-end Mutual Fund is subject to restrictions.

The closed-end Mutual Fund is not subject to any kind of taxation. Any income the unit holders realize in their capacity as co-owners of the Fund's assets is subject to tax in their hands. The transfer or other transaction in the units is treated for tax purposes as a transfer/transaction on the related ownership on the fund's assets.

The contract for the formation and management of the closed-end Mutual Fund as well as the payment of the holders' participation are not subject to any kind of tax, fee, stamp duty, contribution, right or any other charge imposed by the State, or any other third party.



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