A SPV company refers to a special purpose vehicle or special purpose entity/company that is set up by a parent company with the purpose or isolating the parent company from certain financial risks associated with the investments made by the SPV company.
If you want to open a SPV company in Greece, you can find out the entire procedure and your obligations upon incorporation from our team of consultants, who can offer tax advice for this company type.
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What are the characteristics of the SPV company?
A SPV company defines a legal entity that is separate from the parent company which creates the SPV. The SPV is generally set up for a specific purpose (hence, its name) which can be a short-term one, such as a single investment in a certain project.
This is done so that the parent company, which is the main investor of the SPV, and also the main entity responsible for providing the necessary capital for the investment, can minimize the risks associated with the respective project (therefore, the SPV is a vehicle for securitization of assets).
Given that the company is incorporated as a separate legal entity, it will hold its own balance sheet, different than the one of the parent company, and it will also have its own assets and liabilities.
If you want to open a company in Greece as a SPV, you must observe the legislation in the field, which can also be detailed by our team of consultants. In the list below, we invite you to discover some of the key aspects of the securitization legislation in Greece:
- • the Greek securitization law is given by the Law 3156/2003;
- • additionally, investors who will start the process of company registration in Greece for a SPV company must also observe the rules of the Greek Law 4354/2015, regulating non-performing loans in the securitization market;
- • the Greek legislation also provides a legal framework for the types of assets that can be securitized – there is a special law which regulates the securitization of state receivables (the Law 2801/2000);
- • additionally, specific rules on securitization derive from the Greek Civil Code, Articles 513 and 455;
- • the EU legislation on securitization (Regulation (EU) 2017/2402 of the European Parliament and of the European Council of 12 December 2017) is implemented into the national law of Greece.
What types of assets can be used for securitization purposes in Greece?
A SPV company in Greece can invest specific types of assets, in accordance with the applicable legislation. In Greece, there are 2 main categories of securitization assets, namely trade receivables and real estate assets.
When setting up a company in Greece as a SPV, our specialists can provide in-depth details on the assets that can be included in the 2 categories.
Who are the parties involved in securitization in Greece?
Securitization is a complex procedure that involves many parties. In Greece, securitization is generally employed as a risk-minimizing solution by banking institutions, although other types of entities can also opt for a SPV company.
One of the main parties is the SPV company, which acts as entity that acquires the receivables and as the entity which issues the notes that secure the receivables. Another entity involved is the servicer of the receivables, which must be an entity that is approved by the National Bank of Greece.
Another party refers to the investors, who will purchase the notes issued for the receivables owned by the SPV company. In Greece, the maximum number of investors who can participate in this procedure is limited to 150.
There are other parties that must participate in the securitization procedure, and we invite you to contact our team of Greek company formation specialists, who can assist you throughout the entire registration procedure and who can also offer post-incorporation services, especially designed for the needs of a SPV company.