What is meant by establishing companies?
Establishing a company is the legal framework that enables the creation of an entity that will engage in commercial or investment activities, starting with choosing the appropriate legal form, preparing documents and contracts, and completing the necessary procedures and registrations as required by law.
Choosing the legal form for the company is one of the most important decisions that must be made before establishment, as it is related to the nature of responsibility, the number of partners, management, capital shares, and other issues.
The legal environment in Egypt has various forms for companies and entities, and the General Authority for Investment clarifies the legal frameworks and procedures for establishing several of these forms.
What are the types of companies in Egypt?
Firstly: The limited liability company
It is one of the common legal forms for projects, characterized by the fact that the partners’ responsibilities are limited to the extent of their shares in the company’s capital according to the law.
GAFI clarifies that the limited liability company consists of at least two partners, and the number of partners in it cannot exceed 50, according to the general rules mentioned on the authority’s website.
Secondly: The joint-stock company
It operates on a capital divided into shares and is subject to the provisions of the companies law and its regulations.
Thirdly: The partnership company
It consists of individual partners, and the personal identity and trust between the partners are essential elements in it, while the nature of responsibility is determined by law concerning the partners.
Fourthly: The simple partnership company
It consists of individual partners, and includes general partners and limited partners, according to the established rules for this legal form.
Fifthly: The shareholding partnership company
It is one of the types regulated by the Companies Law, differing in its structure and the nature of partners and capital from other forms.
How to choose the appropriate type of company?
There is no one legal form suitable for all projects.
Choosing the company should depend on several factors, including:
– The nature of the activity.
– The number of partners.
– The size of the investment.
– The nature of the partners’ responsibility.
– The management method.
– The nature of financing.
– The possibility of attracting new investors.
– Activity requirements and priorities.
It is advisable to obtain legal consultation before starting the establishment procedures.
The role of Al-Abdul Mohsen in establishing companies
Al-Abdul Mohsen provides comprehensive legal services for company establishment, starting from studying the nature of the project and determining the appropriate legal structure, then preparing and reviewing the necessary establishment documents and contracts, and monitoring the required legal procedures and registrations.
Our services depend on the nature of the company and the activity:
– Legal consultations before establishment.
– Choosing the appropriate legal form.
– Preparing and reviewing the establishment contracts.
– Monitoring the establishment procedures before the specialized authorities.
– Reviewing the legal documents.
– Providing consultations related to partners and management.
– Assisting in organizing the relationship between partners.
– Legal consultations related to activities after establishment.
The official authorities in Egypt offer company establishment services through the General Authority for Investment, and the official framework includes models for various legal forms such as partnerships, simple companies, limited liability companies, and joint stock companies.
Start establishing your company on a solid legal basis.
Al-Abdul Mohsen for legal consultation and legal advice
Experience of more than 30 years.
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