First: What are the types of companies under Egyptian law?
Types of companies in Egyptian law
Partnerships (Companies of Persons)
They include two main types: General Partnerships and Limited Partnerships.
A- General Partnership
Definition: It is a company formed by two or more partners who are jointly and severally liable, with unlimited liability, for the company’s debts.
Number of partners: Minimum of two partners.
Capital: There is no minimum capital requirement.
Legal framework: A general partnership is established based on a written contract that includes the company name, the partners’ names, and their respective shares.
Advantages:
First: Flexibility in decision-making.
Second: No complex requirements for establishment.
Disadvantages:
First: Unlimited liability of partners.
Second: Weak ability to attract large investments.
B- Limited Partnership
Definition: It is a company that consists of two types of partners: general partners who bear full liability, and limited partners whose liability is limited to the value of their shares.
Number of partners: At least two partners.
Capital: No minimum capital requirement.
Advantages:
First: Limited liability for limited partners.
Second: Flexibility in management.
Disadvantages:
First: Unlimited liability for general partners.
Second: Difficulty in attracting external investors.
Companies of Capital (Corporations)
They include the following types: joint stock companies, limited liability companies, and partnerships limited by shares.
A- Joint Stock Company
Definition: It is a company whose capital is divided into shares of equal value, and the liability of shareholders is limited to the value of their shares.
Number of shareholders: A minimum of three shareholders.
Capital: The minimum issued capital is 250,000 Egyptian pounds, of which 10% must be paid upon incorporation, and the capital must be increased to 25% within three months from the date of the commercial registration. The remaining capital must be completed to 100% within five years.
Legal framework: The company must be registered in the commercial register and the capital must be deposited in a bank.
