The procedures for establishing companies in Egypt have become easier at present, especially with the issuance of the new Investment Law No. 72 of 2017. This law offers a combination of incentives, customs exemptions, and facilitation of procedures and required documents, along with various guarantees and other measures to protect investors.
A limited liability company (LLC) is a hybrid between partnerships and joint-stock companies, based on mutual trust among partners. Each partner is only liable for the company’s debts up to the amount of their share in the capital. Before discussing the procedures for establishing an LLC, we will first highlight its key characteristics and the essential information that must be included in the incorporation contract.
The main characteristics of a limited liability company (LLC)
- The company's capital consists of shares rather than stocks, so they cannot be traded on the stock exchange. The law does not specify a minimum capital requirement.
- The number of its members must be at least two and no more than fifty.
- The procedures for establishing and liquidating it are the simplest among other types of companies.
- Suitable for young people who want to set up a simple and inexpensive private project.
- The liability of the partners shall be within the limits of their shares in the capital, and no recourse shall be made to their own funds.
- The company is managed by whoever is selected from the partners, provided that his name is registered in the company's memorandum of association.
- Government employees cannot join the company.
- Partners can assign their shares by writing a contract signed by both the ceding partner and the new partner during the Extraordinary General Assembly.
The procedures for establishing limited liability companies in Egypt are summarized in the following points :
- The initial contract and the basic system
- A security information form, in the case of foreign partners or managers
- Obtaining a certificate of non-confusion of the trade name
- Opening a company bank account
- Company profile itinerary follow-up form
- Review documents to ensure that they are fulfilled
- Payment of the prescribed fees
- Following up the issuance of the establishment decision and handing over the assets of the papers to the founders ' agent
- Cashing the application for registration from the commercial register
- Issuance of the establishment decision
