OQ Law Firm provides a seamless and efficient service for individuals and entities looking to establish companies in Egypt using the advanced technology offered by the Egyptian government. Establishing companies through electronic means in Egypt refers to the process of creating and registering companies online with the advancement of technology, where the Egyptian government has implemented procedures to facilitate digital company registration. This enables entrepreneurs to establish their businesses easily and efficiently without the need for traditional paperwork. At OQ Law Firm, we assist our clients through these electronic procedures in establishing various types of companies using the government-provided online platform. Individuals and entities interested in establishing companies can submit all the necessary documents, such as business plans, articles of incorporation, and required licenses. The digital system allows users to track the progress of their applications and make any required modifications online, as the Egyptian government aims to simplify administrative procedures for e-company formation and provide more convenient options, saving time for individuals looking to start their businesses in Egypt.
-Whereas, it has become evident following the repeal of Investment Incentives Guarantees Law No. 8 of 1997 and the issuance of Investment Law No. 72 of 2017, along with the amendments made to the Companies Law No. 159 of 1981, that it is not easy for the average person to comprehend all of these laws related to company formation in Egypt, especially given the speed and abundance of legislations and procedures related to establishing companies in Egypt. – Therefore, one of the most important services it provides is the service of company formation in Egypt. And providing all legal services for these companies, from their establishment and registration to all legal matters related to these companies through their legal agency. It provides legal assistance to individuals, whether Egyptians, foreigners (foreign investors), or commercial entities, to establish companies and conduct their activities legally, helping them choose the appropriate legal form for their companies and their activities according to Egyptian law. We have extensive experience in establishing and registering companies in Egypt quickly, with the highest precision and efficiency.In addition, it provides a service for foreign companies to open branches in Egypt. And it is a highly relevant service to establishing companies in Egypt. As mentioned earlier, one of the most important factors for the success of establishing companies in Egypt is choosing the appropriate legal form for their activities and the size of their investments. Each type of these companies has some characteristics and features.We will discuss some of them below: Firstly: Financial companies :- You mentioned “financial companies.” These are companies that are based on a financial consideration, and the partner’s personality does not have an impact on them. The main focus is on the financial contribution of each partner. Therefore, the company is not affected by events such as the partner’s death, bankruptcy, or others. Forms of these companies include:- Joint Stock Companies (S.A.E): These are companies in which the capital is divided into equal and tradable shares, partners in these companies are not referred to as merchants, and they are only liable for the company’s debts up to the value of the shares they have contributed. Those who own shares can deal with them without affecting other shareholders.
- Mixed companies: These are companies that combine financial and personal consideration into one and include the following: A- Stock Recommendation Companies: Stock Recommendation Companies consist of two categories of partners: 1. General Partners: They are a minimum of two partners who are personally responsible for the company’s debts and obligations with their own funds.
- Limited Partnership: This is a business partnership formed by two or more individuals where there is a visible partner who interacts with third parties. The partnership is limited to the private relationship between the partners, and it is possible to prove the partnership among the partners through all means of evidence. It consists of two parties and is established for a specific purpose and to achieve common goals.
- A single-person company The Investment Law No. 72 of 2017 introduced a new form of sole proprietorship companies, with an initial minimum capital requirement of 5,000 Egyptian pounds. However, it was later amended to reduce the minimum capital requirement to 1,000 Egyptian pounds. This change was aimed at making it easier for individuals to establish and operate sole proprietorship companies, promoting entrepreneurship and small business development in Egypt.
- The limited liability of the owner of this company: In this case, the individual has allocated a portion of their financial liability for the activities of that company. Therefore, they are only responsible within the limits of their share in the company’s capital. This means that they have set aside a specific portion of their financial liability for investment in a particular business activity with a defined capital. If this project incurs losses, their personal assets are protected from the losses of this project.
- Company credit weakness Having a single owner with limited liability can indeed weaken the company’s creditworthiness. When dealing with such a company, creditors and other parties may have concerns about their ability to recover their rights in case of the company’s liquidation or insolvency. Therefore, it’s common for creditors or business partners dealing with a sole proprietorship to request personal guarantees to secure their interests.
- The ease of making decisions within the company In this case, the owner of the company exercises all the authority and is not restricted by the need to seek the opinion of others. This independence allows them to make decisions quickly and achieve results, which in turn reflects positively on profitability and benefits for the owner of the company. The owner feels the value of their efforts, care for the company, and the growth of their investments.
