Egypt offers enormous possibilities for businesses looking to grow with the established and developing economy of the country. Companies planning to expand globally can benefit from the developing economy of Egypt and can start a business in Egypt through Establish a Joint-Stock Company in Egypt. The joint stock company is typically established to help a business grow. These companies offer many advantages and providing the potential for growth due to increased capital infusion.
What is Joint Stock Company?
A joint-stock company is a business owned by its investors, with each investor owning a share of the company based on the amount that they’ve invested.
Each joint stock company share is transferable, and if the company is public, then its shares are marketed on registered stock exchanges. Private joint stock company shares can be transferred from one party to another party. However, the transfer is limited by agreement and family members.
Joint-stock companies are generally formed to enable a company to thrive. If only a few shareholders participated, the company wouldn’t be able to fund itself. But by banding together, the individuals make it possible to build a thriving business, with each shareholder then expecting to profit from the company’s success. Each member gives and each member takes.
In accordance with Article 2 of Law No. 159 of 1981, the Joint-Stock company whose capital is divided into equal value shares that can be traded in the manner specified in the law. The responsibility of the shareholder is limited to the performance of the value of the shares in which he subscribed. The company shall have a trade name derived from the purpose of its establishment and the trade name of the company may include a name or title for one or more of its founders, its shares may be offered for public subscription and may be listed on the Egyptian Stock Exchange and its shares shall be registered with the depository companies. And the central constraint.
Conditions for the establishment of joint stock companies in Egypt
Accordance to the Law 159 of 1981, Joint stock companies based in the Arab Republic of Egypt, there are conditions for establishing joint stock companies, which are as follows:
- The number of founders must not be less than three partners as a minimum when establishing joint stock companies in Egypt, and the number of partners may not be less than two in limited partnership companies by shares or in limited liability companies, otherwise the company becomes outside this law.
- All partners must write a memorandum of association of joint stock companies in Egypt, which includes all the responsibilities resulting from the establishment of the company, and the founders shall be jointly liable for what they acknowledged in the memorandum of association.
- Any decision that occurred between a joint stock company in Egypt and its founders shall not be adopted without the approval of the board of directors of joint stock companies or the general assembly of the company that was previously appointed by election between the partners and some of them.
- If the founders follow all the previous conditions, the approval of the application for a license to establish joint stock companies is guaranteed, either in the event of rejection of incorporation due to the fault of its founders or negligence of those conditions, each founder may recover the material amount paid in the purchase of his share of shares.
Establish a Joint-Stock Company in Egypt can be intricate and demanding. However, with proficient legal guidance, this venture can transform into a streamlined and fruitful endeavor. That’s precisely where the lawyers at “Consortio Law firm” step in.
We are proud at “Consortio Law Firm” that we have a selection of the best legal lawyers specialized in the law of incorporation of companies, the company formation lawyers in our office always do their best to provide diligent legal assistance, while providing the most accurate answers by providing legal advice in various corporate affairs, and our firm lawyers believe in supporting clients with the most important legal recommendations for establishing Joint-Stock companies, drafting their internal laws.
For further inquiries, contact us now via the phone number 002 01028806061 or send us a WhatsApp or email Info@consortiolawfirm.com.
