Establishing a Joint Stock Company in Egypt: Expert Assistance from Alzayat Law Firm –
Establishing a Joint Stock Company in Egypt According to the provisions of Law no.159 for the year, 1981 amended by law no. 3 for the year 1998, It could be also established according to investment Law no. 8 for the year 1997 taking into consideration the abolished tax exemptions related to this law, provided that the issued capital is at least LE 250,000 out of which 10% should be paid when establishing the company. The capital should be increased to reach 25% during a period of 3 months after obtaining the commercial registry, noting that the capital should reach 100% within 5 years.
Documents Required for Establishing a Joint Stock Company In Egypt.:
- Bank Certificate: A certificate of deposit indicating 10% of the company’s capital.
- Photocopies of Identification Cards or passports of founders or the company’s owner.
- Birth certificates for any minors involved.
- Power of Attorney: This should be issued from the company’s founders.
- Rent Contract: The original contract must be in the name of the new company and should be obtained after the companies have been finalized.
- Commercial Registration: This registration should have its date recorded in the real estate registry. This is necessary for obtaining the company’s tax card.
Establishing a Joint Stock Company In Egypt
Legal rules according to Law No. 159 for the year 1981:
- Issued Capital: The minimum limit is two hundred and fifty thousand Egyptian Pounds. Interestingly, foreigners can contribute up to 100%.
- Board of Directors: There should be at least three members. Notably, all board members can be foreigners.
- Membership Guarantee: Each member must have shares worth at least 5000 Egyptian Pounds.
- Experienced Members: Up to two board members might not meet the shareholding quorum but must bring valuable experience.
- Founders: A minimum of three individuals or entities is required. All individual founders must possess legal capacity, and entity founders should have distinct legal status.
- Share Value: Each share’s value ranges between 5 and 1000 Egyptian Pounds.
- Authorized capital can’t be more than ten times the issued capital.
- Paid-up capital must be at least 10% of the issued capital.
- Monetary shares should cover at least 25% of the issued capital.
- In-kind shares can’t exceed 75% of the issued capital.
- Company Name: It should reflect its purposes, and it cannot use the names of its partners.
- Minor Participation: Minors can join if they use their funds, but court permission is necessary.
- In-kind Capital Shares: A committee from the General Authority for Investment evaluates these.
- Public Subscription: If shares are offered to the public, the issued capital must be at least one million Egyptian Pounds.
- Bearer Shares: The articles of association can allow for bearer shares, up to 25% of total shares, but they must be fully paid.
Duration and Expenses:
Establishing the company typically takes between one to one and a half months. Lastly, the establishment expenses will vary based on the company’s capital, with specific fees detailed in the financial proposal.
Procedures for Establishing a Joint Stock Company:
- Contract Submission: Start by submitting the establishment division to be reviewed and completed with the Authority’s attorney.
- File Submission: Hand over the file to the designated person responsible for the company’s establishment. They will oversee:
- Assessment procedures
- Liaison with multiple bodies including:
- Lawyers Syndicate
- Capital Market Authority
- Registered Office
- Chambers of Commerce Union
- Commercial Registry
- Completion: Once all steps are followed, procedures conclude. Notably, the concerned party can then obtain the register at the commercial registry within just 2 working days.
About Alzayat Egypt’s First International Law Firm:
Alzayat International Law Firm In Egypt stands out as one of the few major law establishments boasting an intricate global Private Clients practice. Thanks to our unparalleled worldwide resources, we can provide comprehensive services, addressing all of our clients’ needs, no matter their global location. This vast reach positions us perfectly to handle intricate, multi-jurisdictional disputes. Consequently, many clients trust us with some of their most significant cases in this field. Our specialists have earned prestigious rankings in The Legal 500 , hg.org and Global Law Expert as leading experts. For any legal questions, we encourage you to get in touch without delay.
Alzayat Egypt’s First international Law Firm The Trusted Law Firm for Joint Stock Establishment in Egypt
Setting up 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 Alzayat Law firm In Egypt step in.
Proficient Advocates for Joint Stock Companies
Within Alzayat Top corporate lawyers in Egypt , we’ve nurtured a team of lawyers who are particularly adept at facilitating clients through the intricate maze of joint stock establishment in Egypt. Not only are they conversant with the legal mandates and intricacies, but they also persistently focus on making every joint stock initiative a triumphant one for our clientele.
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Choosing Alzayat means entrusting your legal needs to industry stalwarts. Our lawyers don’t just offer advice; they provide unparalleled guidance underpinned by a legacy of success. Recognizing the essence of transparent communication and cohesive collaboration, we often go the extra mile to sculpt a tailored legal approach that resonates with the unique requirements of each client.
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Seeking the crests of legal expertise for joint stock establishments in Egypt? Your search culminates at Alzayat. As we charter the legal waters, our primary aim is to simplify complexities, ensuring your venture’s success. Reach out to us today to explore the myriad ways we can assist you.