Sole proprietorship
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Sole proprietorship in Egypt

The Sole Proprietorship is a company the capital of which is fully owned by Sole proprietorship whether natural or legal in such a way that does not contradict the objective thereof. The founder of the company shall not be held accountable for its liabilities except within the limits of the capital allocated therefor

The main authority that governs establishing all types of companies in Egypt is the General Authority for Investment and Free Zones. One of the types of companies in Egypt under Law No. 159 of 1981, is the said company.


Sole proprietorship in Egypt

Introducing the Sole proprietorship Company is a new type of company in the Companies Law No. 159 of 1981 after making its last amendments in 2018; as by this type of company, the small investor becomes able to establish a company in Egypt, on his own, a company in a unique form of companies.


Sole proprietorship Company

Sole proprietorship Company is a company that is owned by a single person, whether natural or a legal entity, within the purposes that it’s established for, and the owner of the company shall be liable only for the company’s obligations unless within the allocated shared capital.


The one-person company needs only one partner or founder, so the opportunity to the small investors to own a company without the need to obtain a certain number of partners or shareholders. Since a one-person company is the owner-partner in which is liable for its share only by the amount of the company’s capital.

There is another advantage for the Sole proprietorship Company is that the decision is making within the company as the owner of a one-person company exercises all the powers granted to the board of directors and the powers of the ordinary and extraordinary general assembly, being the only partner.


Sole proprietorship Company

Establishment of a one-person company by one natural or legal entity only. Thereafter, any more partner in the company shall not be a one-person company.
The founder shall establish a company in Egypt by himself or by his representative by submitting an application to the Authority. Each company shall have its regulation including its name, purposes, the data of its founder, duration, and managing system, the address of its head office, branches, the amount of its capital, and the company liquidation. And any data mentioned by the Executive Regulations.


An approval from the prime minister or the competent minister is required if the founder of the company is a public law person.
Paid the company’s capital in full prior to the establishment of the company.
In case of the founder dealt with the capital to a natural or legal entity, it is a must to amend the company’s data and the commercial register within a period not exceeding three months from the date of the deal, in accordance with the procedures and rules specified by the Regulations. In all cases, the act shall not be effective against third parties except the date of registration in the commercial register.


Sole proprietorship Company

If you are interested in establishing a representative office and have business in Egypt, we can help you at AlZayat law firm. A full-service law firm that aims to provide our clients with distinctive quality services and innovative legal. We have professional business law legal consultants in practice areas including corporation business and we have a long list of incorporations established by us in Egypt and the Middle East.


alzayat international law firm is one of the few major law firms with a sophisticated worldwide Private Clients practice. Our unparalleled global resources allow us to provide one-stop, comprehensive service to meet all of our clients’ needs, wherever in the world their assets or family members may be. They also make us uniquely qualified to handle complex, multijurisdictional disputes, that is why our clients have selected us to handle some of the largest cases in this field, Our specialist are ranked in  The Legal 500  , hg.org  and  Global Law Expert  as best experts in this field.For any legal inquiries, please do not hesitate to contact us.For any further inquiries, please don’t hesitate to reach out to  contact us.