A joint stock company is a company in which the capital is divided into negotiable shares, and the partner is only requested to the extent of his share in the capital, and before approaching the procedures for creating a company by actions in Egypt, we will explain its most important advantages and disadvantages so that the vision becomes clear for all who want to implement it.
Benefits of corporations
- The enormity of the capital, which allows it to engage in major projects.
- Its capital is the guarantee of the creditors.
- Divide the capital into shares of equal value and small size to facilitate their trading in the financial markets.
- The liability of the partners is limited to the shares they hold in the company.
- The business is not affected by the death or bankruptcy of the partner.
- The company is not affected by the change in the market value of its shares.
Disadvantages of corporations
- Its incorporation costs are high compared to other trading companies.
- Deposit an amount between 10% and 25% of the equity value in any of the banks approved by the Central Bank of Egypt.
- The shares are sold through brokerage firms.
Procedures for creating a joint-stock company
A joint-stock company is established through the headquarters of the General Authority of Investments or through the website of the Ministry of Investment, and then complete the application for the establishment of joint-stock companies with the name of the company and its domain of specialization clarified, Here is a list of the most important papers and documents necessary for the creation of the company.إقرأ أيضا:حفظ ملف افضل صيغة إتفاق مكتوب بيع تنازل عن مكتب محامى 2019
- In the event that the company is incorporated through an agent, copies of the authorizations of the founders (their number must not be less than three) must be submitted with the original journal.
- A copy of the national identity card for Egyptians and a copy of the passport for foreigners.
- In the event that one of the founders is a foreigner, a security investigation form is required.
- A copy of the initial contract of the company and the articles of association on which it was incorporated.
- Approval of the competent authorities on the activity of the company.
- Present an unambiguous certificate (a certificate issued by the Trade Register Authority indicating that the name of the trading company is not confused with other companies).
- A certificate attesting that all of the company’s subscription procedures have been completed.
- Present a certificate from one of the banks approved by the Central Bank of Egypt indicating that at least 10% of the capital has been deposited and completed to 25% in three months and to 100% in five years, taking into account the activities that the law provides for the practice of a minimum value of paid-up capital.
- In case the founder of the company or one of the members of the board of directors is a civil servant or works in one of the governmental sectors, the authorization must be obtained from the competent authority.
- A certificate attesting that the securities of the joint stock company have been deposited with the central deposit and registration company.
- Approval of the chartered accountant to be appointed as the chartered accountant of the company.
- A stamped copy of Karnier, the company’s legal adviser (the degree of his Bar registration should not be less than one appeal).
- Fill in the data of business start up application form and hand in this form for benefit of enterprises to send to Emiri printing presses to be published in the business newspaper, then go to Emiri printing presses for pay the prescribed publication fee.
- After having prepared the documents necessary for the constitution, the establishment lawyer within the investment authority which is affiliated to him is invited to draft the articles of association, provided that this is specified. There is the following:
– Board of directors.إقرأ أيضا:لماذا نشعر بالخمول و النعاس مفاجئ في وقت الظهيرة؟
– The number of founders and their agencies.
– The percentage of each partner in the company and the number of shares to be held.
– Powers of the Board of Directors and appointment of its Chairman and Chief Executive Officer.
– Partner phone numbers.
- At the end of the drafting of the contract, it will be reviewed to ensure the accuracy of the data, then signed.
- Go to the Treasury to pay the incorporation fees.
- Cap to continue the incorporation.
- Go to real estate month to document the memorandum of association.
- Receive the certificate of incorporation of the company from the lawyer of incorporation and receive the investment journal, the tax card and the registration number in the commercial register.
Read alsoTypes of companies under Egyptian law
In our article, we have explained the procedures for setting up joint stock companies in Egypt, highlighting their most important advantages and disadvantages.إقرأ أيضا:Style and how to increase the decision of maintenance of the young in legal and legal bond?
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