5. Types of Business Organisations:
5.3 Limited Liability Company (LCC)
Formation
- A minimum of two shareholders and a maximum of 50.
- No minimum Egyptian shareholding required to form LCC.
- Submission of a request application is needed to get permission.
- Once registered, LLC must maintain a Register of Partners in its head office, including the names, nationalities, address and occupations of the partners; the number of shares owned by each partner; the sum paid by each; and the assignment or transfer of shares and related relevant information.
- The name of the LLC must be related to the company’s activities. It may include the name of one or more of its partners and must include the words “Limited Liability Company”.
Capital- No minimum capital required. The capital is to be divided into equal shares, either in cash or in kind, and the value of each share must be at least EGP 100.
- Each partner/shareholder is liable to the extent of his shares’ value.
- No share certificates are issued.
Management- The management may be shared by one or more managers.
- The manager(s) may be appointed for a definite or indefinite term; however, this must be specified in the Memorandum of Association.
- The manager(s) shall have full authority to represent the LLC vis-a-vis third parties, unless such authority is limited or qualified by the Memorandum of Association.
- A partners’ resolution limiting the authority of the manager(s) will not be valid unless it is entered in the Commercial Register.
Activities - LLC may conduct a variety of business activities, with the exception of insurance, banking, savings, receiving deposits or investing funds on behalf of others.
Requirements
- 10% of the company’s net profit must be distributed to its employees, when the LLC’s share capital is EGP 250,000 or above (up to a maximum amount equivalent to the total annual payroll).
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