5. Types of Business Organisations:
5.4 Partnerships Company Limited by Shares
Formation
- According to Article 3 of the Commercial Companies Law, a Partnerships Company Limited by Shares is defined as “a company whose capital is composed of one or more shares owned by one or more joint partners, as well as from shares of equal value subscribed for by one or more shareholders whose shares are negotiable in the manner prescribed by law.”
- Must have at least two founding parties, one of which must be a joint partner (with unlimited liability).
- A permission should be taken from the appropriate authority through an application submitted by the founding member.
- If the company is incorporated under the Investment Law, it must follow a certain guideline to be included in its Memorandum of Association concerning the provisions.
Capital- The minimum share capital required to establish the company is EGP 250,000.
- The capital is divided into two categories: (1) shares owned by joint partners (unlimited liability), and (2) shares of equal value subscribed to by shareholders (limited liability subject to the value of their shares).
- No minimum Egyptian shareholding is required.
Management- The company is managed by one or more joint partners (partner manager(s)), where the name and responsibilities of such partner manager authority must be included in the Memorandum of Association.
- The company must have a Supervisory Board of at least three persons (not partner manager(s)) to supervise the acts of the manager(s).
Activities - It is not allowed to operate in the business of insurance, banking, or saving or investing funds on other people’s behalf.
Requirements
- Same requirements as the LCC.
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