Egypt.. Presidential directives to establish one-person companies

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"The capital of these companies is owned by one person, and he is not asked about their obligations except within the limits allotted capital It shall take a name of its own that derives from its purposes or from the name of its founder, and its name must be followed by what indicates that it is a one-person company with limited liability, and it shall be placed on its head office, its branches, and in all its correspondences." According to the economist Ahmed Abu Ali.

And Abu Ali continued in his interview with the site "Sky News Arabia": "Egyptian government It has been working recently to encourage investment in general in order to improve its position and competitiveness The Egyptian economywhich appeared in the decision President Sisi Encouraging the establishment of individual companies".

virtual companies

The president decided Sisi That companies be established by notification digitally through a platform established for this purpose, in the context of removing all obstacles for start-ups and entrepreneurs, and allowing the opening of virtual companies without being bound by the necessity of having a physical headquarters, with the aim of saving expenses and facilitating those companies.

Encouraging Egyptian youth

The economist emphasized: "This decision will encourage young people to establish their own projects in the form of an individual company, which is a major economic turning point that will contribute significantly during the coming period to stimulating entrepreneurship and supporting the small and medium enterprises sector.".

He continued: "One natural person undertakes the establishment of the sole proprietorship, and according to Egyptian law, he is considered a merchant, and the minimum amount for establishing a sole proprietorship in Egypt is 100,000 Egyptian pounds, and the full amount is paid upon the establishment of the company.".

Egyptian law

and required Egyptian law The person who wants to engage in trade must be a fully qualified person who has reached the age of twenty-one, and it is also possible to increase the capital of the individual company in one or more installments, and this is done by issuing new shares or transferring the reserve money into shares.

The economist added that: "The contract of the founder of a one-person company is required that this contract not result in damages to the company or mix between his financial liability and the company’s financial liability, and that the contract price does not exceed the prevailing market prices at the time of its conclusion or the fair value in the absence of a market price, and that the contract does not result in tax avoidance".

of great economic importance

And about the economic importance of these companies, Abu Ali indicated in his interview with the website "Sky News Arabia" until "It has a great benefit in integrating a large part of the informal economy into the formal economy, and thus the government will be able to know the volume of liquidity in the country, in addition to including them in the tax and insurance system in Egypt.".

One person companies are prohibited from carrying out a number of businesses, including dividing the company’s capital in the form of tradable shares, or borrowing by issuing tradable securities, or practicing insurance or banking, saving or receiving deposits, or investing money for the account of others.

global goals

Abu Ali explained that "The establishment of the new single-person company system has several objectives, the beginning of which are to improve Egypt’s position in international reports related to the investment climate, in addition to compatibility with global developments in the investment and corporate sector, providing a favorable and attractive environment for it, improving services provided to citizens, improving individuals’ incomes and providing new job opportunities through Expanding the work of the private sector".

He continued: "The new system in Egypt aims to encourage small and medium enterprises by enabling the small investor to establish a company on his own and to remove the existing obstacles, which increases investment opportunities, especially since the amendments stipulate adding one-person companies to the law on joint stock companies, companies limited by shares and companies with responsibility Ltd.".

The economist emphasized: "If any of the major companies decides to establish a branch in Egypt, they will not face the dilemma of searching for partners, and this idea will be a great motive to transfer the informal sector to a formal sector, which is part of the support of the small investor".

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“The capital of these companies is owned by one person, and he is not asked about their obligations except within the limits.” allotted capital It has to take a name of its own that derives from its purposes or from the name of its founder, and its name must be followed by what indicates that it is a one-person company with limited liability, and it should be placed on its head office, its branches, and in all its correspondences,” says economist Ahmed Abu Ali.

In his interview with Sky News Arabia, Abu Ali continued:Egyptian government It has been working recently to encourage investment in general in order to improve its position and competitiveness The Egyptian economywhich appeared in the decision President Sisi encouraging the establishment of individual companies.

virtual companies

The president decided Sisi That companies be established by notification digitally through a platform established for this purpose, in the context of removing all obstacles for start-ups and entrepreneurs, and allowing the opening of virtual companies without being bound by the necessity of having a physical headquarters, with the aim of saving expenses and facilitating those companies.

Encouraging Egyptian youth

The economic expert stressed: “This decision will encourage young people to establish their own projects in the form of an individual company, which is a major economic turning point that will contribute significantly during the coming period to stimulating entrepreneurship and supporting the small and medium enterprises sector.”

He continued: “One natural person undertakes the establishment of the sole proprietorship, and it is considered, according to Egyptian law, a merchant, and the minimum amount for establishing a sole proprietorship in Egypt is 100,000 Egyptian pounds, and the full amount is paid upon the establishment of the company.”

Egyptian law

and required Egyptian law The person who wants to engage in trade must be a fully qualified person who has reached the age of twenty-one, and it is also possible to increase the capital of the individual company in one or more installments, and this is done by issuing new shares or transferring the reserve money into shares.

And the economic expert added that: “It is stipulated for the contract of the founder of a one-person company that this contract does not result in damages to the company or confusion between his financial liability and the company’s financial liability, and that the contract price does not exceed the prevailing market prices at the time of its conclusion or the fair value in the absence of a market price, and that the contract price does not exceed the prevailing market prices at the time of its conclusion. The contract should avoid my tax.”

of great economic importance

Regarding the economic importance of these companies, Abu Ali indicated in his interview with “Sky News Arabia” that “they have a great benefit in integrating a large part of the informal economy into the formal economy, and thus the government will be able to know the volume of liquidity in the country, in addition to including them in the system Taxes and Insurances in Egypt.

One person companies are prohibited from carrying out a number of businesses, including dividing the company’s capital in the form of tradable shares, or borrowing by issuing tradable securities, or practicing insurance or banking, saving or receiving deposits, or investing money for the account of others.

global goals

Abu Ali explained that “establishing the new one-person company system has several goals, the beginning of which are improving Egypt’s position in international reports related to the investment climate, in addition to compatibility with global developments in the investment and corporate sector, providing a favorable and attractive climate for it, improving services provided to citizens, improving individuals’ incomes and providing New job opportunities by expanding the work of the private sector.

He added, “The new system in Egypt aims to encourage small and medium enterprises by enabling the small investor to establish a company on his own and to remove existing obstacles, which increases investment opportunities, especially since the amendments stipulate adding one-person companies to the law on joint stock companies and companies recommended by shares. and limited liability companies.

The economic expert stressed: “If any of the major companies decide to establish a branch in Egypt, they will not face the dilemma of searching for partners, and this idea will be a great motive to transfer the informal sector to an official sector, which is part of the support of the small investor.”

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