All you need to know about the establishment of a sole proprietorship and it is called (a one-person company “limited liability”) subject to Law 159 of 1981 and updated by Law 14 of 2018
Steps for establishing a one-person company.
One-person company incorporation papers.
General conditions indispensable in the establishment of a one-person company.
The dream of establishing an individual company “one person” is a dream that many young people may have in their prime, independence with a job that distinguishes you and distance from the well-known routine work.
Sole Proprietorship “One Person” is defined by law as a company owned by one individual only and for which he is fully responsible, but its financial liability is independent of the liability of his personal money. Limited or contribution to the entry of new partners, and it is completely different from the “single establishment” that follows the companies of persons, in which the owner bears all losses and in his personal money and obtains its profits as well, and that the sole proprietorship may not be converted into a company.
In this article, we will learn about the steps for establishing a one-person company, the required papers and the conditions that are indispensable when establishing a sole proprietorship
First: Steps for establishing a one-person company
The establishment of this company is considered one of the easiest and fastest types of companies to establish, unlike other companies, such as establishing a joint stock company
Which may require many steps, necessary papers and many procedures.
Always and forever, the Egyptian government is constantly amending the investment law to attract the largest number of foreign investors and also to encourage young people to establish individual companies in Egypt that are similar to individual companies in the countries of the world. (Finance Companies Law).
Second: The documents required when establishing a one-person company
- An original of the power of attorney (if the incorporation is done through an accounting office or otherwise), provided that the power of attorney mentions the establishment of companies
- Copies of the agent’s valid ID card
- A copy of the passport in the case of a foreigner
- Identification form of the foreign investor as a document (security inquiry)
- Pre-approval of the competent authority when establishing a sole proprietorship, if any of the company’s purposes requires obtaining special approval
General conditions that are indispensable for the establishment of a one-person company
Egyptian law stipulates that a person wishing to establish a single person company or sole proprietorship must be a fully qualified adult and over the age of twenty-one.
A natural person establishes a single person company or sole proprietorship and becomes a merchant under Egyptian law.
The law allows for an increase or decrease in the capital of a one-person company, provided that it is not less than 50,000 Egyptian pounds, which is deposited in the bank before incorporation according to a bank certificate, and it is withdrawn after entering the commercial registry. The establishment has no minimum and is not deposited with the bank.