Many customers always ask this question and answer it as follows:
The law stipulated that the capital exported in the joint stock company was not less than Pound250,000 and the law did not set a cap on it.
Source capital may consist only of a cash share and may consist of a cash share and an in kind share, but this condition requires that the value of the in-kind share shall not exceed 75% of the value of the capital exported and that the cash share shall not be less than 25% of the value of the capital exported at a minimum. Upon the establishment of the company, shareholders shall pay at least 10% of the value of the capital exported and deposit shall be deposited with a bank account and a bank certificate of 15 Other capital value within three months from the date of incorporation and also deposited in the company’s account.
The remaining 75% of the value of the capital exported is paid within a maximum period of five years starting from the date of establishment of the company, which determines the value of the instalments and the dates of their payment is the Board of Directors.
If there is a material or moral in-kind share, it is required that it should not exceed 75% of the total capital, be paid in full and be evaluated by a report from a competent expert according to the type of quota and recalculated in the economic performance management of the General Investment Authority to issue a final report on the value of the quota.
For more in-depth details, refer to Alwafi’s book in corporate law in theory and practice
Dr. Mahmoud Mostafa Abdullah.
Consultant. Ola Mostafa Abdullah.