A common question that many clients often ask is about the types of joint stock companies in Egypt. In response to this query, it is important to note that a joint stock company is one of the strongest forms of companies in Egypt, as stipulated by law which designates its capital as public funds. There are two main types of subscription for joint stock companies:
1-Public Subscription: This refers to the offering of shares on the stock exchange and is visible in the trading room.
2-Closed Subscription: It consists of at least three founders, whether natural persons or legal entities, whether Egyptian or foreign nationals. The minimum capital requirement is two hundred and fifty thousand Egyptian pounds. Ten percent of the capital is deposited upon establishment in an account under the company’s name during the incorporation process in one of the banks. Another 15% is paid within three months from the date of incorporation, and the remaining 75% is paid over five years in installments determined by the company’s board of directors.
Shareholders are only liable for the company’s debts up to the extent of their shares. The company is managed by a board of directors consisting of at least three individuals, whether shareholders or not, with no maximum limit.
The ordinary general meeting, composed of its shareholders, oversees and controls the management of this company. Extraordinary general assembly controls critical decisions of the company.
For further in-depth details, refer to “Al-Wafi Book on Company Law – Theoretical and Practical”.
Doctor/Mahmoud Mostafa Abdallah
Doctor/Ola Mostafa Abdalah