Capital in a closed joint-stock company is divided into equal-value shares that are tradable. The capital is referred to as the authorized capital, with a minimum requirement of 250,000 Egyptian pounds and no maximum limit.
During incorporation, 10% of the authorized capital must be paid, followed by an additional 15% within three months of incorporation.
The remaining amount should be paid within a maximum period of five years from the date of incorporation, with the value and timing determined by the company’s board of directors.
Shareholders must be notified at least 15 days before the due date. It is permissible for a portion of the capital to be in-kind (tangible or intangible), evaluated by specialized experts and reassessed by the General Authority for Investment through a dedicated committee.
The full value must be paid either during incorporation or when increasing the capital. According to the law, it is permissible for the company to have licensed capital, provided that it does not exceed ten times the issued capital.
For more in-depth details, please refer to the book “Al-Wafi in Corporate Law: Theoretical and Practical Aspects.”
Doctor/Mahmoud Mostafa Aballah
Doctor/Ola Mostafa Abdallah