What type of company can you start alone?
- If you are practicing a specific activity alone, even if it is freelancing or a small online business, you need to register a business in Egypt.
- That is the law in Egypt. This is a very important article for you in order to be able to save yourself a lot of legal hassle.
- However, what do you do if it’s just you? If you don’t have any partners? Can you operate alone?
- The answer is yes.
- Egyptian law has provided us with two types of companies for just one person: a sole proprietorship incorporation and a single member company.
- How are these two entities different?
- Which one is better for your business?
- To make this decision we’ve put all the details about each company below so you can make your choice. We have divided it all into the following: the liability you will incur, initial capital amount, and your company’s potential name.
- Keep scrolling until the end to find Hekouky’s legal advice for you.
single member company
Sole proprietorship incorporation
Limited liability, even if the company couldn’t pay off all its debts, the liability would not extend to the business owner’s personal finances.
This means your personal finances or assets will not be used to pay off the company’s debts.
Unlike its counterpart, the liability could extend to the owner’s personal assets and finances.
It shall not be less than 50,000 LE. This amount also needs to be deposited in a bank account only for a few days until the incorporation is completed.
The founder chooses the initial capital as she/he wants.
Part of the name chosen needs to include either the functions of the company or the founder’s name. Example:
– Ahmed Khair for real estate.
The founder’s name must be included in its name. In this case only Ahmed Khair for real estate would work from the previous example.
There is not one company type that’s one size fits all. The type of company you need to start entirely depends on what suits your business needs.
However, here are some initial questions to get you started?
- Do you plan on getting partners? If so the one person company suits your needs better because it can be transferred to an LLC more easily (and your new partners can be added)
- Do you have the capital at the moment to do a 50 000 LE deposit?
- How do you envision seeing the company in 5 years? What is it’s structure like?
Contact Hekouky to register your company hassle free.