Egypt has one of the longest histories of any country, tracing its heritage along the Nile Delta back to the 6th–4th millennia BCE. Today, the Egyptian economy's dynamic growth, geographical position, low labor costs, skilled workforce, and unique tourist potential make it a highly desirable investment opportunity.
One of the most popular business forms for small enterprises is a One-Person company. These companies are applied in many countries because of its limited liability restricted to the shared capital value, which protects investors from any risks.
Disclaimer: Be aware that this article is not a substitute for legal advice. Please always check official websites or seek legal advice before you take action.
What is a One-Person Company?
One-Person Company is a business structure wholly owned by a single person, whether natural or juristic, within its established purposes. The founder of the company is not liable for its obligations unless within the allocated shared capital.
Initially, one partner may establish this company and later on transformed into a one-partner company, with only one partner remaining. In general, the company is a contract that is concluded by two or more persons; however, as the name states, a one-person company consists of only one person.
The limited liability of the founder or owner means that they have specified part of the patrimony for the company's activity. Therefore, they shall be liable only to the extent of their shares in the company's capital. Any losses arising from the business shall not exceed the founder's funds.
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How to register a One-Person company in Egypt
To establish a One-Person company, you need to submit an application to the Authority. The One-Person company should have its internal regulation that includes: business name, purpose, founder's data, duration, how it's managed, the head office address, branches, the capital amount, the liquidation rules, and any other information as per the Executive Regulations. The company's capital should be paid in full upon the establishment of the company.
Required documents for establishing a one-person company are:
- A notarized power of attorney, legalized from the Egyptian consulate
- The business name
- Certificate from an authorized Egyptian bank that the capital of the company has been deposited in full
- An ID card or Passport copy
- The Certificate of the Auditor of the company
- A possession deed of the company headquarters or the lease contract of the same
The minimum capital of the One-Person company is EGP 50,000, and the founder of the company enjoys limited liability within the company's capital.
