Joint Liability Company

General regulations to incorporate a Joint Liability Company

• A company incorporated by two or more parties aims to trade, has an identified address to be its name, and partners are liable toward all its commitments
• The address consists of names of the joint partners or one of them and shall add the word (partners or partner) due to each case. Name of a different party who is not partner in the company should not be integrated in the address as it indicates misleading.
• The joint partner acquires the status of a merchant therefore it should be competent to do business by reaching 21 years old or 18 years old provided to obtain permission from the court.
• Minimum capital of Sole Corporations is L.E.300000, except services activities which fully operate inside Industrial Parks and urban cities where the minimum capital shall be L.E.30000.
• Foreigners can be partners (%100) – except activities limited to Egyptians.
• Partners in Joint Liability Company are liable to all commitments even if signed by only one partner and the signage should be with the address of the company.
• Each partner in Joint Liability Company is liable for company’s debt as if it was his/her own debt. Therefore, the responsibility of the partner is unlimited equals the shares owned and includes all his/her other money.
• Management of the company is the responsibility of the joint partners or to one of them, they may appoint an external manager in the Articles of Association.
• All partners are liable unlimitedly and jointly even if they all shall fulfill these commitments from their own private money or by one of them, due to the fact that others deal with this company based on its personal nature.
• All partners should be jointly liable in order to consider it a Joint Liability Company.