The company must take commercial legal forms set by the law, otherwise
are declared invalid and these models have Originated in practical life and
some of them had found a long time ago, then the project was legalized
It is no doubt that the number of these legal forms of companies may come
in response to the requirements of economic life.
Commercial companies are divided into two major and distinct types:
First: individual companies called also quotas firms.
Second: Companies of funds also called equity firms. There is a third type besides
the mentioned. It carries the characteristics of each of the types previously and
called as companies with different nature because it's based on a personal account
from side and on the financial account on the other side, and my side overshadow
the other and everything will be showed in the right time.Thus, individual companies
are three types:
First : Partnership and Limited Partnership and joint venture.
Second: Funds companies:
These companies, on the contrary of the former type Does not rely on personal
accounts, which does not have any role in these companies, but mainly based
on raising the necessary capital to exploit the company's activity.Thus,
the financial account occupies first place in these companies.
The obvious model for these companies is Shareholding Company, mostly
Fund companies have huge projects, that need large amounts of capital and
a limited number of partners are unable to afford As in the case of individual
companies. These companies depend primarily on public subscribers.
The company's capital is divided Into shares of equal value and are usually
low value shares so that a large number of low-income persons can subscribe
Shareholders' liability is limited, only they interested in the value of
Third: companies with dual nature:
In addition to the two former types there is a third type of companies
based on personal account and the financial account together, It is
companies of double nature mediates between individual companies and
fund companies .Individual account may exceed in these companies, which
are closely resemble to individual companies or the financial account
exceeds and in this case resemble to companies funds.
These companies including two types:
I- LLCs. (Limited liability companies)
II- Second: companies limited by shares
We will talk about each type separately:
A-Limited liability companies
These companies are a relatively recent and entered the Egyptian
legislation for the first time by Law No. 26 of 1954, which Canceled by
Law 159 of 1981 and limited liability company is similar to individual
company in terms of number of partners, which should not be more
than fifty partners, who their shares are not for trading .
Their circulation is subject to certain restrictions, the most important of which
is the possibility to retrieve these shares to partners, And it may not
be established through public subscription. Finally it is not allowed to
issue shares or bonds for trading. This company is close to
fund companies in terms of the management system and its
founding, and identifying the responsibility of the partners, who
their shares can inherit.
B - companies limited by shares:
These companies consist of two types of partners:
Sleeping Partners, who are not liable , except for their own shares they provide.
These shares take the form of tradable shares, which do not differ from shares
in joint stock companies, And co-partners are similar to the general partners
in partnership companies and Limited companies. Hence they acquire trader status,
whose liabilities are absolute in all their money, and They manage the company.
Finally there are six types of commercial companies
2 - Limited Partnership.
3 - JSC. ( Joint stock companies)
4 - a company limited by shares.
5 –(LLC) the limited liability company.
These are the types of commercial companies in the Egyptian legislation .
Thus there are these six types. The formation of the company relating
to public order, and it does not allow for individuals to make new types of companies
only these six types and anything is considered null and void.