How to choose the right company type

How company types in Egypt differ in liability and number of partners, and how to choose the right one.

Choosing the company type is one of the first decisions in formation, because it defines your liability for the company's obligations, the number of partners and how the company is managed. Here are the main types available in Egypt.

Sole proprietorship

Owned and run by one person, whose liability for its obligations is unlimited. It suits small activities started by a single owner.

One-person company

A company owned by one person whose liability is limited to the capital allocated to it. It suits those who work alone but want to separate their personal finances from the company.

Limited liability company

Formed by two or more partners, each liable only up to their share of the capital. It is one of the most common types for small and medium companies.

General and limited partnerships

In a general partnership all partners are jointly liable for the company's obligations. A limited partnership combines general partners with limited partners whose liability is limited to their shares.

Joint stock company

Its capital is divided into shares. It suits large projects and companies planning to attract investors.

How to choose

  • The number of partners in your project
  • The level of liability you accept
  • Your capital and expansion plans
  • The nature of the activity and its licensing requirements

We help you choose the right type for your activity through our legal partner.

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