The Limited Liability Company (LLC) is the most common legal form for small and medium-sized businesses in Egypt. It offers a balance between flexibility and protection.
1. Protection of Personal Assets
The most significant advantage is "Limited Liability." If the company incurs debt or faces bankruptcy, the partners are only liable up to the value of their shares. Their personal assets (homes, cars, personal bank accounts) are protected.
2. Ease of Incorporation
Unlike Joint Stock Companies, LLCs do not require a minimum capital deposit at the bank during incorporation (unless the capital is very high). This reduces the initial cash flow burden on startups.
3. Management Flexibility
An LLC is managed by one or more managers who can be partners or external employees. There is no need for a complex Board of Directors, making decision-making faster.
4. Wide Business Scope
LLCs can engage in almost all commercial activities, except for insurance, banking, and receiving deposits, which are reserved for Joint Stock Companies.
If you are planning to start a business with partners, the LLC is likely your best option. Contact us to draft a solid partnership agreement that protects your rights.