Company Foundation

Company Foundation

When you start thinking about Starting a company, and before you take any action, you should determine the legal form of your company. We will try to simplify the forms and types of companies from which you can choose the right type for your project

1. Individual enterprises: Legal entities created and owned by one individual who earns all their profits , On the other hand, he is personally liable for all its obligations and debts with third parties.
2. Personnel companies: It is based on mutual trust between partners, and in it the personality of the partner is considered in the sense that it does not dissolve into the personality of the company. and the types of person’s companies:

1. Solidarity company: It is a company contracted by two or more (called joint partners) to do business. The liability of the partners therein shall be unlimited and they shall be personally and jointly responsible for the debts of the company.
2. Simple partnership companies: A simple partnership company consists of two types of partners:

• General partners have the same characteristics as the general partners in a solidarity company, where personal and joint liability and the acquisition of the status of a trader as soon as the company convenes or joins it, and the company address is formed from the names of these partners.
• Partners are responsible for the company's debts to the extent of their share (their own funds are not returned to pay off the company's debts), and they do not acquire the status of a trader and do not participate in the work of the external management of the company.
• A joint venture company: it depends on its formation on concealment, whose existence is known to the legal entity other than the partners only. It is an agreement between two or more to carry out a commercial business or more that one of them performs in his own name with the division of profits and losses between them according to what they agree upon.

3. Fund companies: partners in money companies, whose funds remain independent of the company's funds, and the partner's personal funds are not guarantors of the company's debts, and types of money companies:

1. Joint Stock Companies: The joint-stock company is the largest type of capital company, and its capital is divided into shares of equal value. Each partner (shareholder) has a certain number of shares according to his share in the capital, and the shareholder is not asked about the company's debts except within the limits of his share of the shares.
2. Partnerships limited by shares: A partnership limited by shares consists of two classes of partners:

A-) Guarantor partners: their number is not less than two, and their private funds are considered a guarantor for the company's debts, obligations, and their shares are not sellable, and they are only responsible for managing the company.

B-) Joint partners: their number shall not be less than three, and each partner of them shall be responsible for the amount of shares he owns for the company's debts and obligations. Their personal funds are not a guarantor of the company's debts, and they are not permitted to interfere in the management of the company.

3. Limited Liability Companies: It is formed between two or more partners, who are responsible for the debts of the company to the extent of their shares in the capital and are not responsible for the debts of the company. Their personal funds are not returned and they are not a guarantor of the company's debts except within the limits of the company's capital.
4. One-person company: It is a company whose capital is fully owned by one person, whether it is a person (natural or legal). The founder of the company is not asked about its obligations except within the limits of the company’s capital.