Advantages of a Limited Liability Company (LLC)

Establishing a Limited Liability Company

This is the most important advantage: each partner's liability is limited to the value of their share in the company’s capital. This means personal assets of the partners are protected in the event of company debts, losses, or bankruptcy, and creditors cannot claim personal property.

Compared to other types of companies, the process of establishing an LLC in Egypt is simpler and more flexible.

• It features flexibility in the management structure, where management can be undertaken by one or more partners, or even by someone outside the partnership.

An LLC can be established with a minimum of two partners and a maximum of 50, providing flexibility in attracting investment and distributing capital.

Shares can be transferred easily among partners through a simple sales agreement. The company is not affected by the death or withdrawal of a partner, as the shares are transferred to the heirs.

Thanks to its legal structure and limited liability, an LLC is more attractive for new investments compared to sole proprietorships.

• Foreign investors can own 100% of an LLC in Egypt without requiring an Egyptian partner in most cases, encouraging foreign direct investment.

An LLC enjoys a legal existence independent of its partners, ensuring its continuity even in the event of a partner’s death or withdrawal, unlike sole proprietorships.

An LLC grants the project a legal identity, which enhances its credibility and trustworthiness with customers, suppliers, banks, and government authorities.

Due to its flexibility, relatively low capital requirements, and the absence of a minimum capital requirement, it is an excellent option for small and medium-sized enterprises and entrepreneurs.