Egypt’s Minister of Investment and International Cooperation Sahar Nasr has signed on August 15 the regulatory framework for licensing single-shareholder companies, under the framework of amending the economic legislative structure, Invest-Gate reports.

Nasr underlined that the sole proprietorship was the result of the most comprehensive amendment of its kind to the Companies Law, adding that the decision should incentivize small and medium enterprises (SMEs) and entrepreneurs to benefit from the limited liability clauses -stipulated in the law- to sole proprietorship companies, according to a ministerial statement.

“The sole proprietorship companies shall have a statute including their name, purposes, data of their founder, duration, way of management, address of their headquarter, branches if any, capital and rules governing their liquidation, as well as, any other data defined by the executive regulations,” says the minister.

In the statement, the General Authority for Investment (GAFI) CEO Mohsen Adel highlighted that a major advantage of single-shareholder companies is the limited liability of the value of capital submitted by the owner, providing incentives to potential investors to incorporate such companies.