Egyptian Cabinet approves a draft law that allows individuals to launch one-person companies with no need for more employees, Trade and Industry Minister Traek Qabil states Wednesday.
According to the draft law, a single person companies would enjoy the guarantees and incentives on investments.
This draft law would also determine the capital required for the establishment of a one-person company, along with other requirements, the minister stated.
He highlighted that the draft law encourages various individual small enterprises working in the informal sector to switch to the formal sector, giving them benefits of being a legal enterprise.
The draft law ensured that the company has an independent legal entity different than that of its owner, who the draft law refers to as the only partner, Aswat Masriya reported quoting the cabinet’s statement.
The cabinet’s approval of the draft law comes as part of its efforts to support small and medium enterprises (SMEs) in a framework of legal security, the statement read.
The bill has been referred to the Parliament for discussion, Qabil added.