The Egyptian Cabinet approved Wednesday a draft law allowing individuals to launch one-person companies without the need for more employees, Tareq Qabil, the Minister of Trade and Industry, said in a press conference.
The draft law stipulates that the single person companies would enjoy the guarantees and incentives in articles 8-13 of Law No. 8 of 1997 on investments.
This bill also shall determine the capital required for the establishment of a one-person company, along with other requirements.
Qabil highlighted that the bill 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.
