The idea of partnership and contribution has always been a part of the world of life and the development of societies. Until today those ideas have developed into the establishment of huge companies that include large numbers of shareholders who share the work, starting with the capital and ending with sharing all the work steps. Which has many advantages and is not without some disadvantages and obstacles that stand in its way.

What is a joint-stock company?

It is the company in which the company’s capital is divided into equal shares, which commercial methods can trade. So that each partner contributes a certain share of the capital in the form of a share at the beginning of the implementation of the company, it is one of the most powerful companies that need a huge capital to enter the financial stock exchanges or in the internal contracts between individuals.

The liability of each partner in the joint-stock company is limited according to the nominal value of the shares he owns in the company. Joint-stock companies are distinguished by the ease of trading by shareholders in terms of buying and selling shares, where each partner’s ownership percentage is determined by the number of shares he owns.

Incorporation of the joint-stock company

The procedures for establishing joint-stock companies differ from one country to another according to the laws of the country. But in general, it can be said that the following procedures are considered among the basic requirements for establishing a joint-stock company in most countries, which are represented by the following:

* The number of founders of the joint-stock company must not be less than three people. But in general, the number of shareholders in a company varies according to the law of the country in which it is incorporated.
* It is necessary to bring a power of attorney from the company’s founders to those who will carry out the incorporation process.
* Bring copies of the founders’ ID card; if a power of attorney is from a foreign person, it must be attested by the Ministry of Foreign Affairs.
* Photo identification of the persons who will carry out the incorporation process.
* A security inquiry form in case one of the founders is a foreigner.
* In the case of establishing a joint-stock company based in the Tasnee factory, the original rental contract with a proven date must be brought.
* Bring the approval of the competent authority if the purpose of the company requires that, such as transportation.
* Submit an in-kind share evaluation report in case there is an in-kind share at the time of incorporation and according to the nature of each share.
* Certificate of non-ambiguity of the name, to be approved by the Commercial Register
* In addition to a bank certificate and a deposit of no less than 10% of the capital value, then to be completed to 25% within three months, and then to 100% after five years.
* The approval of the chartered accountant to be appointed as an accountant for the company.

Explanation of the incorporation of the joint-stock company

After preparing the previous papers and bonds and considering the implementation of the required procedures. The founders go to the founding hall in the lease agreement, which is affiliated with the Investment Authority. This is after the incorporation number and the investment authority required according to the contract. After that, go to the incorporation lawyer, and submit the company’s documents, which are as follows:

* Names of the company’s founders.
* Number of founders and their power of attorney papers.
The type of activity for which the joint-stock company is to be established.
The percentage of each partner in the joint-stock company and the number of shares he will enter.
* The powers of the board of directors, and who will assume the presidency? Who is the managing director?
* Company capital required, which also varies according to the commercial laws of each country.
* Phone numbers of all contributing partners.

Then, upon completion of the contract, the incorporation attorney must review it and verify all data. Hence, the contract must be signed manually or electronically, according to the authority’s branches. After that, the incorporation fees must be paid, and the company’s contract is notarized.
Finally, the incorporation attorney extracts the company’s incorporation certificate. Here, receiving the company’s notarized contract, investment sheet, tax card, and entry in the commercial registry containing the company’s registration number are possible. Thus, you have completed the procedures for establishing the joint-stock company.

Types of joint-stock companies

Joint-stock companies are divided into two main types:
* Public joint-stock companies: a large number of shareholders who do not have any connection or knowledge. The capital is divided into shares of equal value and tradable in the stock market through a public subscription, i.e., to the public in general.
* Private joint-stock companies: The private joint-stock company consists of shareholders with trust and ties of trust. That is, they can be from the same family, and thus it is called a private company. Also, its capital is divided into shares of equal value, but it is not offered in the financial markets by public subscription. Rather, it is offered by private subscription, that is, between the shareholders within the company only, and by agreement between them.
Advantages of joint-stock companies
Among the most important features of joint-stock companies are:
* The large capital with which the company begins its establishment, which in turn is considered the guarantee to pay off the company’s debts in the event of its bankruptcy.
* The absence, death, or bankruptcy of a shareholder does not affect the company’s existence, as it is based on many shareholders.
* Each shareholder bears his loss according to the percentage of his contribution to the company, i.e., not all shareholders bear the loss and debts in the same proportion.
* The company always enjoys the spirit of cooperation in work because its work plan is based on participation and participation.