Company Law

Company Law is vital for a successful business environment. It remains important because it determines the environment in which investors will be operating their businesses in. The Company Law No. 22 of 1997 limits routine procedures and facilitates the process of company registration. The Law introduced the not-for-profit company form as well as the civil company form, which provides for the establishment of companies by professional persons, such as lawyers, doctors or engineers. Under the new Law, companies are no longer required to pay a 15 percent capitalization charge, which had previously proved a barrier to capital reserves. In addition, amendments to the Law allow company founders to adopt the prices they deem appropriate in estimating the value of their fixed assets.

One should understand the nature of companies and their registration procedures in order to measure their effects on the economy. It is also important to note that significant developments have been made in the administration and procedures of registration within the Ministry of Industry and Trade (MIT). And more reform is underway.