The Ministry of Commerce and Investment has pointed out that the Professional Corporate Law, approved by the Council of Ministers today, aims to motivate free profession practitioners to establish professional companies, besides providing flexibility and freedom to choose the forms of companies, also facilitating their financing process. This is for expanding the growth of professional companies.
The Ministry has pointed out that the new Professional Corporate Law allows the establishment of professional companies that practice more than one profession, based on specific controls that ensure governance. According to the new law, it is allowed for the professional company to take the form of a limited partnership company or a limited liability company or a joint stock company or a General Partnership Co., in addition, the new system allows the participation or the contribution of non-professional investors in the professional companies, and to establish a professional limited liability company, of one person, to practice one or more free professions.
The new system allows the partners or the shareholders of the professional company to transfer it to another form of companies, after fulfilling the conditions and controls stipulated in the law or its implementing regulations.
MCI is in charge of giving licenses to establish a professional company in accordance with the procedures and controls stipulated in the Law and its implementing regulations, taking into consideration the provisions of the Foreign Investment Law.
It is hoped that the new Professional Corporate Law will enhance the confidence of those dealing with the professional companies, besides enabling the practitioners to lead competing professional companies locally and internationally, as well as increasing and improving the employment opportunities in the Professional Services Sector, also arranging and organizing the rights and duties of partners and shareholders in the professional companies, in addition to promoting their business and achieving the required growth. Notably, the provisions of the Corporate Law shall apply to the professional companies, taking into account their nature.
For more information on the new Professional Corporate Law, you can access the following link: click here