Family business form

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It is important to determine the legal form of the family business, since it does not constitute a distinct form from other well-known general forms of companies, and accordingly, jurisprudence and legislation have tried to put it in a form that is compatible with the general forms of companies stipulated in the corporate laws, such as one-person companies, companies of persons and companies with Limited liability, partnership companies of both types, or joint stock companies. The importance in defining the form of family businesses is defining the legal mechanism in dealing with the company, given the difference of that mechanism from one form to the other, including in the nature of the obligation, the right of creditors, and how to divide profits and losses, in addition to giving legal legitimacy to the company as an entity, and to all Their actions, and accordingly, family businesses are not subject to corporate law unless they take the form of one of the forms stipulated in corporate laws, and in light of this, we highlight the general legal forms of companies that are compatible with the family business, and accordingly we talked about legal trends in the extent to which family businesses can take The form of a one-person company, partnerships of individuals, funds companies, or mixed companies, and our discretion in that.

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