Corporate Law at Afghanistan
Here’s an overview of Corporate Law in Afghanistan:
🇦🇫 Corporate Law in Afghanistan
1. Legal Framework
Afghanistan’s corporate law is primarily governed by the Commercial Code of Afghanistan (2014), which modernized previous regulations.
The Commercial Code provides the foundation for business entities, company formation, registration, and governance.
2. Types of Business Entities
Limited Liability Company (LLC): The most common form of business entity, limiting owners’ liability to their capital contribution.
Joint Stock Company (JSC): Suitable for larger enterprises, allows share issuance and trading.
Partnerships: Includes general partnerships and limited partnerships.
Sole Proprietorship: Owned and operated by a single individual, without legal separation.
3. Company Formation and Registration
Companies must register with the Afghanistan Investment Support Agency (AISA) or the relevant Ministry of Commerce.
Registration requires submission of articles of incorporation, shareholder information, and proof of capital.
The process is subject to government oversight and compliance checks.
4. Corporate Governance
Companies must have a board of directors or managers as per their entity type.
Shareholders’ rights and duties are defined by the Commercial Code and company bylaws.
Annual meetings and financial reporting obligations are mandated.
5. Foreign Investment
Foreign investors can establish businesses but may face additional regulatory requirements.
Afghanistan has investment incentives under the Afghanistan Investment Law (2016) aimed at encouraging foreign direct investment.
6. Challenges
Political instability and security concerns affect corporate operations and enforcement.
Regulatory frameworks may face implementation challenges due to administrative capacity.
RELATED Blog
0 comments