Rules of Registration and Formation of Commercial Companies According to the Laws of Afghanistan

Abstract

Aim: The primary goal of this research study is to clarify and identify the provisions related to the formation and registration of commercial companies in Afghanistan's statutory law for readers, particularly businessmen. Methods: The doctrinal research methodology and descriptive, explanatory, and analytical research approaches are used in this work. It is worth mentioning that this research study is entirely based on library sources. Results: The study found that the rules and regulations related to the formation and registration of commercial companies are simply and clearly mentioned in Afghan law. In many cases, international standards have been observed on the basis that businessmen can easily establish companies. In the Afghan commercial code, there is no explanation regarding the registration and formation of the cooperative companies. However, there is a special code related to cooperative companies, and all topics related to cooperative companies are discussed in that law. Furthermore, different special conditions and principles apply during formation of each type of commercial companies as stipulated by Afghan commercial codes. Conclusion: The study concluded that commercial companies are divided into five types in the Afghan commercial code. Recommendation: The study recommend Ministry of Commerce and relevant agencies to develop public awareness programs for investors regarding Afghan laws. Most businessmen do registration and formation of companies through third parties who are not very informed about relevant principles. This method may cause conflicts between the partners.