Section 2 — Legal Persons
Topic 1 — General Provisions
Article 337:
Legal person is an abstract personality that has legal capacity and is established, for certain objectives,
in the form of organization, company or association.
Article 338:
Legal person is of two kinds:
1 – Public legal person that includes government, its departments, sub-departments or its related
branches, and public institutions.
2 – Private legal person that derives from will of private individuals and has been established in the
form of associations, endowment, organizations, civil or commercial companies and the like,
unless the law has categorized such persons as the public one.
Article 339:
All persons who have the essential conditions and elements of a legal person are recognized as legal
persons by law.
Article 340:
Every legal person shall have a representative who embodies its will.
Article 341:
Legal person shall have all those rights that are determined by law, except those rights that are
exclusive to real person.
Article 342:
(1) Legal person shall have the following characteristics:
1 – Independent financial rights and obligations
2 – Legal Capacity that is stipulated in its charter and law has recognized it as permissible
3 – Right to file a lawsuit or defend against claims
4 – Independent domicile, that is, the place wherein its central administration is located
(2) Central administration of companies whose principle center is located outside Afghanistan and
their branches are legally permitted inside Afghanistan shall be, according to the Afghan law, the
place in Afghanistan wherein administration of its activities is located.