The establishment of Egyptian companies and their economic activities are regulated by various laws, such as on corporations (Companies Law No. 159 of 1981), on investments (Investment Law No. 72 of 2017), on commercial law (Capital Markets Law No. 95 of 1992) and others.
A foreign investor in Egypt will be interested in the following forms of doing business:
The registration body for companies and individual entrepreneurs in Egypt is the General Authority for Investment and Free Zones (GAFI) under the Egyptian Ministry of Investment.
The most common type of company registered in Egypt are Limited Liability Companies (LLC).
When registering a company in Egypt, the company name must be checked for availability.
The name of the LLC must derive from the company’s objectives and may include the name of one or more of its members/shareholders. The name must also include the words ‘Limited Liability Company’ (in accordance with the Ministerial Decision Implementing the Commercial Companies Law).
Incorporation of a limited liability company in Egypt includes the following stages:
1. Reserving the company name in the Trade Register (at least 3 names).
2. Obtaining a bank letter.
3. Certifying the necessary documents.
4. Registration of a company at GAFI. This will require submission on the following documents:
If the participant of the company is a legal person:
Most of the main documents must be in English and certified by the Egyptian Embassy.
5. Registration at the Egyptian Tax Authority.
6. Registration at the National Social Security Administration.
The timeframe for registering a company after providing all the necessary information, conducting an initial compliance check, agreeing on a final list of documents and paying the bill is about 5 - 7 business days.
Egypt is not a party to the 1961 Hague Convention (Apostille Convention), which abolishes the requirement of legalization for foreign official documents. Therefore, neither originals or copies of company documents cannot be apostilled.
It turns out, for the procedure of registration of a company in Egypt and the subsequent use of documents of the Egyptian Company in other countries may require legalization of documents. The legalization procedure takes place at the consulate of the country in which it is planned
A registered office in the country is mandatory.
There are no statutory requirements for Egyptian companies to have a seal.
Foreign companies and partnerships are regarded as resident in Egypt if they meet one of the following conditions:
Egypt is regarded as effective place of management if an entity meets any two of the following conditions:
The management of an LLC may be entrusted to one or more managers. However, for some activities at least one manager must be an Egyptian citizen (e.g. import or export for trade purposes).
Legal persons may not be managers of a limited liability company.
The name of the manager must be mentioned in the Memorandum of Association.
The manager may be appointed for a fixed term (which must be specified in the Memorandum of Association) or for an indefinite period. He must also have full authority to represent the LLC before third parties, unless such authority is limited or stipulated in the Memorandum of Association.
A Security Clearance must be obtained for a foreign manager, as well as Work Permit and Residence Permit.
If the number of shareholders becomes less than 2, an LLC will be considered liquidated by law or converted into single-shareholder company.
Participants can be both legal entities and individuals.
If the number of shareholders becomes less than 2, an LLC will be considered liquidated by law.
An LLC must also maintain a Register of Shareholders, which is kept at the head office. The Register specifies:
Egypt does not yet have a central public register of beneficial owners.
The minimum capital requirement for a limited liability company (LLC) in Egypt is EGP 1 000, except for certain activities (e.g. import for trade).
It should be divided into equal parts, the value of each of them not less than EGP 100 paid in full.
A company with a capital less than EGP 250 000 is exempt from the obligation to distribute up to 10% of its of its dividends to employees, provided that this 10% does not exceed the annual total wages paid to employees.
In Egypt, it is possible to register a company in one of the special economic zones (Free Zone, Industrial Zone, Commercial Zone, etc.) in order to get Zone, Industrial Zone, Commercial Zone, etc., to take advantage of some of the tax breaks.
Free Zone is the ability to sell products for export only, not within Egypt. What is produced or imported is not subject to customs duty and VAT on exports (1%-3% annual VAT).
Industrial Zone - the ability to produce, export and sell in Egypt. What is manufactured or imported is exempt from customs duty and VAT on exports, only VAT on sales in Egypt is refunded.
There are no factories, workers or machinery in the Commercial Zone. No import of materials, no production.
The cost of opening a company in Egypt depends on the type of company to be registered and the type of activity you will be engaged in. The minimum package of services costs USD 5 500 and includes: registration of the company on a turnkey basis, lease of the registered office for a year and secretarial services, payment of all necessary duties and fees, as well as apostilled translation of the constituent documents.
Yes, a foreigner can own a business in Egypt. The country has a number of measures in place to support foreign investment and encourage the establishment of foreign-owned businesses. Under Egyptian law, foreign investors are permitted to fully own their companies and are treated the same as local investors. There are also a number of incentives available to foreign investors, such as tax exemptions and relaxed regulations for certain industries. However, it's important to note that there may be certain restrictions and requirements for foreign investors, such as obtaining a residency permit and registering the company with the local authorities.
The minimum capital requirement for a limited liability company (LLC) in Egypt is currently EGP 1 000 (approximately USD 20). This amount must be fully paid up and deposited in a local bank before the company can be registered and commence operations. It's important to note that this is a general guideline and the actual minimum capital requirement can vary depending on the specific nature of the business and the type of activities it will engage in. For example, certain industries or activities may require a higher minimum capital, while others may have a lower requirement or be exempt from the minimum capital requirement altogether.
No, Egypt is not considered an offshore jurisdiction. An offshore jurisdiction is a country or territory which offers favorable tax and regulatory treatment to foreign businesses and individuals. Egypt has a relatively high corporate tax rate, currently at 22.5%, and there are a number of regulations governing businesses and the behavior of foreign investors. And while Egypt offers some incentives to foreign investors, such as tax exemptions and relaxed regulations for certain industries, it is not considered a tax haven or offshore jurisdiction. It is important to note that the definition of an offshore jurisdiction may vary, and different countries and organizations may have different criteria for defining what is offshore. However, Egypt is not considered offshore in the classic definition.
PriceUSD 5 500
(including incorporation tax and state registry fee)
Priceincluded
Pricefrom USD 790
(including registered address)
PriceUSD 275
DHL or TNT, at cost of a Courier Service
Pricefrom USD 1 650
Compliance fee is payable in the cases of: incorporation of a company, renewal of a company, liquidation of a company, transfer out of a company, issue of a power of attorney to a new attorney, change of director / shareholder / BO (except the change to a nominee director / shareholder), signing of documents
PriceUSD 385
simple company structure with only 1 physical person
PriceUSD 165
additional compliance fee for legal entity in structure under GSL administration (per 1 entity)
PriceUSD 220
additional compliance fee for legal entity in structure NOT under GSL administration (per 1 entity)
PriceUSD 495
PriceUSD 110