Company Registration in Egypt
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- Complete assistance in obtaining company registration
- Advisory services
- Regular follow up with the authority
- Compliance on regular basis.
Company Registration in Egypt- Overview
Egypt is one of those nations that is highly favoured for investment purposes due to its strategic location. Egypt has an excellent business climate, which has drawn many investors—large and small—to set up shop there. Egypt provides a wide variety of possibilities when it comes to different business structure types. The proper structure can be chosen by the business entities depending on their requirements. One can establish permanent presence by incorporating LLCs or Joint Stock Companies or for temporary presence you may choose for Overseas Branch offices or Representative office. In order to register a company, a number of important criteria must be analysed, including eligibility requirements, business structure, capital requirements, post-registration compliances, documentation, and others.
Benefits of registering your company in Egypt
Egypt’s economy has changed in just a few years, expanding quickly. It has developed into a centre for commerce throughout the Middle East and North Africa. People from all over the world have flocked to invest in Egypt due to the country’s wide range of investment options. Below, we’ve covered a few elements that make Egypt an attractive place to register a business.
- A favourable outlook supported by FDI and infrastructure investment
For businesses looking to grow outside of the developed markets of the northern hemisphere, Egypt has enormous potential. Egypt’s economy, which is the third largest in this region, was one of the few to grow despite the pandemic spreading devastation all over the world. One of the biggest receivers of FDI in the region is Egypt. Egypt’s sizable domestic market, strong GDP growth, advantageous location, etc. are to blame for this. Moreover, with the assistance of the IMF and World Bank, its government has made significant investments in public infrastructure.
- Greater Safety
Due to security concerns, Egypt’s reputation had previously been damaged, but in recent years, things have significantly improved. The safety and security of the populace has increased thanks to government security measures. As a result, investors felt more secure making investments in Egypt, which has boosted Egypt’s reputation internationally.
- Population Growth
One of the key motivations for starting a business in Egypt is the country’s expanding population, which gives entrepreneurs access to a big pool of labour as well as the enormous prospects and potential that a much larger market may provide. About 2 million more people are added to Egypt’s 100 million-person population each year. This enables investors to profit from a developing market.
Types of Business Structure under Egyptian Law
Under the Egyptian Law, the following types of business structure can be opted:
- a Limited Liability Corporation (OLC) owned and operated by one person (LLC)
- a firm that is limited by shares, joint-stock, partnership, or limited partnership
- Independent Contractor Branch Office Representative Office
- Single-person business
One Person Company
is a term used to describe a company that is owned exclusively by one person, whether they are legal or not, and that has a defined purpose. The capital of the business will serve as the owner’s maximum liability. The fact that the firm owner has limited liability shows that they have set aside a portion of their inheritance for business reasons and are only liable to the amount of their capital shareholdings.
Company Limited Liability
In Egypt, one of the most well-known and typical types of corporate entity is the limited liability company (LLC). Egypt’s company creation laws permit LLCs to conduct any type of commercial or industrial activity. A minimum of two shareholders must be named at the moment the company is formed. The liability of the partners is also limited to the amount of their share.
A joint stock corporation may conduct any business activity in Egypt in accordance with local laws and regulations. Once they are established, companies are expected to file yearly financial reports. An Egyptian auditor must examine this. ……… and……………. The Joint Stock Corporation must be closed or traded publicly.
A partnership firm is made up of two or more individuals who pool their financial resources to form a business and decide to split the risks, rewards, and losses. The partner’s liabilities will encompass not just his or her investment in the company but also any personal funds.
Limited Liability Company
There are two sorts of partners in a limited partnership firm: active partners, whose liability extends to their personal funds in addition to their participation in the company; and passive partners. Dormant partner: This partner’s liability is restricted to his or her ownership interest in the company; it does not cover any of his or her personal assets.
A sort of business structure called a sole proprietorship is run and owned by one person. This corporate entity has no partners. The proprietor of this business will be liable for any debts that exceed his own assets as well as the entity’s capital.
A branch office may undertake any sort of legal activity in Egypt for which it is registered in the Commercial Registry. The branch office is not required to have a minimum capital investment.
A foreign business may open a “representation, liaison, scientific, or other office, the sole objective of which shall be to conduct market research or assess the viability of production without engaging in any commercial activity.
Eligibility Requirements to register a company in Egypt
A corporation must meet a number of fundamental eligibility conditions in order to register in Egypt. Depending on the type of corporate organisation, these needs may change. Here, we’ve used the LLC as an example.
A minimum of two shareholders and a maximum of 50 shareholders are required to incorporate an LLC in Egypt. If there are less than two shareholders at any point, the LLC will be assumed to have been wound up by operation of law.
Each partner or shareholder shall be accountable to the extent of the value of his or her shares, and the minimum share capital needed to incorporate an LLC is £E 50,000.
One or more managers may be given control over the management of the LLC. Egyptian nationality shall be represented by at least one manager.
With the exclusion of insurance, banking, accepting deposits, and investing money on behalf of others, an LLC is permitted to engage in a wide range of business activities.
To maintain official records and for official communication, every company must have a registered office in Egypt.
Documents required for Company Registration in Egypt
The documents required for registering Joint stock and limited by shares companies are as follows:
- certificate attesting to the commercial registry’s authorisation of the name;
- bank deposit guaranteeing at least 10% of the issued capital;
- a duplicate of each founder’s POA;
- a copy of the founders’ legitimate ID;
- Proof of the legal advisor for the company’s name and address.
- The following papers are needed to register an LLC:
copies of each partner’s notarized power of attorney and their current passports or IDs;
- original certification from the accountants and auditors registry; certification attesting to the commercial registry’s approval of the name;
- Proof of the legal advisor for the company’s name and address.
Procedure for Company Registration in Egypt
Once you have decided the type of business structure, you may proceed for company registration process. The process is as follows:
- clear business names
A corporation must receive name permission from the commercial registry before it may start doing business. The business’s proposed name must be distinct and not already be in use by another entity.
- Submission of an Application and Documents
Documents and an application for company registration must be delivered to GAFI’s Companies Establishment Department. The authority examines the paperwork and application.
- Get a certificate of incorporation
The authority will issue the incorporation certificate for the establishment of the company if the application filed and the supporting documents are approved by the authority.
Before you can begin your business activity after the company has been incorporated, there are a few more steps you must do.
- business checking account
You will need to open a business bank account in the company’s name. Via this bank account, the business can conduct all of its financial transactions.
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Following incorporation, the business may register with the GAFI’s Tax Office.
- Acquire licences or permits
In order to operate, you might need a licence or authorization. Depending on the type of company activity you plan to engage in, a licence may be required. Hence, acquiring permits or licences is an important process.
Frequently Asked Questions
Which form of business organisation ought I pick for my tiny firm?
In Egypt, LLCs are among the most popular choices for business structures. Creating an LLC is also affordable.
Why should I set up my business in Egypt?
By registering your company in Egypt, you can access the third-largest market in Africa.
Which organisation is in charge of financing projects in Egypt?
In charge is the GAFI, or General Authority for Investment and Free Zones.
Will Egypt allow me to incorporate an OPC?
You can incorporate an OPC, according to the most recent revision.
A branch office is what?
Any legal activity that is permitted in Egypt may be carried out by a branch office as long as it is listed there in the Commercial Registry.