Company Registration in Egypt

Egypt is a prosperous country with immense business potential, making it a viable choice for entrepreneurs globally. Being an esteemed COMESA member, Egypt has a lot to offer when it comes to setting up and thriving a business. However, setting up a business in this part of the world attracts plenty of legal requirements. Let’s delve into what they are and how you can proceed with business establishment in Egypt.

Business Structures

The following section depicts the type of business structures available for company registration in Egypt.

Limited Liability Company (LLC)

LLC has a distinct legal identity and hence does not put unnecessary load on the members when it comes to loan or debt repayment. The member contribution is pre-defined, mitigating any chance of addressing unexpected expenses arising from loss or anything else. A minimum capital of EGP 30,000 is required for setting up such an entity.

Joint Stock Company (JSC)

Joint Stock companies are often compared with public limited companies since they can do share trading publicly. They are generally stock-recognized entities, having a bigger business footprint and diverse market reach. The availability of a minimum capital of EGP 1,000,000 is vital for registering such a company.

Branch of a Foreign Company

The Branch office serves as an aid for the foreign parent company. Although they lack direct involvement in business operations, they can help the parent company boost their market presence via marketing endeavors. BOs must abide by Egyptian laws and regulations to stay compliant.

Sole Proprietorship

Easiest to register among all; it attracts minimal paperwork and compliance. However, liabilities here can be sky-high for the owner because this business model lacks a distinct legal identity.

Partnership

The partnership model is ideal for two or more individuals willing to run a business through joint efforts and liabilities. The profit, liabilities, and conditions for running the operation are pre-defined by the members.

Simple Commandite

Limited partners, also known as "Commanditaires" in a Simple Commandite, contribute capital but have limited liability. Their role in decision-making or running an operation is not as prominent as the general members. They are also liable to confront losses or debts but only to the extent of their invested capital.

Documents

Documentation requirements depend on the type of company structure you choose. However, in general, the following dossiers come into play for the company registration:

• Original commercial registration certificate
• Articles of Association
• Notarized copy of the company’s articles of association
• Copies of ID or passport of shareholders
• Original Tax card issued by the Egyptian Tax Authority
• VAT number issued by the Egyptian Tax Authority
• For foreign nationals, a work permit issued by the Ministry of Manpower
• Company’s bank account statement for deposited capital

Process

Company registration in Egypt involves the following steps that must be followed diligently.

Step 1: Choose a Unique Company Name

Selecting an exclusive name for your name is the first step in this process. Visit the concerned authority for name reservation and opt for the name that is trademark-free and unique.

Step 2: Secure the Commercial License:

A commercial license paves the foundation for company registration as it goes along with the charter documents for the authority’s approval.

Step 3: Apply for Tax Registration

Visit the respective Tax authority in Egypt for tax registration. Being tax-compliant is a mandatory requirement for anyone seeking company registration.

Step 4: Secure VAT registration

VAT registration is mandatory for emerging and established businesses in Egypt. Approach the relevant tax authority to apply for the same.

Step 5: Secure a Work Permit

An offshore company applying for a company registration must have a work permit for non-native employees. It is granted by the Ministry of Manpower.

Step 6: Notarize Articles of Assoication

The article of association must be attested by the public notary. The lack of notarization would defy the admissibility of this document at the authority.

Eligibility

Anyone seeking to secure company registration in Egypt must fulfill the following conditions:

• Availability of a unique and trademark-free name for a proposed business.
• Legal capacity for contracts
• The presence of a minimum capital
• The presence of at least one director and shareholder depends on the business structure.
• Conformity with the local and national laws and ensuring compliance

Tax

Businesses in Egypt primarily attract the following taxes:

• Property Tax
• Income Tax (22.5% on profits)
• Capital Gains Tax (10% on asset sales)
• Taxes on salaries (progressive rate)
• Value Added Tax (VAT) at 14%

Why Advisou?

Advisou has long been serving as a trusted ally for clients with global ambition. No matter which nation you choose, we will help you set up your dream venture with zero hassle. We have a team of experienced and proactive professionals working globally and are committed to delivering excellence. Let’s team up and start striking gold with every step we take toward accomplishing global ambition.

Why Advisou matters?

• Thorough acumen of cross-border regulations, helping you stay compliant while operating abroad.
• All-encompassing support for business establishment and post-registration compliance.
• Prompt facilitation of services; meeting objectives before the deadline
• Ability to reconcile legal matters arising out of non-compliance or conflict, in and outside business.