Starting a Business in Egypt: Legal Guide

At Legal Way, we believe that starting your business in Egypt should be as seamless as possible. With its strategic location and vibrant economy, Egypt presents numerous opportunities for entrepreneurs and investors. However, navigating the legal landscape can be challenging without the right guidance. That’s where we come in. With our expertise, we’ll guide you step-by-step to ensure your journey is smooth and compliant. After all, “The Way for Trust” is what we stand for.

1. Choose the Right Business Structure

Selecting the appropriate legal structure is the foundation of your business success. Egypt offers several options, each tailored to different business needs:

Limited Liability Company (LLC): Perfect for small to medium-sized enterprises. An LLC requires at least two partners (up to fifty) and a minimum capital of EGP 1,000. There are no restrictions on the nationality of the partners, making this a flexible choice for many.

Joint Stock Company (JSC): Designed for larger ventures with significant capital needs. This structure requires at least three shareholders, a minimum capital of EGP 250,000 (10% paid at registration and 25% within three months), and offers a robust framework for growth.

One Person Company: Ideal for sole proprietors, this structure allows a single individual or entity to establish a limited liability company. You retain full control while appointing directors to manage operations.

Branch Office: For foreign companies looking to operate in Egypt, a branch office is a great option if you have a contract with an Egyptian entity. While there are no capital requirements, you’ll need to deposit EGP 5,000 in foreign currency.

2. Reserve Your Company Name

A unique company name is essential. It should comply with the Egyptian Commercial Registry’s guidelines and avoid conflicts with existing entities. Our team can assist you in verifying and reserving your business name efficiently.

3. Prepare the Required Documentation

Preparing accurate and complete documentation is critical to avoid delays. Depending on your business structure, here’s what you’ll need:

Articles of Association: A document outlining your company’s purpose, structure, and operational guidelines.

Shareholders’ Identification: Copies of national IDs or passports for all shareholders.

Proof of Address: Documentation for shareholders and your company’s registered address.

Bank Certificate: Evidence of initial capital deposit.

Power of Attorney: If a representative is managing the registration process on your behalf.

4. Register Your Business with GAFI

The General Authority for Investment and Free Zones (GAFI) oversees company registrations in Egypt. Submit your application, including all necessary documents, to GAFI. Once approved, you’ll receive a certificate of incorporation—officially establishing your company.

5. Tax Registration

After incorporation, your business must be registered with the Egyptian Tax Authority to obtain a Tax Identification Number (TIN). This step is crucial for legal compliance and allows your company to operate within the country’s tax framework.

6. Open a Corporate Bank Account

A corporate bank account in the company’s name is necessary for financial transactions and depositing your initial capital. We collaborate with reputable banks to streamline this process for you.

7. Secure Licenses and Permits

Depending on your business activities, you may need additional licenses or permits. For example:

Health certificates for businesses in food or healthcare sectors.

Environmental permits for industries affecting natural resources.

Other sector-specific authorizations.

Our team can help identify and obtain the necessary permits to keep your business compliant.

8. Understand the Timeline and Costs

Timeline: Registering a business in Egypt typically takes 2 to 6 weeks, depending on the complexity of your application.

Costs:

LLC registration fees: EGP 500 to EGP 2,000.

JSC registration fees: Starting from EGP 5,000.

Additional costs may include notarization, legal consultations, and licensing fees.

Starting a business in Egypt is an exciting venture, and with the right guidance, it can be a straightforward process. At Legal Way, we are committed to being your trusted partner every step of the way. Whether it’s selecting the right structure, preparing documents, or navigating the registration process, we ensure your business is built on a solid legal foundation. Let’s make your entrepreneurial dreams a reality. After all, “The Way for Trust” is what defines us.

Contact Legal Way today to get started on your journey to success!