Egypt is a strategically positioned and business-friendly jurisdiction for company registration, attracting investors with its robust economy, large domestic market, and gateway to Africa and the Middle East. The country has modernized its legal and regulatory framework to facilitate business formation and growth, making it an attractive destination for both local and international entrepreneurs.
Egypt’s strategic location enhances its appeal. With access to the Suez Canal, the country serves as a vital hub for global shipping and trade. Its growing network of free zones and special economic zones further bolsters investment by offering incentives such as duty-free imports and exports and exemptions from certain taxes.
Infrastructure is another key advantage. Egypt boasts a developed transportation network, extensive port facilities, and modern telecommunications infrastructure, providing a solid foundation for businesses. The country’s young and educated workforce further adds to its attractiveness, offering a talent pool for various industries.
The process of registering a company in Egypt is overseen by the General Authority for Investment and Free Zones (GAFI), which acts as a one-stop shop for investors. The authority has simplified procedures and improved efficiency, with most companies able to incorporate within weeks. The entire registration process generally takes about two weeks to a month, depending on the type of business and the completeness of the application.
Legal Opinion about Egypt as a Jurisdiction for Company Formation
Ganna Voievodina
Manimama
|
CEO
“Overall, Egypt’s stable macroeconomic policies, growing economy, and investor-friendly environment make it a compelling jurisdiction for registering a company. Manimama is ready to help you with business registration in Egypt”.
Our Packages
Our comprehensive packages simplify the process of setting up the perfect legal entity for your business whether you are a small start-up, a non-profit company, or an international company. Let us guide you through every step, ensuring your business begins on a solid foundation.
Company Formation
- Company formation
- Registered address for the 1st year
- Annual accounting requirement bookkeeping
Annual Services
- Company renewal and registered address
- Annual Government Tax
- Mandatory Financial Beneficiary Report
Other Services
- Set of corporate documents (certified/apostille)
- Nominal service for 1 year
- Offshore banking
Key Numbers about Incorporations
minimum 1resident director for a company |
up to 3 weekstimeline for a company registration |
EGP 50,000minimum share capital |
22.5%corporate income tax (CIT) rate |
up to 27.5%personal income tax (PIT) rate |
14%value added tax (VAT) rate |
Set up Your Company in Egypt in Several Steps
- Step 1. Initial setup
- Initiating a preliminary project assessment
- Preparation and filing of the package of documents
- Step 2. Company registration
- Choosing a unique company name and get it approved
- Facilitating the notarial process for the company's official registration
- Incorporating the company's data into the GAFI
- Obtaining the Certificate of incorporation from the GAFI, Memorandum and Articles of Association
- Registration for tax and social security purposes
- Obtaining any required business licenses and permits
Requirements for Company Formation in Egypt
Before deciding to set up a new company in Egypt, read the information below to understand the characteristics of a Limited Liability Company (LLC):
Shareholders: minimum 2 shareholders, which can be both individuals and legal entities. The maximum number of shareholders is 50. In general, foreign businesses with 100% full ownership are allowed to be established in Egypt. However, foreigners may face restrictions on conducting certain types of business.
Director: the company must appoint at least 1 director who is an Egyptian resident.
Company secretary: there is no requirement.
Minimum share capital: the minimum capital requirement is EGP 50,000 (~ $1,000).
Legal address: the company is required to have a registered office in Egypt in order to conduct official communications and maintain documents and records.
Liability: shareholders are only liable to the extent of their shares, which offers protection against personal liability for the company's debts.
Accounting: the company is required to file annual financial statements and annual tax returns.
Taxes in Egypt
Corporate income tax (CIT)- The CIT is 22.5% on the net taxable profits of a company.
- Non-resident corporations and partnerships pay tax on income derived from their permanent establishments in Egypt.
- Specific rates apply to certain sectors, such as 40.55% for oil exploration and production.
- The rates are the following:
- from EGP 1 (~ $0,020) to EGP 40,000 (~ $800) - 0%;
- from EGP 40,000 (~ $800) to EGP 55,000 (~ $1,100) - 10%;
- from EGP 55,000 (~ $1,100) to EGP 70,000 (~ $1,400) - 15%;
- from EGP 70,000 (~ $1,400) to EGP 200,000 (~ $4,000) - 20%;
- from EGP 200,000 (~ $4,000) to EGP 400,000 (~ $8,000) - 22.5%;
- from EGP 400,000 (~ $8,000) to EGP 1,200,000 (~ $24,000) - 25%;
- more than EGP 1,200,000 (~ $24,000) - 27.5%.
- The standard VAT rate is 14%.
- The reduced rates are 5% (machinery and equipment that are necessary for producing goods or providing services, etc.) and 0% (exported goods and services).
- Compulsory VAT registration applies to businesses with annual taxable sales exceeding EGP 500,000 (~ $10,000).
- Exemptions apply to necessities such as dairy products, certain medical supplies, agricultural goods, financial services and educational materials, etc.
Double taxation avoidance agreements in Egypt: Albania, Algeria, Austria, Bahrain, Belarus, Belgium, Bulgaria, Canada, China, Cyprus, Czech Republic, Denmark, Finland, France, Georgia, Germany, Hungary, India, Indonesia, Iraq, Ireland, Italy, Japan, Jordan, Korea, Kuwait, Lebanon, Libya, Macedonia, Malaysia, Malta, Mauritius, Morocco, Netherlands, Norway, Oman, Pakistan, Palestinian Territories, Poland, Romania, Russia, Saudi Arabia, Serbia and Montenegro, Singapore, South Africa, Spain, Sudan, Sweden, Switzerland, Syria, Tunisia, Turkey, Ukraine, United Arab Emirates, United Kingdom, United States, Yemen.
Start Your Company Formation Process with Manimama
There are numerous reasons why Manimama is the leading company formation agent in Egypt:
Expertise in Regulations of Egypt
- 1. Manimama has an in-depth understanding of Egypt's legal and regulatory framework.
- 2. Our team ensures all legal requirements are meticulously met for a seamless company formation process.
Local and International Experience
- 1. With extensive experience in both local and international markets, Manimama can cater to a diverse range of business needs.
- 2. Our expertise spans various industries, providing customized solutions for each client.
Efficient and Timely Service
- 1. We pride ourselves on our swift turnaround times, ensuring your company is registered promptly.
- 2. Our efficient processes minimize delays and get your business up and running quickly.
Client-Centric Approach
- 1. Manimama prioritizes customer satisfaction by offering personalized support and guidance.
- 2. Our dedicated team is always available to address any concerns and provide expert advice.
Robust Network of Local Partners
- 1. We have established strong relationships with local authorities, banks, and service providers.
- 2. This network ensures that your business receives the best possible support and resources.
Ongoing Compliance Support
- 1. We provide continuous support to ensure your business remains compliant with laws of Egypt.
- 2. Our team keeps you updated on any regulatory changes that may impact your company.
Frequently Asked Questions
-
What types of companies can be established in Egypt?Egypt recognizes several company types, including limited liability companies, joint-stock companies, sole proprietorships, and branch offices.
-
Can foreigners own 100% of a company in Egypt?Yes, foreign investors can own 100% of an LLC or a joint-stock company, except in certain restricted industries like importation or specific national security-related sectors.
-
What are the main steps to register a company in Egypt?Key steps include:
- Choosing a business structure.
- Registering with the General Authority for Investment and Free Zones (GAFI).
- Obtaining a registration in the commercial registry.
- Securing tax and social insurance registrations.
-
What is the corporate tax rate in Egypt?The standard corporate tax rate is 22.5%. However, specific rates apply to certain sectors, such as 40.55% for oil exploration and production.
-
Is a resident director required for a company in Egypt?Yes, at least 1 director must be with an Egyptian residence.
-
Do I need a local partner to start a business in Egypt?Not generally, but some sectors (e.g., import businesses) require at least 51% local ownership.
-
What are the annual compliance requirements for companies?Companies must submit annual financial statements, pay taxes, and file periodic reports with the tax authority and other regulatory bodies.
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What happens if I fail to comply with regulations?Non-compliance can lead to fines, suspension of operations, or legal actions, depending on the severity of the violation.
Semen Kaploushenko
“Thanks to Manimama OU's efforts, I was able to resolve my problem in no time”.
Vadym Grusha
“The team of lawyers demonstrated a high level of professionalism and in-depth knowledge in their field”.
Yuriy Soshenko
"The result exceeded my expectations and I am sincerely appreciative of the help I received”.
Manimama as the Best Solution for Your Company Formation in Egypt
By choosing our company formation service in Egypt, you are partnering with a law firm that values integrity, expertise, and client satisfaction. Let us help you set up your company in Egypt and pave the way for your business success.
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