Company Registration in Egypt

Company Registration in Egypt

Egypt, strategically located at the crossroads of Africa, Asia, and Europe, offers a vibrant and growing market for businesses. With a large population, expanding infrastructure, and a government keen on economic reforms, Egypt presents significant opportunities for local and foreign investors alike.

Registering a company in Egypt allows entrepreneurs to access key industries such as manufacturing, agriculture, tourism, and energy. The Egyptian government has streamlined business regulations to attract foreign direct investment, making the process of company formation more transparent and investor-friendly.

Types of Business Entities for Company Registration in Egypt

Choosing the right type of business entity in Egypt is crucial for legal compliance, tax planning, and operational efficiency. Here are the main types of business structures available:

1. Limited Liability Company (LLC)

  • Most common type for small to medium-sized businesses.

  • Shareholders’ liability limited to their contributions.

  • Requires at least 2 and up to 50 shareholders.

2. Joint Stock Company (JSC)

  • Suitable for larger businesses and publicly traded companies.

  • Requires a minimum capital of EGP 250,000.

  • Can be either public or closed.

3. Sole Proprietorship

  • Owned and operated by one individual.

  • Unlimited liability.

  • Simple setup with fewer formalities.

4. General Partnership

  • Formed by two or more partners sharing unlimited liability.

  • Suitable for professional service firms.

5. Limited Partnership

  • Comprises general partners (unlimited liability) and limited partners (liability limited to their capital).

6. Branch of a Foreign Company

  • Not a separate legal entity.

  • Operates under the parent company’s name but must register locally.

Eligibility Criteria for Company Registration in Egypt

Before registering a company in Egypt, it’s important to meet the following eligibility criteria:

 1. Shareholders

  • Can be individuals or corporate entities.

  • Both Egyptian nationals and foreigners are allowed to be shareholders.

  • No restrictions on nationality for most business types.

 2. Directors

  • At least one director is required.

  • Directors can be foreign nationals.

  • Some business sectors may require Egyptian residency for at least one director.

 3. Minimum Capital Requirement

  • Varies by business type:

    • LLC: Minimum capital of EGP 50,000.

    • Joint Stock Company: Minimum capital of EGP 250,000.

    • Other forms may have different thresholds.

 4. Registered Office Address

  • A valid physical address in Egypt must be provided.

  • Virtual offices may be accepted if compliant with Egyptian laws.

 5. Business Activity Approval

  • Certain industries (e.g., banking, insurance, real estate) require special government approvals or licenses before registration.

Procedure for Company Registration in Egypt

Registering a company in Egypt involves several key steps to ensure full compliance with local laws and regulations:

Step 1: Reserve Company Name

  • Submit a name reservation request to the General Authority for Investment and Free Zones (GAFI).

  • Ensure the proposed name is unique and complies with naming regulations.

Step 2: Draft the Company’s Memorandum and Articles of Association

  • Prepare and notarize the company’s Memorandum of Association (MOA) and Articles of Association (AOA).

  • These documents define the company’s objectives, structure, and internal governance.

Step 3: Deposit Capital

  • Open a bank account in Egypt and deposit the minimum required capital.

  • Obtain a bank certificate confirming the deposit.

Step 4: Submit Registration Application to GAFI

  • File the application with all necessary documents, including:

    • Name reservation certificate

    • MOA and AOA

    • Bank deposit certificate

    • Copies of shareholders’ IDs or passports

    • Proof of registered office address

Step 5: Obtain Commercial Registration Certificate

  • Once approved, receive the official Commercial Registration Certificate, confirming company incorporation.

Step 6: Register with Tax Authorities

  • Register for tax identification numbers and VAT with the Egyptian Tax Authority.

Step 7: Register for Social Insurance

  • If the company has employees, register with the Social Insurance Authority.

Various Taxes Applicable to Registered Companies in Egypt

Companies registered in Egypt are subject to several types of taxes. Below are the main taxes applicable:

 1. Corporate Income Tax

  • Standard corporate tax rate is 22.5% on net profits.

  • Some activities may have different rates or exemptions based on government incentives.

 2. Value Added Tax (VAT)

  • Standard VAT rate is 14%.

  • Applicable to the supply of goods and services.

  • Companies must register for VAT if annual turnover exceeds the mandatory threshold.

 3. Withholding Tax

  • Applied on certain payments such as dividends, interest, royalties, and fees to non-residents.

  • Rates vary depending on the nature of the payment and tax treaties.

 4. Social Insurance Contributions

  • Employers must contribute to social insurance schemes for their employees.

  • Rates vary depending on the sector and employee wages.

 5. Stamp Duty

  • Levied on certain legal documents and transactions.

Documents Required for Company Registration in Egypt

To register a company in Egypt, the following documents are typically required:

 1. Application Form

  • Completed company registration application form submitted to the General Authority for Investment and Free Zones (GAFI).

 2. Memorandum and Articles of Association

  • Notarized copies detailing the company’s structure, objectives, and internal rules.

 3. Identification Documents

  • Copies of passports or national IDs of all shareholders and directors.

 4. Proof of Registered Office Address

  • Lease agreement or ownership documents confirming the company’s physical address in Egypt.

 5. Bank Deposit Certificate

  • Certificate from a local bank confirming the deposit of the required minimum capital.

 6. Power of Attorney 

  • If the registration is handled by a third party, a notarized power of attorney must be provided.

 7. Commercial Registration Certificate (post-registration)

  • Issued by GAFI upon successful registration.

Benefits of Company Registration in Egypt

Registering a company in Egypt offers numerous advantages for entrepreneurs and investors, including:

 1. Strategic Geographic Location

  • Egypt serves as a gateway between Africa, the Middle East, and Europe, ideal for international trade and logistics.

 2. Access to Regional Markets

  • Registered companies can benefit from trade agreements with regional economic blocs like the Common Market for Eastern and Southern Africa (COMESA) and the Greater Arab Free Trade Area (GAFTA).

 3. Government Incentives

  • Various incentives including tax exemptions, reduced customs duties, and support for investments in key sectors.

 4. Growing Economy

  • Egypt’s expanding infrastructure, industrial zones, and consumer market provide fertile ground for business growth.

 5. Limited Liability Protection

  • Shareholders’ personal assets are protected with limited liability company structures.

 6. Simplified Registration Process

  • Reforms have streamlined company registration and improved the ease of doing business.

Why Choose YKG GLOBAL for Company Registration in Egypt?

At YKG GLOBAL, we provide comprehensive and tailored solutions to help you establish your business seamlessly in Egypt:

 1. In-Depth Local Knowledge

  • Our experts understand Egypt’s legal, regulatory, and business environment to ensure smooth company registration.

 2. Complete End-to-End Service

  • From name reservation to tax registration, we handle every step so you can focus on growing your business.

 3. Personalized Support

  • Customized guidance based on your industry, business size, and expansion goals.

 4. Fast and Efficient Process

  • Leveraging our local network and experience, we minimize delays and accelerate your registration timeline.

 5. Post-Registration Compliance

  • Assistance with ongoing compliance such as tax filings, labor laws, and regulatory updates.

 

FAQ'S

Egypt offers access to African and Middle Eastern markets, economic stability, low corporate taxes, and a strategic geographic position for global trade.

Egypt’s unique location connects Europe, Africa, and the Middle East, providing unparalleled access to regional and international markets.

Businesses can choose from limited liability companies, joint stock companies, branch offices, or representative offices for non-trade purposes.

YKG Global provides name reservation, nominee directors, registered office setup, corporate bank accounts, and licensing services to ensure smooth registration.

No, YKG Global handles all paperwork remotely, allowing you to establish your business in Egypt without travelling.

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