Company Registration in Egypt in 2023-2024
Egypt is considered one of the most attractive investment destinations, as it is located at the crossroads of Africa, Asia, and Europe, making it an ideal location for businesses looking to expand into other markets.
Eventually, Egypt is also a member of the Common Market for Eastern and Southern Africa (COMESA), the League of Arab States, and the World Trade
Organization (WTO), which provide businesses with access to markets in other countries. It’s worth noting that while Egypt presents a lot of opportunities, it becomes very crucial to conduct thorough research and due diligence before starting a business in any country and to understand the legal, economic, and political environment.
In this article, we will be going to discuss more briefly the process of company registration in Egypt and the various documents that are required to register a Company in Egypt.
Procedure for Egypt Company Registration
The procedure for registering a company in Egypt typically involves the following steps:
Choose a company name
The first step in registering a company in Egypt is to choose a unique name for the business.
Obtain a commercial registration certificate
The application must be accompanied by the company’s articles of association, a copy of the company’s ID, and a copy of the company’s commercial registration certificate.
Obtain a Tax Card
The company must register for an Income Tax Card from the Egyptian Tax Authority
Obtain a VAT registration number
The company must register for a VAT number from the Egyptian Tax Authority.
Obtain a commercial licence
The company must obtain a commercial licence from the Ministry of Trade and Industry.
Obtain a work permit
Foreign nationals who will be working for the company in Egypt must obtain a work permit from the Ministry of Manpower.
Notarize the company’s articles of association
The company’s articles of association must be notarized by a public notary.
Documents Required for Company Registration in Egypt
The documents required for company registration in Egypt vary depending on the type of company and the specific registration requirements.
Generally, the following documents are needed for company registration in Egypt:
- Copies of the ID or passport of the shareholders
- Articles of Association
- An original copy of the commercial registration certificate issued by the Ministry of Trade and Industry.
- An original copy of the 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
- A notarized copy of the company’s articles of association
- Company’s bank account statement for the deposited capital
It is essential to note that the specific document requirements can vary depending on the type of company structure and the industry it operates.
Types of Business Entities for Company Registration in Egypt
Several types of business entities can be registered when you think to register a company in Egypt, the most common of which are described below.
Limited Liability Company (LLC)
This is the most common type of business entity in Egypt. It is a separate legal entity from its shareholders and is responsible for its debts. The minimum capital required for an LLC is EGP 30,000.
Joint Stock Company (JSC)
This is a type of company that has capital divided into shares, which are owned by shareholders. The minimum capital required for a JSC is EGP 1,000,000.
Branch of a Foreign Company
A foreign company can register a branch in Egypt, which is subject to the laws and regulations of Egypt.
Sole Proprietorship
A sole proprietorship is a business owned and run by one person, who is also liable for the business debts.
Partnership
A partnership is a business owned and run by two or more individuals, who are jointly and severally liable for the business debts.
Simple Commandite
A simple commandite is a type of partnership where one or more partners are liable for the partnership’s debts, while the other partners are not liable.
Eligibility for Egypt Company Registration
To be eligible for company registration in Egypt, the following criteria must typically be met:
- The Firm name should be unique and shouldn’t be identical to any extant firm name.
- The individuals or entities registering the firm should possess the legal capacity to enter into contracts and conduct business.
- The firm should have at least a capital as per Egyptian commercial law, i.e. EGP 30,000 for a limited liability company.
- The firm should have at least one shareholder & one director who is responsible for the management of the company.
- The firm should have a registered office in Egypt where official correspondence can be sent.
- The firm’s business activities must comply with the laws and regulations in Egypt.
- Foreign ownership of a firm in Egypt is allowed and is subject to certain regulations, such as obtaining a work permit for foreign directors and shareholders.
Various Taxes on Egypt Company Registration
Egypt Company registration is subject to various taxes, including:
- Income Tax: Companies are required to pay income tax on their profits at a rate of 22.5%.
- Value Added Tax (VAT): Companies are required to pay VAT on their taxable supplies at a rate of 14%.
- Property Tax: Companies that own property in Egypt are required to pay property tax.
- Capital Gains Tax: Companies are required to pay capital gains tax on the sale of assets at a rate of 10%.
- Taxes on salaries: Companies are required to withhold and pay taxes on salaries paid to employees at a progressive rate.
Cost to Register a Company in Egypt
The cost to register a company in Egypt can vary depending on the type of company, the number of shareholders, and other factors.
However, some estimated costs for a company registering in Egypt include the following:
- Legal fees: Expect to pay between $500 to $3000 for legal fees associated with company registration, including drafting the company’s articles of association and filing the necessary paperwork with the government.
- Capital requirement: Egypt has a minimum capital requirement of EGP 10,000 (about $630) for most types of companies, which must be paid in full before registration.
- Registration fees: Expect to pay around EGP 500 (about $31) for government registration fees, this may vary based on the type of company you are registering.
- Notary fees: Expect to pay around EGP 200 (about $12) for notary fees associated with company registration.
It’s important to note that the above costs are general and may vary depending on the specifics of the Egypt company registration.
Why register a company in Egypt?
There are several reasons why an entrepreneur may choose to register a company in Egypt, including:
- Egypt has a population of over 100 million, providing a large potential customer base for companies operating in the country.
- Egypt has a large and well-educated workforce, providing companies with access to a talented pool of potential employees.
- Egypt has been working to improve its business environment recently, implementing economic and legal reforms to attract foreign investment.
- Egypt has a wealth of natural resources, including oil and natural gas, which can be exploited by companies operating in the country.
- Egypt has a flat corporate tax rate of 22.5% and a flat personal income tax rate of 22.5%.
- The Egyptian government provides a variety of incentives and support programs for businesses operating in the country, including tax breaks, subsidies, and access to financing.
Advantages of Egypt Company Registration
There are several benefits to Egypt company registration, including:
Streamlined and efficient registration process
The process of registering a company in Egypt is relatively straightforward and can be completed quickly with the help of a legal advisor.
Access to a large market
Egypt has a population of over 100 million people, providing companies with a large potential customer base.
Strategic location
Egypt is located at the crossroads of Africa, Asia, and Europe, making it an ideal location for businesses looking to expand into other markets.
Favourable business environment
The Egyptian government has implemented numerous policies to entice foreign investment. To support the growth of small and medium-sized enterprises.
Skilled labour
Egypt has a large and well-educated workforce, providing companies with access to skilled labour at relatively low costs.
Access to resources
Egypt has a variety of natural resources, including oil and gas, making it an attractive location for companies in the energy sector.
Favourable Taxation
Egypt has a flat corporate tax rate of 22.5% and a flat personal income tax rate of 22.5%.
Conclusion
Egypt has a great investment climate which has attracted a lot of investors of all sizes to set up a business in Egypt. Because it has a variety of choices in terms of the types of business structures that are related. Business entities can choose the structure that best suits their requirements.
Eventually, registering a company in Egypt could be a time taking and costly procedure. It’s recommended to hire a professional from Odint Consultancy to guide you through the process of company registration in Egypt.
FAQ’s
The General Authority for Investment and Free Zones (GAFI) is the primary government body responsible for that regulates and facilitating investment in Egypt. It is the entity accountable for registering businesses and companies within Egypt.
The process of establishing an enterprise in Egypt is easy. According to Egyptian laws, a foreign individual or business may conduct business in Egypt via an unincorporated or incorporated company or branch.
CIT stands for corporate income tax in Egypt and can be found at 22.5 percent of the net tax-deductible profits of a business.
The most commonly used form of structure for business that is used by entrepreneurs in Egypt is an LLC. It’s also relatively inexpensive to set up an LLC.
Egypt has enormous potential for businesses looking to expand their business beyond the developed markets that are mature and mature in the northwestern hemisphere.
