The state of Egypt is located in North Africa and part of the Sinai Peninsula in Asia. The Republic has very long borders with countries such as Israel, Sudan and Libya. It has access to the Mediterranean and Red Sea. Both seas are connected by the Suez Canal, which is of strategic importance for international trade. It is worth noting that one of the longest rivers in the world, the Nile, flows through Egypt. Egypt's subsoil contains reserves of oil, liquefied gas and iron ore. Much of the country is desert.

The Egyptian pound is the official currency of Egypt. Arabic is the state language.
Egypt is active in foreign trade. The main importers of goods from Egypt are the UAE, Italy, the US, Turkey and Germany.
Egypt's foreign policy is aimed at dynamic integration into the international economy and politics. Egypt has membership in international organisations such as the African Development Bank, the Arab League, IAEA, OAPEC, WIPO, WTO, UN etc.
The company's incorporation in Egypt today sounds very promising.

6 simple steps to purchase a company

  1. choosing a country

  2. choosing a bank

  3. payment (by any method)

  4. sending documents

  5. company registration

  6. bank account opening

Main advantages

Out of the the advantages that are open to founders when registering a company in Egypt, it is worth noting in particular:

  1. Possibility of setting up your own business without significant investment.
  2. Flexibility of the tax system.
  3. Availability of preferential conditions for enterprises engaged in the following activities
    1. Development and improvement of the fertility of abandoned areas;
    2. Raising livestock and farming;
    3. The industrial complex of mineral extraction works on the discovered deposits;
    4. Investment in the tourism sector with improved housing and leisure facilities.
  4. Availability of tax exemptions for legal entities:
    1. Non-profit organisations engaged in social, scientific, sporting or cultural activities;
    2. Non-profit educational institutions.

Type of legal entity

According to current Egyptian legislation, the incorporation of such companies is available to foreign persons:

limited liability company (LLC);

The number of participants in a limited liability company cannot be less than two and cannot exceed fifty. The minimum authorised share capital for a limited company is £50,000. Foreigner people may own 100% of the share capital of a limited liability company. The company is allowed to participate in all permitted areas of business, with the exception of banking, stock exchange and insurance.

joint stock company;

An Egyptian joint stock company is similar in its main characteristics to other similar companies existing in other countries of the world. It is a company, the capital of which is divided into shares, the liability of each shareholder being limited to the value of the shares. A joint stock company must have at least three founders. The minimum issued share capital of a private limited company is E£250,000. The company can participate in any field of activity, including banking, insurance and stockbroking.

limited partnerships by shares.

Participants have unlimited liability for the company's obligations. A company must have a Supervisory Board consisting of at least three people. The minimum share capital required for a limited partnership in shares is E£250,000.

Legal Entity Features:

We shall take a look at some features of the incorporation procedure in Egypt:

Joint Stock Company

The founders must submit the following documents to the Company department:

  1. List of names of the founders
    1. Foreign national founders must submit documents for authentication.
    2. Founders who are corporations must submit a resolution from each legal entity.
  2. The Memorandum of Association
  3. A payment receipt stating that each founder has paid at least 25 per cent of the registered capital.

The company department shall submit the application and attach documents to a special committee to create a company that will review the application and documents.

Once the application has been approved, the company shall be deemed to be registered.

limited liability company

The company name may include the names of one or more partners. In addition, the words "Limited Liability Company" must be included in the title.

The full name, date of birth, address and nationality of all directors shall also be required. Full name and address of all shareholders. All documents are stored in the Commercial Register after registration. Each LLC must have a registered office in Egypt in order to accept legal notices.

Taxation Features

The state of Egypt has the following taxation features:

  1. All companies are subject to income tax at the standard rate of 22.5%. The exception is oil-producing groups of companies, for which the rate is 40.55%.
  2. The standard VAT rate is 14%. The standard rate applies to all goods and services, with the exception of machinery and equipment used for the production of goods or the provision of services, which are subject to 5% VAT.
  3. An income tax of 10% is levied on dividends paid by Egyptian companies to non-resident corporate shareholders.
  4. Royalties are taxed at 20%.

The above does not constitute tax or legal advice for your specific situation.

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