Starting a business in Egypt: your bridge between Africa, Europe and the Middle East

The One-Person company (OPC) is a simplified limited liability structure suitable for solo entrepreneurs or corporate shareholders seeking a streamlined setup in Egypt. It is legally treated as a form of limited liability company and, following recent legislative changes, can be owned by a single individual or a single corporate entity. An OPC can generally be established inland and used for a wide range of commercial and service activities, subject to sector-specific restrictions. Liability is limited to the company's capital, and the legally mandated minimum capital starts from EGP 1,000 unless further capital is required to participate in specific regulated activities. Governance is straightforward, with the sole shareholder retaining full control over management decisions.

The LLC is the structure of choice for small to medium-sized foreign ventures in Egypt. It can be used inland or in Free Zones, Investment Zones and Economic Zones, protecting investors by limiting their liability to the value of their shares. LLCs allow for 100% foreign ownership in most sectors and require at least two partners (up to a maximum of 50). There is no legally mandated minimum capital for LLCs, except those engaged in specific activities such as importation).

The JSC is the preferred structure for large-scale projects and multinational corporations planning to raise capital or list on the Egyptian Exchange. It can also be used both inland or when setting up your company in the special investment systems listed above. It needs a minimum of three founders and can be 100% foreign-owned. The minimum capital requirement is EGP 250,000 (around $5,300) for closed JSCs, 10% of which must be paid at incorporation. For public JSCs, it is EGP 500,000. JSCs are subject to stricter regulatory oversight and must be managed by a board of directors. The Financial Regulatory Authority has regulations requiring listed companies, banks and non banking financial institutions to have at least 25% representation (or a minimum of two directors) on their board of directors to be women, while broader gender balance is encouraged as a governance best practice.

A branch office allows a foreign company to establish a legal presence in Egypt and conduct specific activities. Unlike an LLC, a branch is generally restricted to executing specific contracts signed with Egyptian entities. It cannot engage in trade or distribution outside the scope of its registered contracts. The parent company remains fully liable for all activities of the Egyptian branch. While there is no minimum capital requirement, it must be managed by a registered manager, whether foreign or Egyptian.

A representative office (or liaison office) is suitable for companies exploring the Egyptian market before committing to a full commercial launch. It is strictly non-profit and non-revenue generating. Its activities are limited to market research, feasibility studies and technical support for the parent company. As it is not permitted to undertake commercial activities or earn revenue, it is not subject to corporate income tax.

Establishing a company in Egypt can involve a range of costs, depending on the entity selected, intended business activity and the location in which you plan to set up in.

We can prepare a transparent and detailed cost breakdown based on your specific requirements. Some of the initial costs involved can include:

• Registration fees: These include the cost of Egypt company registration through GAFI. Fees vary based on your company's capital and include notarisation of the articles of association as well as the final issuance of the Commercial Registration certificate.
• Trade name reservation: Nominal fees paid to GAFI to ensure your business name is unique.
• Chamber of Commerce and syndicate fees: Mandatory annual membership fees for the Federation of Egyptian Chambers of Commerce, along with specific syndicate fees required for the authentication of legal documents. These include paying the Lawyers' Syndicate.
• Office space: A physical commercial address is mandatory for all business entities in Egypt. You must secure a 12-month lease agreement and have it notarised at a local Notary Public office to prove your company's headquarters.
• Tax Card registration: Once your lease is notarised, you will need to register with the Egyptian Tax Authority to receive your Tax Card. This document is your official tax identification and is required for matters such as opening a corporate bank account and issuing legal invoices.
• Visa and residency fees: These costs cover the sponsorship of foreign employees and managers. They include security clearance fees (mandatory for non-Egyptians), medical testing and the issuance of a work permit and residence card, which must be renewed annually.
• Social insurance registration: Fees associated with opening a file at the National Authority for Social Insurance. It is mandatory to register your company and employees.
• Professional and legal fees: Expenses for specialised corporate lawyers or consultants to draft the memorandum of association, handle the application at GAFI, and manage the complex attestation process for foreign parent company documents.
• Capital deposit: While an LLC often has no minimum capital, a JSC requires a minimum of EGP 250,000, with at least 10% deposited during the incorporation phase.

At Hawksford, we can support your company formation in Egypt through a step-by-step process that reflects your specific needs and plans. Our expert team has the capability and knowledge to assist you through your market entry.

We usually begin with a comprehensive consultation to gain a thorough understanding of your business objectives, operational requirements and long-term goals. This can allow us to better provide tailored guidance on the legal structure, jurisdiction and licensing activities for your business.

Following this, we can develop a strategic setup plan outlining the approach for establishing your business in Egypt. This includes advising on Egypt company formation and registration, corporate structuring and any specific legal considerations relevant to your industry and activities.

Our team can then help with the preparation and processing of all required documentation, ensuring accuracy and compliance with Egyptian regulations. This includes drafting legal documents, completing application forms and getting necessary approvals from relevant government authorities.

We can manage the entire incorporation process with GAFI. Our team can handle your Trade Name reservation and secure the Non-Confusion Certificate, ensuring compliance with Egyptian legal standards. We can also oversee the application for your Commercial Registration and Tax Card, coordinating with relevant ministries for sector-specific approvals. By managing communications with the Commercial Registry Authority and the Chamber of Commerce on your behalf, we can verify that all formalities have been met so you can secure your operating licence and begin trading.

We can handle the visa and residency process for you and your staff, ascertaining the submission of documents to the Ministry of Labour and the Ministry of Interior. Our team can coordinate with the Passports, Emigration and Nationality Administration (PENA) and other relevant bodies to secure entry visas, facilitate mandatory medical screenings at approved government labs and finalise the issuance of Egyptian residence permits.

We can help with the opening of a corporate bank account in Egypt, providing guidance on the required documentation and liaising with the bank to facilitate a smooth and efficient process. With our extended portfolio of clients, we maintain trusted relationships with banks.

Beyond the initial setup phase, our team is committed to delivering ongoing support. This can include helping with office setup logistics and other essential services necessary for your business operations.

We can also support you with ongoing accounting and tax compliance, including corporate tax, value added tax (VAT) registration and filing, financial statement preparation and bookkeeping.

When setting up a business in Egypt, the timeline is driven by the GAFI's single window system. While the initial registration can move relatively quickly once the required documentation has been provided, banking and security clearances for foreign owners may require more time. Other factors that can affect the timeline include the legal structure chosen, the complexity of the intended business activity and any licensing requirements attached to it, any additional conditions that may apply if the business is being established in a special zone, and the speed at which the relevant authorities process the required documentation.

We are dedicated to managing the setup process efficiently and providing clients with realistic timelines for each stage. This can help you plan more effectively and prepare for operations in Egypt.

• Chosen legal structure: The choice of jurisdiction and legal structure (inland or special investment system) can influence the timeline.
• Complexity of business activity: Business activities that require special approvals from specific government entities may inherently take longer to process.
• Specific location requirements: Investment Zones, Free Zones and Special Economic Zones have their own specific processing times and requirements, which can affect the overall timeline.
• Efficiency of document processing: The efficiency with which documents are submitted and processed by the relevant authorities can also play a role.

With the right support, your business setup can be easier to manage. As your trusted partner, we can work closely with you to fulfil the requirements for your company incorporation, identify possible hold-ups at an early stage and prepare properly for the deadlines ahead. Close attention to documentation can also help reduce the risk of delays.

• Initial planning and document preparation: Typically 1 to 2 weeks.
• Company registration and licensing: Generally 2 to 8 weeks.
• Visa and security processing: Typically 4 to 12 weeks.
• Bank account opening: Typically takes 4 to 8 weeks.

Alongside these estimated timelines, we also keep you updated as your setup progresses. With clear communication and proactive management throughout, your expansion into Egypt can move forward in a structured way, in line with legal and regulatory requirements.