Egypt Company Formation


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ENGAGEMENT COSTS

US$20,000 to 30,000*

Resident Director/Shareholder fee
US$15,500 **

Company deregistration
US$3,450

* Depends on corporate structure and professional services required by our clients.

** Excludes US$3,300 refundable deposit.

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Egypt company incorporation gives access to an economy focused on agriculture, manufacturing and tourism. Company formation in Egypt can be difficult for foreign investors but not impossible. Following are points to help establish if Egypt company formation will assist in reaching your business objectives.

Advantages of Egypt Company Registration

Through recent reforms, Egypt company formation allows 100% foreign ownership in certain fields; most notably industry & mining, tourism, real estate development, maritime transport, software design, and electronics production.

Egypt offers competitive corporate tax rates. There are variations between industries, but is generally 20%. Some industries are also tax exempt, for instance - agriculture and tourism related companies. Through proper tax planning, Egypt company formation can be an effective business platform for entrepreneurs.

Incorporating a company in Egypt is cost-effective, as there are no minimum capital requirements for limited liability companies (LLC); a recent move by the Investment ministry to encourage investors to setup small and medium-sized enterprises.

Egypt is a good location for companies with manufacturing needs. A young population provides relatively cheap and effective labour. Manufacturing is the second largest industry in Egypt at 13%, behind only agriculture. The government also has grants to assist with the costs of extra training required.

The General Authority for Investment and Free Zones (GAFI) is the governing body on foreign investment. They assist international investors facilitate their investments within Egypt. The GAFI was founded with the intent of providing a one-stop-shop, rather than the previous process that involved interacting with up to 25 different Ministries to form a company.

There are specific free zones providing a variety of incentives and benefits. One such example is the North West Suez Special Economic Zone. Providing 5% flat rate on personal income tax, 10% corporate tax rate, as well as standard infrastructure.

Investors are free to repatriate the capital and profits derived from Egypt.

Following Egypt company formation, Healy Consultants will open a corporate bank account in the jurisdiction of your choice. Healy Consultants works with internationally recognised banks such as HSBC, Standard Chartered and Citibank to provide corporate bank account services.

Disadvantages of Egypt Company Registration

At least one of the managers for incorporated companies that are wholly foreign-owned needs to be Egyptian, it is not necessary that he is a shareholder.

Egypt is negatively perceived as the 118th least corrupt country in the world, according to the 2012 Corruption Perceptions Index by Transparency International, a global measure of corruption amongst public officials and politicians. Despite the low rank, Egypt has been a top improver in the Doing Business Survey, with extreme reforms promoting substantial domestic progress. Drastic improvement in six of the ten considered criteria is a positive for Egypt amongst other Middle Eastern and African countries.

According to the 2012 Doing Business Survey by the World Bank, Egypt is the world's 109th easiest place to do business. The survey measures factors including business startup procedures, time, cost and minimum capital required to start a business.

With a large gap between the poor and the rich in Egypt, wealth is maintained to a limited few, causing a significant portion of the population to experience undesirable living standards. Egypt ranks 116th in the Human Development Index.

Egypt is poorly ranked as the world's 107th most competitive economy in the World Economic Forum's Global Competitiveness Report 2012-2013.

Success tips for doing business in Egypt

Your joint venture partner or Egypt shareholder must not merely be a nominee for the sake of meeting the rules of foreign company incorporation. You should choose a partner that actually brings a lot to the table, including local knowledge your business would need in Egypt;

To optimize the success of your new business venture in Egypt, Healy Consultants recommends your Firm i) complete a feasibility study ii) prepare a detailed business plan iii) communicate with the Egypt Chamber of Commerce iv) speak to your local embassy in Egypt and v) communicate with Healy Consultants Clients who successfully launched their business in Egypt;

Foreign companies should be aware i) Egypt statistics and market data are usually imprecise ii) transactions tend to take longer than expected iii) more frequent and longer market visits are required, at least initially iv) complex business procedures are common;

An essential factor in starting a business in Egypt is to thoroughly research the business sector you are planning to invest in. Healy Consultants recommends our Client prepare a detailed business plan including an extensive market study and evaluation of competitors;

Contact Us

For more information on Egypt company formation, contact email@healyconsultants.com or phone us at (+65) 6735 0120.

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