Egypt Company Formation


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ENGAGEMENT COSTS

US$50,000 to 60,000*

Local sponsor 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.

Egypt company formation 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 Formation

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.

Egypt company formation 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 Formation

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 112th least corrupt country in the world, according to the 2011 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 2011 Doing Business Survey by the World Bank, Egypt is the world's 94th 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 94th most competitive economy in the World Economic Forum's Global Competitiveness Report 2011-2012.

Contact Us

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

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