Egypt Company Incorporation

Egypt company incorporation can be accomplished via a variety of legitimate corporate entities. Egypt Incorporation gives access to business within the Middle East / Africa region and some strong economic sectors with Egypt.

1.

Limited Liability Company (LLC) - Requirements include:

i)

Minimum of 2 shareholders and a maximum of 50 shareholders.

ii)

Maintain a Register of Partners in their head office, must include: names, nationalities, domiciles and occupations of the partners, no. of shares owned by each partner, amount invested by each and the assignment/transfer of shares and related relevant information.

iii)

Company name: must incorporate the object of the company, may include names of one or more partners/shareholders and the words “Limited Liability Company” must be included.

iv)

Minimum share capital required is £E 50,000.

v)

At least one manager must be of Egyptian nationality, however do not need to be shareholders of the incorporated company.

vi)

Incorporated company cannot be involved in: insurance or banking (saving, depositing or investing) of other peoples funds.

Joint Stock Companies (JSC) - Requirements include:

i)

Company capital must be divided into equal value shares.

ii)

Liability of shareholders is limited to the shares subscribed to them.

iii)

Must have at least 3 founding shareholders, with at least 25% of the cash equity of the company must be paid up prior to incorporation.

iv)

Minimum share capital is £E 500,000, if the JSC offers shares to the public and £E 250,000, if only private shares.

v)

Managed by a Board of Directors; must be a minimum of 3 directors and an ultimate odd number of directors.

vi)

The majority of the Board of directors must be Egyptian nationals. This requirement does not apply to JSC’s incorporated under the investment law, whose objectives are specified in Article 1.

vii)

Directors are required to own a specified number of shares, which must be deposited in an account, where they will remain throughout his tenure, as a guarantee of his management. The value of the shares must be at least £E 5,000.

viii)

Employment must follow the Commercial Companies Law: especially where a certain percentage of Egyptian personnel must be hired, Foreigners are allowed to be hired if it is impossible to find the requisite number of qualified Egyptian employees; requires Ministerial approval

i)

Made between 2 or more partners.

ii)

General partnerships: All partners are considered as traders and are evenly responsible to meet all liabilities or obligations without any limits.

iii)

General partnerships should have a trade name derived from the names of one or more of its partners.

iv)

Once partnership agreement is complete the following needs to be done to finalize registration:

a)

A copy of the partnership deed is published at the Court of First Instance where the partnership head office is located.

b)

The partnership deed is published in two daily newspapers of wide circulation

c)

The partnership deed is registered in the Commercial Register

d)

After completing the above registration, the partnership can start its commercial activity.

v)

Limited partnerships have at least one of the partners as a general partner who is active and is considered a trader with full responsibility to meet liabilities or obligations without any limits. Other partners can be inactive and their liability is limited to the amount of capital they invested into the company.

vi)

Foreigners can become partners, however are not allowed to manage the partnership or sign on its behalf, and their share in its capital cannot exceed 49%.

vii)

No minimum capital is required.

viii)

Each partner is required to enroll themselves in the state social insurance system.

ix)

Registration is complete once the deed between partners determining capital, share of each partner, the objective/activity of the company, the duration of company and the appropriation of its profits or losses is agreed upon and signed.

Egypt company incorporation can also be accomplished via the following options:

i)

Commandite Company Limited by Shares (CCLS)

ii)

Engaging a Commercial Agent

iii)

Establishing a Representative Office

iv)

Branch Office

v)

Sole Proprietorship

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