Egypt company registration

Egypt company registration

DOING BUSINESS IN EGYPT

Healy Consultants can help you to start and expand your business in Egypt, efficiently and effectively. Our services include i) Egypt company registration ii) government license registration iii) business bank account opening iv) employee recruitment v) employee visa strategies and vi) office rental solutions.

SummaryLLCFree Zone JSCJSCBranchRepresentative OfficeNominee Fast Solution
Best use of company?All products and servicesClose a customer deal nowManufacturing and export tradingTo secure public fundingProfessional servicesMarketing & research
How soon can you invoice Clients/sign sales contracts?2 months2 months2 months3 months3 months1 month
How soon can you hire staff?2 months2 months2 months3 months3 months1 month
How soon can you sign a lease agreement?2 months2 months2 months3 months3 months1 month
How long to supply corporate bank account numbers?3 months3 months3 months4 months4 months2 months
How long to supply company registration/tax numbers?2 months2 months2 months3 months3 months1 month
Corporate tax rate on annual net profits?22.5%10.0%22.5%22.5%NA22.5%
Limited liability entity?YesYesYesYesYesNo
Government grants available?YesYesYesYesNoYes
Government approval required for foreign owners?YesYesYesYesYesYes
Resident director/partner/manager/ legal representative required?YesYesYesYesYesYes
Minimum paid up share capital/ security deposit?US$1VariesUS$14,000NoneUS$1,000US$1
Can bid for Government contracts?YesYesYesYesNoYes
Corporate bank account location?HSBC EgyptNBE EgyptBanque MISR EgyptCIB EgyptAlex Bank EgyptSCB Egypt
Can secure trade finance?YesYesYesYesNoYes
VAT payable on sales to local customers?14%14%14%14%No Local Sales14%
Average total business set up engagement costs?US$20,600US$20,750US$20,750US$21,900US$21,90040,100
Average total engagement period?3 months3 months3 months4 months4 months4 months

See full table

Accounting and tax considerationsLLCFree Zone JSCJSCBranchRepresentative OfficeNominee Fast Solution
Statutory corporate tax payable?22.5%10.0%22.5%22.5%NA22.5%
Legally tax exempt if properly structured?NoNoNoNoNoNo
Group HQ tax incentives?YesYesYesYesNoNo
Must file an annual tax return?YesYesYesYesNoYes
Must file annual financial statements?YesYesYesYesNoYes
Must appoint an auditor?YesYesYesYesNoYes
Access to double taxation treaties?YesYesYesYesNoYes
Withholding tax on payments to foreign shareholders?10%10%10%10%None10%
Company RegistrationLLCFree Zone JSCJSCBranchRepresentative OfficeNominee Fast Solution
Resident director/partner/manager/ legal representative required?YesYesYesYesYesYes
Minimum number of shareholders/partners?223Parent CompanyParent Company2
Maximum shareholding for foreigners?100%100%100%100%100%100%
Minimum statutory paid up share capital/security deposit?US$1VariesUS$14,000US$275US$1,000US$1
Security deposit to be kept with Government?NoNoNoYesYesNo
Shelf companies available?YesYesYesNoNoYes
Time to incorporate a new entity?4 weeks4 weeks4 weeks6 weeks6 weeks2 weeks
Can easily convert to a PLC?YesYesYesNoNoYes
Public register of shareholders and directors?YesYesYesYesYesYes
Can have preference shareholders?YesYesYesNoNoYes
Business ConsiderationsLLCFree Zone JSCJSCBranchRepresentative OfficeNominee Fast Solution
Good entity for trademark registration?YesYesYesYesNoYes
Can secure an import and export license?YesYesYesNoNoYes

Sponsorship by a local citizen required?No
Our Client needs to travel to Egypt for business set up?No
Temporary physical office solutions available?Yes
You need a local resident as bank signatory?No
Can be wholly foreign owned?Yes
The entity will likely be regulated by?GAFI
Minimum number of directors/managers?1
Monthly VAT reporting to the Government?Yes
Must sign an office lease agreement during incorporation?No
Shareholders & directors documents to be attested/translated?Yes
Each foreign director needs a personal income tax number?No
Foreign director needs a residence visa?No
Maximum number of staff allowed?Unlimited
Expatriate to local staff ratio?Foreign labour may not exceed 10% of total workforce
Can secure residence visa for business owner?Yes
Other useful information
What will be included in my customer sales invoice?Click link
This country has signed free trade agreements?Yes
This country is a member of WIPO/TRIPS?Yes
This country is a member of the ICSID?Yes
Average custom duties suffered?0.07%
Government foreign investment approval required?Yes
Average monthly office rental? (US$ per sq m)US$35
Minimum statutory monthly salary?US$174
Average monthly US$ salary for local skilled employees?US$941
US$ deposit interest rate? (1 year average)1.10%
Overseas remittance currency controls?Yes
Banking considerations
Multi-currency bank accounts available?Yes
Corporate visa debit cards available?Yes
Quality of e-banking platform?Good
Crowd funding available in this country?Yes

Press the link headings below to read detailed, relevant, up to date information.

  • Advantages and disadvantages

    Advantages of Egypt company registration

      Egypt business advantage
    1. Registering a wholly foreign-owned company in Egypt is possible and can be done within 2 months. A Egypt LLC entity can be set up with only i) one Egyptian director, ii) two shareholders of any nationality, iii) a legal registered address and iv) US$1,000 of capital, which however does not have to be fully paid-up before incorporation;
    2. Although Arabic is the official language in Egypt, the majority of businesspeople are proficient in English. Consequently, foreign investors can easily communicate with Egyptian business professionals;
    3. Registering an Egyptian company operating in agriculture may qualify the company for a 10 year exemption from income tax;
    4. Our Clients who start an Egypt company will benefit from an ample supply of cheap labor. The average monthly labor cost ranges from US$65 to U$200.

    Disadvantages of Egypt company registration

    Before registering their company in Egypt, foreign entrepreneurs should be aware of the following challenges with which our Egyptian business registration specialists will assist:

    1. Under Egyptian Investment Law, foreign investors are not eligible to i) import goods for the purpose of trading in Egypt or ii) act as a commercial agent;
    2. Business registration in Egypt is risky because of an unstable political situation. The country has been on the edge of civil war since the 2011 revolution and is currently ruled by a military commander. New riots are not to be ruled out and, in such context, foreign investors may find it difficult to protect and maintain their business interests in Egypt. The Sinai region remains particularly problematic;
    3. The corporate tax rate in Egypt is 22.5%. However, companies operating in oil production are subject to a higher tax rate of 40.55%;
    4. Egypt imposes a withholding tax of 10% on dividends. However, this is reduced to 5% for shareholders owning more than 25% of the company’s shares. These rates may be reduced under double taxation avoidance treaties – Healy Consultants can help your firm to plan its tax structure for investing in Egypt;
    5. In accordance with the Egypt Companies Law 159/198, every Egyptian company requires one Egyptian national director. If required, Healy Consultants will be happy to act as passive professional nominee director for your Egypt LLC. To ensure your assets are fully protected, the nominee will not be a bank signatory nor will have an active role in daily corporate activities.
    6. Running a business in Egypt can be complex and frustrating. According to the 2016 Doing Business Survey by the World Bank, Egypt is ranked as the world’s 131st easiest place to do business. However, it places 73rd for ease of starting a business, down from 69th the year before;
    7. Due to the unstable political system and cheap labor costs, a brain drain has occurred due to large number of highly-skilled Egyptian workers have left the country to seek higher-paid jobs overseas. Investors may have difficulties in hiring qualified staff for their companies;
    8. Sporting events in Egypt can cause severe traffic disruptions and violent riots. This may obstruct business logistics and delay the speed of operations;
    9. Registering a subsidiary in Egypt is a long process. Construction permits may take 6 months for approval and property registration process can take up to 2.5 months.
    10. It is mandatory for every Egyptian company to appoint a company independent auditor during company incorporation to annually audit the entity’s financial statements. Most of our Clients appoint Healy Consultants’ preferred auditor for company incorporation without an additional fee. The auditor’s annual fees will be payable directly and independently to the auditor at the end of each year. The estimated of these fees are US$4,500 per annum;
    11. Unfortunately, all shareholder and director information must be officially translated into Arabic, notarized and attested by the Egyptian embassy in their country of origin. In addition, all Egypt corporate documents will be in Arabic. If required, Healy Consultants will be pleased to translate all Arab company documents into English and vice versa
    12. Together with company incorporation, it is necessary for the Egyptian government to conduct a security check on each individual director and shareholder. This process can take up to 3.5 months! However, after the company is fully registered, your Firm will start conducting business as usual;
  • Best uses for an Egyptian company

    North African expansion

    1. Setting up an Egyptian is a good way to ride the growth in the north African economy, which is recovering from a period of political instability. Thanks to the country’s rich cultural history, tourism is a popular business for foreigners to establish in Egypt.

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Company registration

  • Time to incorporate: Four weeks
  • Cost to set up: US$20,600
  • Minimum capital: US$1,000
  • Physical office required: No

Required appointments

  • Shareholders: 2
  • Manager: 1
  • Company secretary: Yes
  • Resident manager: Yes

Key facts

  • Corporate tax rate: 22.5%
  • Corporate tax base: Worldwide
  • Shelf companies: No
  • Main company type: LLC

Frequently asked questions

Contact us

For additional information on our business registration services in Egypt, please email us at email@healyconsultants.com. Alternatively please contact our in-house country expert, Ms. Chrissi Zamora, directly:
client relationship officer - Chrissi
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