Egypt client case studies in 2024

• Indian MNC sets up Egyptian subsidiary

  Background

  Our Client, an Indian business intelligence MNC, approached us in September 2020 with a request to set up a local entity in Egypt as part of our Client’s company’s overseas expansion plan.

  After multiple emails, video and phone calls, our Client settled Healy Consultants Group’s engagement fees (click link) and signed our engagement letter (click link). Unfortunately, we were unable to have a face-to-face meeting with our multi-national Client because of Covid travel restrictions.

  Engagement planning

  • Healy Consultants Group emailed our Client a detailed project plan (click link), outlining i) total expected engagement fees ii) total engagement period iii) the weekly and monthly deliverables and iv) expected engagement problems and solutions.
  • The above document will help our Client plan the date they will legally be able to conduct business in Egypt. This document also minimises engagement surprises.
  • Together with our Client, our team and I agreed i) the optimum Egyptian corporate structure including shareholders and directors ii) the multi-currency corporate bank account strategy including bank signatory iii) the office premises plan including lease agreement and virtual office address and iv) staff recruitment goals including employment visas.
  • Simultaneously, we explained to our Indian Client the i) Egyptian accounting and tax considerations ii) legal and compliance considerations iii) regulatory license exemptions and iv) monthly & quarterly government reporting including payroll and sales tax.
  • In the meantime, our Client supplied our in-house Legal and Compliance Department with the required Know Your Customer due diligence documents.

  Company registration

  • The Egyptian government conducts security checks on each individual director and shareholder, and this requirement applies to corporate shareholder(s). Because our Client would like to appoint a corporate shareholder for the new entity, they were required to provide the company’s constitution document to identify the individual company shareholder who would be subject to a security check.
  • The above process became time consuming, as the corporate shareholder has a rather complex company structure. To facilitate the security check, Healy Consultants Group suggested our Client keep the corporate structure simple, including appointing an individual shareholder along with the corporate shareholder.
  • To comply with Egyptian statutory requirements, and to facilitate company registration, Healy Consultants Group provided a local registered office address to our Client. We also offered to assist our Client to recruit local staff or apply work visas for foreign employees to reside in Egypt. However, our Client confirmed such assistance may only be required at a later stage.
  • After securing our Client’s agreement, Healy Consultants Group assisted with the drafting of incorporation forms and relevant corporate documents (like Power of Attorney) based on our Client’s proposed corporate structure including by-laws, for our Client’s confirmation and signature.
  • Our team then assisted our Client to translate the relevant documents into Arabic, before submission to GAFI.
  • Despite no minimum issued share capital being required for Egypt company registration, our Client decided to set US$25,000 as the initial paid-up share capital of the new entity.
  • Depending on the proposed business model, our Client’s Egyptian LLC is not required to appoint an individual director ordinarily resident in Egypt. Because our Client’s corporate shareholder has a complex structure, they decided to appoint their Swiss manager as the individual shareholder for the Egypt LLC.
  • After submitting the application, Healy Consultants Group advanced the bank account opening application. Specifically, my team and I submitted a multi-currency corporate bank account application to five banks in Cairo, including HSBC.
  • Within four weeks, we received a certificate of incorporation from GAFI, including legal corporate documents (in Arabic), including by-laws, the commercial register and corporate tax registration card.
  • With our Client’s approval, Healy Consultants Group translated all legal corporate documents into English.
  • Throughout the business set up period, my team and I supplied weekly detailed engagement status updates to our Client, advising progress, and problems and solutions.
  • Following successful registration of the Egypt LLC, our Client can now legally operate in Egypt. Our Client’s business activity does not require special regulatory license.

  International corporate bank account opening

  • While approaching multiple local and international bank branches to open a local corporate bank account, our Client mentioned they have existing corporate banking relationship with HSBC International.
  • Healy Consultants Group approached HSBC to secure a welcome email, inviting our Indian Client to submit a formal multi-currency corporate bank account application for their Egyptian subsidiary.
  • Because our Client already has an international corporate profile with the bank, HSBC Cairo agreed in writing to advance the multi-currency corporate bank account opening process without bank signatory travel.
  • As a back-up solution, my team and I approached two other Cairo-based banks to also secure an e-mail inviting our Client to submit a multi-currency corporate bank account application.
  • My team and I agreed Visa debit card and e-banking access, including currencies.
  • Healy Consultants Group assisted our Client to i) provide additional information to satisfy the bank’s queries ii) pre-fill bank forms and iii) arrange a conference call with the bank to finalise and submit a complete quality bank account opening application.
  • Following HSBC review and approval, our Client wet-signed all bank forms and courier returned the same to the bank. Thereafter, HSBC confirmed receipt of complete bank account opening forms and advanced with the application.
  • Healy Consultants Group shared with our Client a plan of the multi-currency corporate bank account opening process.
  • Within four weeks of receipt of complete bank account opening forms, HSBC Cairo approved the multi-currency corporate bank account application and emailed the bank account numbers direct to our Client.
  • Two weeks later, HSBC mailed e-banking documents to our Client. Immediately after that, our Client deposited US$ to the local corporate bank account to meet the minimum banking requirements.
  • Both bank account numbers and e-banking access were sent directly to the account signatory by the bank. See this page for more information on Egypt corporate banking.

  Engagement completion

  • Draft template sales invoice
  • Certificate of Incorporation, Commercial Register, and Articles of Association
  • Corporate tax registration card
  • Monthly & quarterly Government reporting including payroll and sales tax
  • Articles of Association
  • Satisfaction questionnaire
  • Professional reference
  • Annual legal, accounting and tax obligations in year 2.

• Egyptian subsidiary of a Dubai manufacture and supplier of valves, fittings and fire hydrants

  Background

  Our Client, a Dubai entity headquartered in Denmark, approached us end- 2020 requesting company set up in Egypt. Fortunately, and despite Covid, we were able to have a face-to-face meeting with our multi-national Client in our Dubai office.

  After multiple emails and video calls and phone calls, in July 2021 our Client settled Healy Consultants Group’s engagement fees (click link) and signed our engagement letter (click link).

  Engagement planning

  • Together with our Client, my team and I agreed i) the optimum Egyptian corporate structure including shareholders and directors and ii) the multi-currency corporate bank account strategy including bank signatory and iii) the office premises plan including lease agreement and virtual office address.
  • Thereafter and to enable our Client plan in advance, Healy Consultants Group emailed our Client a detailed project plan (click link), mapping out the step by step of this engagement including timelines and possible engagement challenges and solutions.
  • In the meantime, our Client supplied our in-house Legal and Compliance Department with the required Know Your Customer due diligence documents.

  Company registration

  • Healy Consultants Group drafted incorporation forms, including Power of Attorney and Board Resolutions and prepare a checklist of documents for our Client’s notarization and attestation in the Egyptian embassy in Egypt.
  • While our client attested the documents, Healy Consultants Group i) assisted our Client to find physical office premises and ii) supplied detailed KYC documentation on our preferred passive nominee national shareholder, needed to satisfy the import license regulatory requirements in Egypt.
  • Upon receipt of the legalized documents, Healy Consultants Group completed attestation in the Ministry of Foreign Affairs in Egypt. Immediately after submitted i) an application for company registration to GAFI and ii) an application for security checks of the foreign director and shareholder.
  • There is no minimum legal capital requirements in Egypt. However our Client plans to secure an import license in the future, and hence, they decided to set US$130,000 as their initial share capital to meet one of the import license criteria.
  • Our Client was in urgent need to secure the certificate of incorporation for this entity, therefore, Healy Consultants Group offered our Client to settle additional Government VIP fees to expedite the company registration application. Luckily within 3 days, the company was fully registered. 2 days after, the government completed tax registration. From this date, our client could start business operations, including hiring employees.
  • Our Client has a long lasting professional relationship with HSBC worldwide. Therefore they did not need Healy Consultants Group assistance for the same.
  • Throughout the period of the business set up engagement, my team and I supplied weekly detailed engagement status updates to our Client, advising progress and problems and solutions.

  Engagement completion

  • We explained to our UAE Client the i) Egyptian accounting and tax considerations and ii) legal and compliance considerations and iii) regulatory license exemptions and iv) monthly & quarterly Government reporting including payroll and sales tax.
  • Couriered a company Kit containing the original of the company documents together with a satisfaction questionnaire.
  • And requested our Client for a professional reference.

• Multiple Country Engagement- Egypt Company Incorporation

  Background

  Our Client contacted Healy Consultants for assistance to set up a company in Egypt. Our Client is an International University based out of Cyprus that provides tertiary education to potential students all over the world. The main campus of the University is in Cyprus and it is a globally recognized tertiary education provider.

  Engagement planning

  Healy Consultants commenced this engagement by confirming the corporate structure and legal requirements for the Egyptian entity. Healy Consultants recommended that the Client set up an LLC in Egypt.

  Every entity in Egypt requires at least one director that is resident in the country. Fortunately, our Client knew this person and did not require our professional passive nominee resident director services.

  Egypt LLC Incorporation

  The first step towards this company incorporation process was preparing the PoA through which the client authorizes us to register the company on their behalf and attesting the same together with the company’s corporate documents in the Egyptian embassy in Cyprus. Our client took 5 weeks to attest these documents. Unfortunately, the nearest Egyptian embassy was in a different city, so our Client had to courier the same to the embassy and wait until their return.

  Upon receiving the Clients’ due diligence and original attested documentation in Egypt, we prepared the Memorandum and Articles of Association and Minutes of Meeting in Arabic and submitted the company registration package to the Ministry of Industry and Trade. Simultaneously, to the incorporation process, a security check commenced. The security check can take up to 6 months. Fortunately, this process runs independently from the company registration process and therefore does not interfere or delay the same.

  10 days after submission of the registration package, we received pre-approval from the Ministry of Industry and Trade and proceeded to open a corporate bank account with an Egyptian bank (see below). A temporary bank account was opened within 1 week for our Client to deposit the paid-up share capital amount of US$1,000.

  The bank confirmed receipt of the funds and issued a certificate of deposit. We submitted the same to the Ministry of Industry and Trade and 15 working days later, we received the certificate of registration.

  Healy Consultants proceeded to register the company with the Egyptian Tax Authority and obtained a unique tax identification number within 1 week. The company was fully incorporated as a legal entity in Egypt and could now conduct business.

  Corporate bank account opening

  Healy Consultants opened a corporate bank account with an Egyptian bank in Cairo. Each Egyptian entity must open a temporary bank account and deposit a share capital of approximately US$1,000 before the company is fully registered and the certificate of registration is issued. Opening such account was easy and straightforward.

  After the certificate of registration was issued, we converted the temporary account into an operational corporate bank account. This was challenging and took us over 3 weeks to complete. Unfortunately, the bank asked the client to travel for a 1 hour interview.

  Luckily, Healy Consultants negotiated with the bank to waive the requirement of the Client’s presence in Egypt. Instead, the Client visited a branch of the Egyptian Bank in Turkey, where the Client was resident at that moment.

  The corporate bank account was successfully activated 2 weeks after the client visited the branch in Turkey.

  Engagement Completion

  We couriered a company kit to our Client and received excellent feedback with regards to the services provided by Healy Consultants.

  For more information on this engagement and/or to obtain the contact details of our Client, please contact our Senior Manager of Client Engagements, Ms. Chrissi Zamora.