Industrial free zones
- Free zone companies in Egypt enjoy a lifetime exemption from income tax, sales tax, import, and export duties;
- There are several free economic zones in Egypt, including: Alexandria Public FZ, Nasr City Public FZ, Port Said Public FZ, Suez Public FZ, Ismailia Public FZ, and Damietta Public FZ;
- Egypt free zone companies with high electrical consumption (steel, cement, and fertilizers) are subject to 20% corporate income tax on their net profits;
- The proportion of foreign workers in Egyptian free trade zone companies must not exceed 25%.
- Egypt’s General Authority for Investment and Free Zones oversees business setups in the free zones, as well as the economic incentives that drive investment in these areas.
Alexandria Public Free Zone (APFZ)
- APFZ is an important industrial hub located in Alexandria, the second largest city in Egypt. APFZ is also close to Nozha International Airport, Borg El-Arab Airport, Alexandria Port and has convenient access to a network of main roads;
- This free zone invites multinationals from the business sectors of food processing, chemicals & petrochemicals, fertilizers, petroleum services, engineering and electronics, and medical equipment manufacturing.
Nasr City Public Free Zone (NCPFZ)
- Situated in Cairo, Egypt’s capital city, NCPFZ has easy access to all road networks;
- This free zone invites multinationals from the sectors of pharmaceuticals, medical equipment, engineering, and electronics.
Port Said Public Free Zone (PSPFZ)
- Located in the North East of the Arab Republic of Egypt at the northern end of the Suez Canal, PSPFZ connects Asia, Africa and Europe by sea;
- This free zone invites multinationals engaged in textile, household equipment, chemicals, logistics and petroleum business.
Suez Public Free Zone (SPFZ)
- SPFZ located near the southern end of the Suez Canal;
- This is a commercial sea port with easy access to 5 ports in Suez and access to a large pool of labor;
- This freezone invites multinationals from the ship maintenance industry, maritime services companies, petroleum businesses, metal products processors/manufacturers, and weaving.
Comparison of Egyptian free zones
|Average annual Industrial space rent per 1000 sq ft||US$42,000||US$42,000||US$42,000||US$42,000|
|Incorporation time||4 weeks||4 weeks||4 weeks||4 weeks|
|How long to open company bank account?||1-2 weeks||1-2 weeks||1-2 weeks||1-2 weeks|
|Quality of Utilities||Excellent||Good||Good||Good|
|Allowed to sign sales contracts with Egyptian Clients||Yes||Yes||Yes||Yes|
|Allowed to invoice Egyptian Clients||Yes||Yes||Yes||Yes|
|Corporate tax payable in Egypt||Yes||Yes||Yes||Yes|
|Corporate bank account||SCB or HSBC||SCB or HSBC||SCB or HSBC||SCB or HSBC|
|Physical office space required||Yes||Yes||Yes||Yes|
|Industrial space availability||Many||Limited||Limited||Many|
|Allowed to import raw materials?||Yes||Yes||Yes||Yes|
|Allowed to export goods?||Yes||Yes||Yes||Yes|
|Wholly foreign owned||Yes||Yes||Yes||Yes|
|Can the entity hire expatriate staff in Egypt?||Yes||Yes||Yes||Yes|
|Do you visit Egypt for incorporation?||Yes||Yes||Yes||Yes|
|Minimum number of directors||1||1||1||1|
|Minimum number of shareholders||1||1||1||1|
|Tax registration certificate required||Yes||Yes||Yes||Yes|
|Individual shareholders allowed||Yes||Yes||Yes||Yes|
|Corporate shareholders allowed||Yes||Yes||Yes||Yes|
|Corporate director(s) allowed||Yes||Yes||Yes||Yes|
|Public register of shareholders and directors||Yes||Yes||Yes||Yes|
|LLC company allowed||Yes||Yes||Yes||Yes|
|Can apply for immigration visas||Yes||Yes||Yes||Yes|
|Annual audited financial statements||Yes||Yes||Yes||Yes|