11 steps to incorporating in Egypt in 2022
The incorporation process for an Egypt limited liability company takes 15 weeks on average. The following is an overview of the typical engagement procedures:
- Client due diligence and engagement: Prior to company incorporation in Egypt, our Client settles our fees and signs the Healy Consultants Group’s engagement letter; Our Client also supply scans of the required due diligence from our Client, including passport copies, proof of address, and details of the company’s intended activities in Egypt;
- Engagement planning: Healy Consultants Group provides our Client a detailed engagement plan, outlining Egypt expected incorporation steps and timelines and thus minimizing unwanted surprises and meeting Clients’ expectations;
- Document preparation: The exact corporate structure is agreed upon with our Client. Healy Consultants Group then drafts and sends the POA and other incorporation forms to our client. Thereafter, our client will i) certify them before a local public notary, ii) legalizes them at the Egyptian Embassy in our Client’s country of residence and iii) courier them to Healy Consultants Group office;
- Office premises: before the incorporation application can be submitted to the Egyptian Government, Healy Consultants Group will assist our Client locate and sign a 12 months’ lease agreement for office premises;
- Appointment of an auditor: our Client must identify and appoint an auditor. Unless we hear otherwise from our Client and to expedite the process, Healy Consultants Group will appoint our preferred auditor. No additional fee for this appointment;
- Incorporation and security check application submission: upon receipt of the attested documents from our Client, Healy Consultants Group submits a complete quality company incorporation application together with a security check application to the Egyptian General Authority of Investment and Free Zones (GAFI); Post approval, the same is submitted to be submitted to Commercial Registry Authority and Chamber of Commerce. The security check on each individual director and shareholder will run simultaneously with the incorporation process. This process can take up to four months! However, after the company is fully registered, our Client can start conducting business as usual;
- Company registration finalization: a Certificate of registration is issued. Our Client can now legally enter into contractual agreements but can only issue invoices in Egypt after tax registration is complete.
- Tax registration: Healy Consultants Group commences the tax registration including registering for i) income tax and ii) VAT with the Companies Registry with the Ministry of Finance. This is a time-consuming process and consequently, our client should expect the entire process to take a minimum of 3 weeks to complete;
- Social security and labour file registration: It is mandatory for each newly registered entity to register for social security, open the labour file and monthly contribute to social security for the partners of the company, until the company hires employees;
- Corporate bank account opening: Healy Consultants Group will prepare a detailed quality business plan to support the multi-currency corporate bank account opening with a leading international or local bank such as internationally recognized banks such as HSBC, Standard Chartered and Citibank, or local banks including Egypt National Bank and Egyptian Gulf Bank;
- Engagement completion: Healy Consultants couriers a company kit folder to our Client’s preferred international address, containing the following corporate documents including original corporate documents, unopened bank correspondence and a Client feedback survey to assess the quality of our Firm’s Egypt business incorporation services.
Frequently asked questions
What is the business entity mostly most frequently used to incorporate a small business in Egypt?Entrepreneurs willing to start a small business in Egypt usually choose to incorporate a limited liability company. They will need to found a partner as a minimum of two founders are required. Such business entity is however inexpensive to establish as Egypt authorities do not request a minimum amount of capital. However, kindly note that not all industries are open to company creation by a foreigner, and that the manager of an Egypt LLC must be a national.
Is there any wholly foreign business entity available in Egypt?Yes, all business entities that can be incorporated in Egypt can also be 100% foreign-owned, without prior authorization from the government. Restrictions to foreign investment depends on the industry of incorporation, rather than the type of company incorporated.
I want to raise funds in Egypt to develop my business, should I start a limited liability company?No, Healy Consultants recommends our Clients with financing needs to incorporate an Egypt joint stock company. Such type of business entity can indeed freely issue new shares, thus allowing our Clients to conveniently find partners to invest in their business, in return for equity.
Why should I incorporate a company in Egypt?Business incorporation in Egypt allows our Clients to tap into the Africa’s 3rd largest consumer market by population, after Nigeria and Ethiopia. Healy Consultants is confident that Egypt is a promising market both to manufacture and sell basic consumer goods, provided the country stabilizes politically.