Business entities in Egypt in 2021

Healy Consultants will assist our Clients with incorporating the optimal corporate structure for their company. There are several ways of doing business in Egypt, the most common being through the setup of a limited liability company. However, Our Clients may alternatively setup an Egypt joint stock company, which will give their business a marketing edge in the country and abroad. Foreign multinationals may also contact our Firm in order to establish a branch office or a representative office in Egypt.

Wholly foreign owned entities

Egypt business setup can only be 100% foreign-owned for certain industries such as mining, tourism, real estate, maritime transport, software design, and electronics production. Starting a business with activities such as importation or investment in Sinai area require approval from the relevant Egyptian authorities, and therefore are not eligible for 100% foreign ownership;

Limited liability company

A limited liability company (LLC) is a common entity used to set up a small business in Egypt. Egypt company setup requirements allow LLCs to engage in any commercial or industrial activity. At business setup, our Clients must appoint i) at least two shareholders and ii) at least one manager who must be an Egypt citizen. During incorporation, the LLC also has to register with the Commercial Registry and is under supervision of GAFI. There is no minimum capital required for a limited liability company. However, in order to secure a smooth incorporation process, it is recommended to have a minimum paid up share capital of US$1,000.

Joint stock company

Egypt Joint Stock Company setup requires at least 3 shareholders and a minimum capital of US$36,000 for a closed company and US$2,900,000 for a listed company. An Egyptian JSC can carry out all business activities subject to Egyptian laws and regulations. Once business setup in Egypt is complete, JSCs are required to publish their annual financial statements which are audited by an Egyptian auditor.

Foreign branch office

Foreign companies keen on starting a business in Egypt may also set up a branch office in Egypt if the company has a contract with an Egyptian party. The foreign branch office is permitted to conduct commercial, financial, and industrial activities which are included in the contract. The branch office must have their annual financial statements audited by an Egyptian auditor and is only allowed to have 10% of its employees as foreigners.

Representative office

An Egyptian representative office can be 100% foreign-owned but is not allowed to conduct direct sales in Egypt. According to Egyptian Company Law, such an office can only engage in activities which will not amount to carrying out business, for example market research.