Business entities in Egypt in 2025

Since 2003, Healy Consultants Group assists our Clients’ choose the optimum Egyptian corporate structure including i) company formation and ii) multi-currency corporate bank account opening and iii) regulatory license approval and iv) accounting and tax support and v) human resource management. This web page will help your Firm understand the different Egyptian entities:

Limited liability company

1. A limited liability company (LLC) is a common entity used to set up a small business to engage in any commercial or industrial activity; and
2. During company formation, our Clients must appoint i) at least two shareholders (of any nationality) and ii) at least one manager who must be an Egyptian resident. There is no minimum capital required for a limited liability company. However, in order to secure a smooth company formation process, it is recommended to have a minimum paid up share capital of US$1,000; and
3. The LLC is prohibited from carrying out activities in insurance, banking, and investment management. Apart from these areas, it can carry out commercial activity similar to other business entities; and
4. During the company formation process, the LLC must register with the Commercial Registry and is under the supervision of GAFI;

Joint stock company

1. Egyptian Joint Stock Company formation requires at least 3 shareholders and a minimum capital of US$ 6,000. However, a higher capital may be required for specific activities such as importation for trading activity. The Shareholders must deposit their shares with a custodian company listed at MCDR; and
2. The JSC is managed by a board of directors which should be composed of at least 3 (three) members who are in charge of the daily operation of the JSC. The board members can be individuals or corporates, however corporate members must have one or more individual representative; and
3. JSCs are required to publish their annual audited financial statements.

Foreign branch office

1. Our Client can operate in Egypt by establishing a branch of an overseas parent company. The purpose of the branch is limited to implementing a specific contract executed with any Egyptian organization, including the Egyptian Government, Public Sector or Private Firm. The foreign branch office is permitted to conduct commercial, financial, and industrial activities which are included in the contract; and
2. 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; and
3. A foreign branch is managed by one or more resident managers, whom are responsible for its daily operation. Their authorized powers are conferred by the parent company; and
4. An Egyptian branch of a foreign company suffers corporation tax of 22.5% and a further 10% withholding tax, subject to the provisions of an applicable tax treaty. Annual net profits are automatically deemed distributed to the head office within 60 days after the year end.

Representative office (RO)

1. An Egyptian representative office or a scientific office can be 100% foreign-owned, but is limited to conducting a market study without performing any commercial activities.
2. A RO is managed by a manager which his/her authorised powers are determined by its parent company.
3. The RO has a maximum life of three years from the date of its registration. Within this period, the parent company must establish a subsidiary LLC or a branch of a foreign company; and
4. At the beginning of each year, Egyptian representative offices must submit a report to the General Authority for Investment and Free zones (GAFI). The report should include i) detailed information on all its employees and ii) its market study any decisions made from the parent company in that regard and iii) a time frame for the remaining studies.

Table comparison of Egypt entities