Introduction
Are you considering company incorporation in Egypt this year? Egypt is one of the fastest-growing investment hubs in the Middle East and North Africa. With a strategic location, a consumer base of more than 100 million people, and government reforms encouraging foreign investment, the country is becoming a prime destination for international businesses.
But before you can operate in Egypt, you need to understand the incorporation process, the legal structures available, and the steps required to comply with local regulations. This guide covers everything: the types of companies in Egypt, step-by-step incorporation, timelines, requirements, and the most common questions asked by foreign investors.
1. Types of Companies in Egypt
When planning your business, the first decision is which legal structure fits your goals.
Limited Liability Company (LLC)
Structure: 2–50 partners.
Capital: No minimum required.
Management: Simple and flexible.
Use cases: Small to medium businesses, startups, family-owned companies.
Advantages: Lower compliance, not subject to FRA approval.
Limitations: Quotas (shares) are not tradable on the stock exchange.
Joint Stock Company (JSC)
Structure: At least 3 shareholders.
Capital: Minimum EGP 250,000.
Management: Board of Directors of at least 3 members.
Use cases: Large businesses, companies seeking investors or public offerings.
Advantages: Stronger credibility, shares can be publicly traded.
Limitations: More complex compliance, requires FRA involvement.
One-Person Company
Structure: Owned by one person or entity.
Capital: Minimum EGP 1,000.
Use cases: Freelancers, consultants, small businesses, test ventures.
Advantages: Limited liability protection for single owners.
Limitations: Cannot bring in multiple shareholders.
2. Steps for Company Incorporation in Egypt
Here’s a clear step-by-step checklist for setting up your company:
Choose a Company Name
Apply for a “Non-Confusion Certificate.”
Provide 3 name options.
Name should reflect business purpose.
Define Capital and Shares
LLC: flexible capital, no minimum.
JSC: at least EGP 250,000.
Document share distribution among partners.
Secure a Local Premises
Mandatory to have a physical office address.
Virtual offices and coworking spaces are acceptable if they provide:
Notarized lease agreement.
Proof of date from Notary Public.
Valid address for tax authority inspection.
Appoint an Auditor
Must be registered in Egypt.
Required from the first day.
Issue a Power of Attorney (POA)
Authorizes your law firm to represent you.
If issued abroad, must be legalized by the Egyptian consulate.
Security Clearance
Required for all foreign shareholders and managers.
Usually takes 2–12 months depending on sector.
Open a Bank Account
Required for JSCs and One-Person Companies before incorporation.
LLCs can open after incorporation.
Register for Taxes
Corporate income tax: 22.5% of net profits.
Must also handle employee tax and social insurance.
Reference: Egypt Ministry of Finance
3. Timeline for Incorporation
POA issuance: 1–2 weeks.
Document preparation: 10 business days.
Government approvals: 10 business days.
Security clearance: 2 weeks to 3 months (does not block incorporation, but may freeze company later if negative).
👉 Average time to incorporate an LLC: 4–6 weeks.
4. Frequently Asked Questions (FAQs)
Do I need an Egyptian partner?
No. 100% foreign ownership is allowed in most sectors. Some strategic industries may require Egyptian participation.
Can I use a virtual office?
Yes. A virtual office or coworking space is acceptable if it provides a notarized lease, proof of date, and an address for tax inspection.
What is the corporate tax rate in Egypt?
22.5% on annual net profits.
How long does it take to incorporate a company?
On average, 4–6 weeks. Security clearance may extend the process.
Do I need a bank account?
Yes, for JSCs and One-Person Companies.
No, for LLCs.
Can foreign shareholders live abroad?
Yes. A POA allows a legal team in Egypt to handle incorporation on their behalf.
Do I need an auditor from day one?
Yes, all company types must appoint an auditor upon incorporation.
What happens if security clearance is rejected?
The foreign shareholder must withdraw to keep the company active.
Conclusion
Company incorporation in Egypt is straightforward if you follow the right steps and meet the legal requirements. Whether you choose an LLC, JSC, or One-Person Company, success depends on proper planning and compliance.
At Consortio Law Firm, we guide foreign and local investors through every stage of incorporation, from choosing the company name to securing licenses and tax registration.
For more insights, check our extended resource:
👉 The Ultimate Guide to Egypt Company Incorporation with Consortio
📩 Contact us today to start your incorporation journey in Egypt with full legal support.
