Egypt has one of the largest economies in the MENA region, according to the UNCTAD report for the year 2020 It was ranked as the first country in the African continent to attract foreign direct investment (FDI). In addition, The Egyptian government has taken many measures to encourage foreign investment in its territory. One of the most significant of these reforms is Investment Law (No.72/2017) Which aims to foster the investment climate by providing many Legal Form of Companies in Egypt and various guarantees.

Types of companies in Egypt

In Egypt, there are four types of possible legal forms of business:

  • Joint stock company.
  • Limited liability company.
  • Representative office.
  • Branch
  • Sole shareholder company.

For foreign investors the most common form is the LLC as it provides limited liability and any issued capital is accepted. Other factors to consider when determining the most suitable form of business to use are the purpose of the entity, the number of partners and capital invested are essential.

The Companies’ Law No. 159 of the year 1981, the New Investment Law No. 72 of the year 2017, and the Capital Market Law with their Executive Regulations and adaptation are the governing laws that regulate and manage the establishment of a company in Egypt from the beginning until its dissolution. Meanwhile, the central authority governing all types of companies in Egypt are the General Authority for Investment and Free Zones.

Which legal form is most appropriate for a foreign company operating in Egypt?

The appropriate legal form can be determined based on the number of shareholders and the company’s activity (as some activities require the Joint Stock Company form). However, we usually recommend the LLC company. With LLC company:

  • No minimum capital is required.
  • It is the fastest legal form to set up. Often, the formation process doesn’t take longer than 10 business days.
  • No need to register with the stock market.
  • No need to hold a constituent assembly to appoint the board of directors.
  • Ease of transferring the shares or changing the activity.
  • The bankruptcy of the company does not affect the shareholders’ private wealth.

Want to choose the best Legal Form of Companies in Egypt for your own business?

The process of establishing companies in Egypt is one of the vital steps that enhance economic growth and contribute to building the foundations of stability in the local market.

A commercial business in Egypt must choose one of the Legal Form of Companies in Egypt specified by the law. as the variety of these legal forms for companies is a response to the requirements of economic life.

In order for any business to succeed, it must be built and established according to strong rules, and specific controls that protect all parties from exposure to legal violations that may expose individuals to large penalties.

So, if you want to establish your own company by choosing the best Legal Form of Companies in Egypt, you need to cooperate with the “Consortio Law Firm” expert team.

We have the most skilled company formation lawyers in Egypt, as they provide integrated legal services that help you establish your business in a sound legal manner that ensures the continuity of its success and spread.

For further inquiries, Just Contact us Now via the phone number 002 01028806061 or send us a WhatsApp or email Info@consortiolawfirm.com.