Egypt, with its rich history and vibrant economy, presents promising opportunities for foreign investors looking to expand their business horizons. Thanks to the new procedures and laws of the new investment law, which is characterized by complete flexibility, which provides a fertile environment for the labor market. The steps for establishing a Limited Liability Company (LLC) in Egypt are now more accessible than before. However, navigating the business landscape requires careful planning, market research, and adherence to legal procedures for success.

What is a Limited Liability Company and its benefits?

Limited liability companies are hybrid entities that combine the characteristics of a corporation with those of a partnership or sole proprietorship. It is a legal business entity that combines the liability protection of a corporation, the operating flexibility of a Partnership, and the tax benefits of a sole proprietorship. The individuals who own an LLC are known as members, and one member is designated as the managing member.

Members can be individuals or other businesses. There is no limit to the number of members an LLC can have, and they can have as few as one member, called a single-member.

A Limited Liability Company is the most common company type registered in Egypt. Such companies are permitted to engage in any business activities with the exception of banking, insurance, saving, receiving or investing funds in favor of third parties, or any other activity explicitly restricted by law.

Benefits of an LLC including:

  1. Liability protection for business owners and shareholders.
  2. Personal assets are protected.
  3. Legal protection from the effects of other people’s mistakes.
  4. Flexible business structure with a variety of trading options.
  5. Corporation tax rates are lower than income tax rates.
  6. Because the company is independent of its owners, it can be sold or passed on.

Conditions for opening an LLC in Egypt

An LLC in Egypt can be formed by at least two stockholders regardless of their nationality because such business entity can be entirely owned by foreigners.

The minimum share capital is set at 50,000 Egyptian Pounds, according to investment law 72 for 2017 and it can be drafted in a bank account as soon as the company has been set up. Furthermore, a director must be appointed for your LLC in Egypt, whether a resident or from outside the country, who is going to take care of the managerial responsibilities in the firm.

Please consider the following requirements when setting up an LLC in Egypt:

  • Reserve the name for your LLC.
  • Provide to the local trade register the Articles of Association.
  • File the Memorandum of Association.
  • Offer complete information about the shareholders (name, address, nationality).
  • Notarize the owner’s signatures.
  • Name the board of managers.
  • Apply for tax purposes.

Documents Required for Establishing an LLC in Egypt

There are many documents required to establish an LLC in Egypt, including:

  • Non-confusion certificate for the name of the company authenticated by the Commercial Registry.
  • Copy of the manager’s passport.
  • Copies of relevant Powers of attorney from all founders.
  • Security clearance application for the company’s members and foreign managers.
  • Certificate of the Auditor of the company.
  • Title deed or the lease contract for the company’s headquarters.
  • Articles of Incorporation in the English language authenticated by the Egyptian embassy.
  • Company registration in the English language authenticated by the Egyptian embassy.
  • Certificate of practicing the activity.

Once all the documents have been accepted, the Commercial Registry in Egypt will issue the registration number and the certificate of incorporation for your business in the country.

So that, don’t hesitate to ask for assistance and guidance from our incorporation specialists in Egypt at “Consortio Law Firm” when drafting the documents because they can properly supervise the registration process and can help entrepreneurs set up the business in a fast manner.

Our services for Establish a Limited Liability Company in Egypt include:

  1. Providing legal advice related to the required papers and documents.
  2. Preparing the company’s articles of incorporation and employment contracts.
  3. Reviewing the company’s documents and solving all its problems.
  4. Reviewing contracts and agreements concluded with the government and their impact on the company.
  5. Helping you choose the appropriate activity for the company.
  6. Registering the headquarters of the institution and its phone numbers.

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