Establishing a one-person company (OPC) in Egypt offers a streamlined path for foreign investors to operate independently within the country’s dynamic market. This business structure provides the advantage of limited liability while allowing sole ownership. This article outlines the essential steps, requirements, and considerations for foreigners aiming to set up an OPC in Egypt.
Understanding the One-Person Company (OPC) in Egypt
An OPC is a company owned and managed by a single individual, who holds full control over its operations and is entitled to all profits and losses. This structure is established under the provisions of the Investment Law No. 72 of 2017. Notably, the owner’s liability is limited to the company’s capital, safeguarding personal assets from business liabilities.
Key Advantages of an OPC
- The owner’s personal assets are protected, with liability confined to the company’s capital.
- The sole owner makes all strategic and operational decisions without the need for consensus from partners or shareholders.
- With a single decision-maker, the company can operate more efficiently and respond swiftly to market changes.
Steps to Establish an OPC in Egypt
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Choose a Unique Company Name
Propose several company names to ensure uniqueness. A certificate of non-confusion must be obtained to confirm that the chosen name does not conflict with existing entities.
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Prepare Required Documentation
- Power of Attorney (if applicable):
- Identification
- Investor Identification Form
- Legal Advisor Information
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Determine the Company’s Capital
The minimum capital requirement for an OPC is EGP 1,000. The capital amount should align with the intended business activities and future growth plans.
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Draft the Articles of Incorporation
Outline the company’s purpose, capital structure, management framework, and operational guidelines. This document serves as the company’s constitution.
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Obtain Necessary Approvals
Depending on the business activities, certain sectors may require prior approvals from relevant authorities. Ensure all necessary permissions are secured before proceeding.
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Register with the General Authority for Investment and Free Zones (GAFI)
Submit all required documents to GAFI for official registration. This includes the articles of incorporation, identification documents, and any necessary approvals.
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Acquire a Commercial Registry Extract
After successful registration, obtain an extract from the commercial registry, which serves as the company’s official identification.
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Register for Taxes
Complete tax registration to ensure compliance with Egyptian tax laws. This includes obtaining a tax card and registering for value-added tax (VAT) if applicable.
Estimated Costs of Establishing an OPC
- Approximately EGP 300 to EGP 1,500, depending on the company’s capital and specific requirements.
- A minimum of EGP 1,000 is required as the company’s capital.
- Costs for legal services can range from EGP 2,000 to EGP 5,000 or more, based on the complexity of the incorporation process.
- This may include costs for notarization, translation of documents, and other administrative fees.
Post-Incorporation Compliance
Once established, the OPC must adhere to ongoing compliance requirements, including:
- Maintaining Accurate Financial Records
- Annual Financial Audits
- Timely Tax Filings
- Renewal of Licenses and Permits
For personalized assistance and expert guidance throughout the incorporation process, consider reaching out to Consortio Law Firm. With over 13 years of experience, Consortio offers comprehensive legal services tailored to the needs of foreign investors. Their team of professionals is equipped to navigate the complexities of Egyptian corporate law, ensuring a seamless establishment of your one-person company. Contact us Today to find more details via the phone number 002 01028806061 or via WhatsApp or email Info@consortiolawfirm.com.