In today’s rapidly evolving business landscape, solo entrepreneurship is becoming a dominant trend worldwide. Egypt is no exception. The One Person Company (OPC) structure offers entrepreneurs full control over their business while enjoying the protection of limited liability.
In this full guide, we will walk you through everything you need to know about establishing a One Person Company in Egypt, and why Consortio Law Firm is your ideal legal partner.
What is a One Person Company (OPC)?
A One Person Company is a type of corporate structure where a single individual can form a company, acting as the sole shareholder and manager.
Unlike a sole proprietorship, an OPC is a separate legal entity, offering limited liability protection while allowing full operational control.
Key Features of a One Person Company:
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Single Owner: Only one shareholder required.
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Limited Liability: Owner’s personal assets are protected.
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Separate Legal Entity: The OPC can own property, sue, and be sued in its own name.
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Nominee Appointment: A nominee must be appointed in case of the owner’s death or incapacity.
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Suffix Requirement: The company name must end with “OPC”.
Advantages of Establishing a One Person Company in Egypt
Setting up a One Person Company provides a strategic platform for business growth while minimizing risks. Here’s why it’s a great choice:
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Full Control: The sole owner makes all decisions without external interference.
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Ease of Management: Fewer formalities and board meetings compared to other company types.
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Limited Liability: Protects personal wealth from business debts.
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Enhanced Credibility: A registered company structure increases trust among clients and investors.
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Funding Access: Easier to obtain loans and attract investors compared to sole proprietorships.
“If you’re a foreign entrepreneur, check out our guide on Establishing a foreign-owned company in Egypt.
Click here to read more:
Establishing a foreign-owned company in Egypt.”
Challenges of Setting Up a One Person Company
Despite its many advantages, there are some challenges you should be aware of:
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High Corporate Tax Rates: Corporate tax may be higher compared to individual tax rates.
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Limited Expansion Capacity: OPCs cannot invite public investments.
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One Company Restriction: An individual can only form one OPC at a time.
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Conversion Requirement: If your OPC’s turnover exceeds a certain threshold, conversion to a Private Limited Company may become mandatory.
Who Can Establish a One Person Company in Egypt?
To establish an OPC in Egypt, you must:
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Be a natural person (not a company or legal entity).
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Be at least 18 years old.
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Have a valid national ID or passport.
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Nominate a successor/nominee willing to assume ownership under specific conditions.
Legal Framework for One Person Companies in Egypt
One Person Companies in Egypt are governed by:
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Companies Law No. 159 of 1981, as amended by Law No. 4 of 2018.
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Supervised by the General Authority for Investment and Free Zones (GAFI).
Egypt’s regulatory system supports OPC establishment with streamlined registration and protection for investors.
“If you’re interested in how foreign companies can establish one-person companies in Egypt, check out Legal Services for Foreign Companies in Egypt for more details.”
Step-by-Step Process for Setting Up a One Person Company in Egypt
1. Choose a Unique Company Name
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Ensure your name is compliant and approved by GAFI.
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Obtain a Certificate of Non-Confusion to validate uniqueness.
2. Prepare Required Documentation
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National ID or Passport Copy.
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Power of Attorney (if applicable).
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Capital Deposit Certificate from a local bank.
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Articles of Association outlining business activities, structure, and management.
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Lease agreement for business premises.
3. Appoint a Nominee
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Nominate a trusted individual in writing, with their formal consent.
4. Register with GAFI
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Submit your application and documents to GAFI for incorporation approval.
5. Obtain Commercial Registration and Tax Identification Number (TIN)
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Once registered, apply for tax card and VAT registration if applicable.
6. Open a Business Bank Account
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Use your commercial certificate and TIN to open a dedicated corporate bank account.
Special Considerations for Foreign Entrepreneurs
Foreign investors can establish a One Person Company in Egypt, subject to:
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Compliance with the Investment Law No. 72 of 2017.
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Security clearance for foreign owners.
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Appointing a local legal advisor.
Foreigners enjoy the same limited liability protection and can fully own the company in most sectors.
FAQs about One Person Company in Egypt
Q: Can I convert my One Person Company to a Private Limited Company?
A: Yes. If your turnover exceeds the regulatory limits, you can upgrade to a Private Limited structure.
Q: Is an office address mandatory for OPC registration?
A: Yes. You must have a physical office address (not a P.O. Box).
Q: Can foreigners own 100% of an OPC in Egypt?
A: Yes, in most sectors unless otherwise restricted by special regulations.
Q: What is the minimum capital requirement?
A: EGP 1,000 minimum (but advisable to deposit more for credibility).
Why Choose Consortio Law Firm?
Consortio Law Firm is your strategic partner for seamless One Person Company setup in Egypt.
Here’s why:
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Expert Legal Support: Over 13 years of corporate law experience.
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Fast Processing: Streamlined incorporation in as little as 2 weeks.
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Comprehensive Services: From name reservation to post-incorporation compliance.
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Tailored Advice: Customized business structuring solutions.
Start your business journey the right way with Consortio!
Establishing a One Person Company in Egypt offers solo entrepreneurs a powerful legal platform to grow, protect assets, and gain credibility.
With the right guidance and expert legal support from Consortio Law Firm, your OPC journey can be smooth, compliant, and successful.
Ready to establish your OPC in Egypt?
📞 Contact us today via phone (002-01028806061) or via (WhatsApp) or email (Info@consortiolawfirm.com)
