Egypt has become an attractive destination for foreign investors due to its strategic location, expanding economy, and investor-friendly policies. Non-residents looking to establish a business in Egypt must comply with specific legal requirements to ensure a smooth registration process. This guide provides a comprehensive overview of the legal requirements for company registration in Egypt for non-residents, helping you navigate the process efficiently.
Types of Business Entities in Egypt
Before registering a company in Egypt, non-residents should be aware of the different business structures available:
- Limited Liability Company (LLC) – A popular choice for small to medium-sized businesses, requiring at least two shareholders.
- Joint Stock Company (JSC) – Suitable for large enterprises, with shares that can be publicly traded.
- Sole Proprietorship – A business owned by a single individual, though it offers limited liability protection.
- Branch Office – An extension of a foreign company, conducting business in Egypt under the parent company’s name.
- Representative Office – Can conduct market research but is not allowed to engage in commercial activities.
Legal Requirements for Company Registration in Egypt
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Minimum Capital Requirements
- No minimum capital required.
- Requires a minimum capital of EGP 250,000 (private) or EGP 500,000 (public).
- Must allocate sufficient operational capital as determined by the General Authority for Investment and Free Zones (GAFI).
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Shareholding and Directorship
- Non-residents can own up to 100% of an LLC or JSC.
- An LLC must have at least two shareholders, while a JSC requires a minimum of three shareholders.
- A resident manager is required for an LLC and JSC.
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Company Name Reservation
- The company name must be unique and approved by GAFI.
- It should not conflict with existing trademarks or business names.
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Preparation of Articles of Association
- The company’s Articles of Association must be drafted and notarized.
- It should outline the company’s objectives, shareholder details, and management structure.
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Bank Account and Capital Deposit
- A corporate bank account must be opened in an Egyptian bank.
- If required, the initial capital should be deposited before finalizing the registration.
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Registration with GAFI
- All businesses must be registered with GAFI.
- Required documents include identification papers, Articles of Association, and proof of capital deposit.
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Tax Registration and Licensing
- Obtain a Tax Identification Number (TIN) from the Egyptian Tax Authority.
- Register for Value Added Tax (VAT) if applicable.
- Acquire any industry-specific licenses and permits required for operations.
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Commercial Registry and Chamber of Commerce Membership
- The company must be listed in the Commercial Registry.
- Membership in the Chamber of Commerce is mandatory for most businesses.
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Work and Residence Permits for Foreign Investors
- Non-residents planning to reside in Egypt for business purposes may apply for an Investor Visa.
- Employees hired from abroad need work permits approved by the Ministry of Manpower.
Benefits of Setting Up a Business in Egypt
- 100% foreign ownership allowed in most sectors.
- Access to free zones and investment incentives.
- Competitive labor costs and skilled workforce.
- Strategic access to African and Middle Eastern markets.
Consortio Office specializes in helping foreign investors navigate company registration, legal documentation, tax compliance, and licensing requirements. Our team of experts ensures a seamless experience, allowing you to focus on growing your business in Egypt.
Contact US today for expert assistance in company registration and legal compliance in Egypt , please Contact us Immediately via the phone number 002 01028806061 or email us via WhatsApp or email Info@consortiolawfirm.com.