Egypt with its rich history and promising market offers abundant opportunities for entrepreneurs looking to start their own businesses. With a strategic location, a large consumer base, and a growing economy, Egypt provides an attractive environment for both domestic and international investors. But before setting up a business in Egypt, entrepreneurs should understand the procedures and legal requirements of setting up a business in Egypt, to leverage its growing economy in suitable legal framework.
Benefits of Starting a Business in Egypt
Setting up a company in Egypt offers numerous advantages to business owners:
- To capitalize on Egypt’s advantageous geographical position and attract foreign investors, the state has been constructing and marketing free zones. Most products and supplies imported for a Free Zone project are exempt from import taxes and other customs requirements, which benefits companies. Additionally, there are no export taxes or restrictions on products and materials exported from the Egyptian Free Trade zone.
- Egypt exhibits a strong work ethic. The employees there are among the most skilled in the continent. It also possesses a comparatively advanced infrastructure to support it. This can be perfect for your Egyptian business.
- The country has a reliable market. Various governmental organizations provide reliable data about the Egyptian market. Businesses can benefit from a wide range of commercial space and free trade zones benefiting from exclusions from custom clearance taxes, payroll taxes, and many other fees.
- By making significant efforts to liberalize the economy, the Egyptian government is enhancing the nation’s attractiveness as a location for investments. To increase Egypt’s competence on the global stage, a new Investment Law was adopted to lower entry barriers for foreign businesses and expedite the beginning procedure. Overseas investors are now represented reasonably under the legislation.
legal requirements of setting up a business in Egypt
Setting up a business in Egypt could seem like a good idea, but without the right advice, it can be challenging. Entrepreneurs must learn the correct steps and the legal requirements of setting up a business in Egypt. The following are the legal requirements to do business in Egypt:
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Business Registration
To start a business setup in Egypt, you must register with the General Authority for Investment and Free Zones. This step involves obtaining the necessary licenses and permits. According to the World Bank’s Doing Business 2020 report, Egypt ranked 114th out of 190 economies for ease of starting a business.
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Company Formation
Determine the legal structure of your business, such as a sole proprietorship, partnership, or limited liability company (LLC). The World Bank’s report reveals that it takes an average of 14 days to register a business setup in Egypt, faster than the regional average of 19.6 days.
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Tax Registration
Register with the Egyptian Tax Authority (ETA) to obtain a tax identification number and fulfill your tax obligations.
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Employees Registration
Register the names of all employees with the National Authority of Social Insurance. To do this, submit the business’s lease agreement, the business’s tax card, the employee’s identification card and a copy of his or her birth certificate, and a copy of the employee’s and business owner’s graduation certificate.
“Consortio Law Firm” is Your Partner in Your Success Journey
If you are planning to establish a company and a business in Egypt soon, book a consultation with our professional team at “Consortio Law Firm” to explore your options and kickstart your business.
Our team can advise you on the most suitable legal entity for your business and the best funding and providing the understanding of the legal requirements of setting up a business in Egypt.
Our consultants have diversified experience and offer different services to help new businesses, such as:
- Accounting and Bookkeeping services.
- Audit and Assurance.
- Corporate maintenance services.
- Financial services.
- Tax services.
Take the initiative now and connect with the best business attorneys in Egypt at “Consortio Law Firm” through the phone number 002 01028806061 or email us via WhatsApp or email Info@consortiolawfirm.com.