Have you considered Doing Business in Egypt?? if yes let me comfort you that establishing a business in Egypt is so easy, according to Trading Economics global macro models and analysts’ expectations, In the long-term, the Ease of Doing Business in Egypt is projected to trend around 120.00 in 2021 and 124.00 in 2022, and this is according to their econometric models.
Since the beginning of the economic reform program, Egypt has made a concerted effort to create a legal environment that encourages investment through a comprehensive reform of all laws affecting the investment climate and business environment in Egypt.
But let’s start from the very first beginning, to start a business you need to choose your suitable form so what are the main legal entities to establish a business in Egypt?
1- Joint stock company (JSC)
As a general rule, Joint Stock Companies do not have any restrictions regarding their activity.
- It must be established with at least 3 shareholders.
- It’s The minimum capital is EGP 250,000.
- It is managed by a board of directors which is composed of at least 3 members.
2- Limited liability company (LLC)
In general, A Limited Liability Company is permitted to engage in all business activities except for banking, insurance, saving, receiving, or investment of funds for the favor of third parties, or any other activity explicitly restricted by law.
- It is established with at least 2 partners.
- There is no minimum capital required for its incorporation.
- It is managed by one or managers who are in charge of the daily operation of the company.
3- Representative office (RO)
The activity of a representative office is limited to conducting market studies without performing any commercial activity.
- A foreign company is allowed to establish a representative office or a scientific office in Egypt to carry out a market study.
- A representative office is managed by a manager whose/authorized powers are determined by its parent company.
4- Foreign Branches
A foreign company could operate in Egypt by establishing a foreign branch. The purpose of a branch is limited to implementing a specific contract in Egypt.
- The minimum capital required to establish a branch is EGP 5,000.
- It is managed by one or more managers.
5- Sole Partnership Company (SPC)
This Company has the same feature as a limited liability company.
- It is established with one partner at all times.
- A minimum capital of EGP 50,000 is required.
- The company is managed by one or more managers who are entrusted with the daily operation of the company.
To find out more about the Rules and Regulations of establishing a business in Egypt check this PWC tax and legal guide.
If you need any business legal advice you can redeem our free advisory session from here, and if have made up your mind already you can use one of our establishment packages from here.
Finally, Don’t forget to check our latest blog post about Free Small Business Tools to Scale Your Business up from here.