Business in Egypt

Encouraging the world’s companies, Whether you are thinking about setting up in Egypt or have already decided to invest and want to start a company now! 

Egypt Business Lawyers are the place to go for help and advice:

ITIDA, the Egyptian IT Industry Development Agency.

A successful partnership between the Egyptian Ministry of Communications and Information Technology (MCIT) and the private sector, ITIDA is responsible for developing IT in Egypt. A big part of this responsibility is to attract and facilitate direct foreign investments. From first thoughts through to setting up and developing your business, from help with incorporation to advice on incentives, work permits, customs clearance, and technical approvals – ITIDA is on hand to provide guidance and support.

It’s about helping you make the most of the opportunities every step of the way. In good company Egypt receives more foreign direct investment than any other country in North Africa. IBM, Oracle, Microsoft, Teleperformance, Vodafone, and Wipro are just some

of the leading multinationals that have made substantial investments in Egypt. In Egypt you can set up a company in 72 hours with as little as US$200 in capital. Founding principle of the General Authority for Investment and Free Zones (GAFI).

Options for legal structure of companies

Type Eligibility criterion

Sole proprietorship – Engages in a commercial activity for his or her own account

– Egyptian nationality unless business under the Investment Law, or an exporting activity

Simple partnership – No minimum capital required; profit of the partnership itself as a legal entity is not taxable

– Firm formed between two or more partners

– Foreigners can participate in partnerships but their share capital cannot exceed 49%

Limited partnership – Minimum share capital – US$45,000

by shares – At least one of the founders has unlimited liability; rest same as a joint stock company

– Prohibited from conducting the business if insurance, banking or investing funds

– Each manager shares, each not less than US$1,000, should be reserved, and cannot be

disposed of as long as the unlimited founder is a manager of the company

Limited liability – Minimum share capital – US$350

company – Managed by one or more managers, of which at least one must be an Egyptian

– 2 to 50 shareholders; a supervisory council to be formed if more than 10 shareholders

– Profits distributed to employees when the capital reaches US$45,000

Joint stock – Minimum share capital – US$45,000 for private and US$90,000 for public companies

company – Minimum of three founding shareholders; managed by a board of directors

– Minimum legal reserve of at least 5% of the paid-in capital

– Legally allocate to the employees an amount (“employee bonus”) equal to a minimum

of 10% of the distributed profits and a maximum of the aggregate annual salaries

Business in Egypt 9

Source: GAFI – *Conversion rate US$1 = 5.5 EGP (as on March 17, 2008)


During this stage, you need to do five things:

First, decide the legal structure of the company –

see options on page 8

Second, ensure that the company to be set

up complies with the ICT company laws

Third, notify GAFI that you intend to set up a

business in Egypt and obtain a comprehensive

incorporation package from them

Fourth, obtain a certificate for approval of the

company’s name from the Commercial Registry

And fifth, make the guarantee deposit in a bank

and issue the power of attorney.

This stage should only take a few days.


During this stage, you need to:

Verify documents

Pay fees (see below)

Gain approval from the state notary

Complete commercial registry

Become a Chamber of Commerce member

Assume legal responsibility and juridical personality

on the date of registration

Obtain tax cards and social security for employees

after registration.

This stage takes seven to nine working days.

Registration fees Type of fee Authority Amount

Authentication – Lawyer’s syndicate – 0.5% of the issued capital up to US$900

Notarization – Public Notary – 0.0025% of the issued capital up to US$90

Commercial registry – Commercial registration – US$9-18 (for any form)

Publishing in the – The Legal Department – Sole proprietorships: US$35

Investment Gazette of Authority – Partnerships (all three types): US$150

– Joint stock company: US$720

Tax license – The Investment Tax – Sole proprietorships: Nil

Department – Simple partnership: US$16

– Limited partnership & limited liability: US$160

– Joint stock company: US$320

Issuing shares – The General Authority – 0.05% with a maximum of US$1,800

(joint stock and for Capital Market

partnerships limited by share)

Evaluating a corporeal – GAFI – 0.2% of the corporeal share between US$900 and US$1,800

share for inland investment

Red Sea Lawyers,
Sep 7, 2013, 4:01 AM
EGYPT LAWYER legal system.key
Red Sea Lawyers,
Sep 7, 2013, 4:01 AM