Establishing a company in Egypt
There are many questions and inquiries related to establishing a company in Egypt, so we dedicate this article. For those wishing to develop a project or a company, we will explain the establishment of a company. The Ministry of Finance established a company through the General Authority for investment and free zones.
Establishing a company through the Ministry of Finance
Previously, we would advise the questioner to find a trusted lawyer or a respected financial accountant [N procedures are as follows:
1. lease agreement for the headquarters.
2. electricity delivery.
3. proof of the date on the lease contract of the real estate month.
4. a copy of the card for the Egyptian and the passport for the foreigner, and photocopies, of which there are many copies.
5. the Tax Authority will work out the tax letter until the tax card is issued.
6. the Chamber of Commerce to obtain a permit to practice the profession.
7. commercial register for the registration of the company.
8. security approval if one of the parties is a foreigner from one month to 6 months and you can get preliminary approval to practice the profession.
9. Regarding employees, the Social Insurance Authority registers the company and employees.
For a foreigner
As a foreign party, you must have an Egyptian partner with at least 51%, because most transactions will be the first in front of the Egyptian government interests.
Company incorporation fees
It is known that this method is cheaper, but it takes a lot of time because you go to many government departments to clear the aforementioned requests.
Types of companies
1. an individual facility.
2. solidarity company.
3. a simple recommendation.
4. a private company.
Each of them has its advantages and disadvantages of indebtedness.
1. limited liability.
2. Joint Stock Company.
3. stock recommendation.
Establishing a company through the General Authority for investment and free zones
The Arab Republic of Egypt is achieving a strong economic recovery under the leadership of His Excellency President Abdel Fattah al-Sisi.
Yes, all procedures end in one day.
Yes, you can complete all transactions from home
.Yes, there is a VIP service within an hour or two.
You don’t need to go as many times as possible to get into the useful.
Internal investment companies
Investors can establish a limited liability company, a joint-stock company, a foreign branch, or a representative office of either of them. They can also establish individual companies or individual enterprises.
Companies are obliged to register in the commercial register with the regulatory authority, namely the General Authority for Investment and free zones (the”authority”), and the company’s law sets out the rules to be included in the articles of the Association of Companies.
Limited liability companies
Limited liability companies cannot conduct insurance business, banking business, or save or receive deposits. However, foreigners have the right to own them in their entirety, and there is no minimum capital requirement for such enterprises.
Joint Stock Companies
Joint stock companies are obliged to notify the EFSA of each issue of securities to be approved by them.
An independent auditor shall submit and audit the financial statements by Egyptian accounting standards.
Which correspond with minor differences between IFRS and international accounting standards.
At least 25% of the company’s capital must be repaid before incorporation and the minimum capital is EGP 250,000.
35% will be paid from it within three months [from the establishment].
The minimum issued capital of a joint-stock company offering its shares for public subscription shall not be less than EGP 20,000,000.
In the case of holding companies established to deal with shares and investment, the minimum capital is EGP 5 million.
Of which at least 25% is paid upon incorporation. In general, there are no restrictions on the percentage of capital that foreigners can own.
Branches of foreign companies
No foreign company may engage in any commercial, financial, industrial, or contracting activity in Egypt.
Only after the registration of its branch in the commercial register with the authority, while the representative offices of banks are obliged.
By completing its registration with the Central Bank of Egypt. No specific capital is required for subsidiaries of foreign companies.
Representative offices of foreign companies
Corporate law states that a foreign company may establish its representative office as long as its purpose is limited.
To study the markets or study the feasibility of production without practicing any commercial activities, including the activity of commercial agents.
For the benefit of a foreign company and a certain capital is not required for representative offices.
Public free zones
It is permissible to establish a company in one of the free zones located throughout Egypt as an alternative to establishing a local company, in these areas.
Alexandria Public free zone.
And the public free zone of Nasr City.
And the general free zone of Port Said.
And the public free zone in Damietta.
And the Ismailia public free zone.
And the public free zone in Qanat.
And the public information-free zone.
And the public free zone in Shebeen al-Kom.
And the public free zone of Suez.
The investment law establishes the rules for the creation and management of public free zones.
The authority sets free zone policies.
The conditions for granting licenses are determined.
It establishes regulations on the ownership of land and buildings.
Some sectors are prohibited from establishing a free zone.
Free zone projects are not subject to taxation, however, such projects pay a fee of 1% (one percent) of the value of the goods upon entry.
For storage projects, a fee of 1% (one percent) of the value of the goods at the checkout.
For manufacturing and assembly projects،
The trade of goods in transit (transit) of the specified destination is exempt from this fee.
Free zone projects are generally exempt from import and export regulations. All equipment, machinery, and means of Transportation are also exempt
(Except for passenger cars).
Necessary for its activities are customs taxes and sales tax.
Special free zones
Enterprises may be established as special free zones.
Subject to the approval of the authority.
This means that they do not have to be physically located in the public free zone complexes intended for this.
The authority may also grant approvals for the transformation of the internal project into a special free zone.
(The Implementing Regulations of the investment law stipulate special conditions in this regard, including the requirement that the project already exists, and that it exports at least half of its production).
Investment zones were established under the provisions of the law
No. 19 of 2007.
Which introduced a new investment system in which the investor bears all infrastructure and utility costs in addition to construction work.
The establishment of such zones requires the approval of the Prime Minister،
These areas are regulated by the government through the District Board of Directors.
Investment zones enjoy the same advantages as free zones in terms of facilitating the issuance of licenses،
However, it does not provide the tax and Customs incentives and exemptions that free zones enjoy.
The objectives of the investment zones are to establish integrated clusters in various fields. Expanding the scope of economic and social development in all governorates of the Republic and optimizing the competitive advantages of the state.
At the moment there are five investment zones in the industrial sector leading textile industries, automotive feeder industries, building materials industries, and engineering industries.
Moreover, there are two investment zones dedicated to small and medium enterprises،
And five zones for higher education and scientific research, and one zone for servicing communications and Information Technology.
Address: 3 Salah Salem Street Nasr City, Cairo, 11562, Egypt.
E-mail address: email@example.com
We reviewed with you the establishment of companies of all kinds and the easiest ways and wish you success and success.
Establishing a company in Egypt
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