IMC | Egypt Company Formation

EGYPT

Egypt is a transcontinental nation crossing the northeast corner of Africa and the southwest corner of Asia, through an area extension structured by the Sinai Peninsula. Egypt is a standout amongst the most crowded nations in Africa and the Middle East, and the fifteenth most populated on the planet. The immense populace of Egypt has given incredible open door to recently settle business ventures to get extraordinary interest for organizations’ items and administrations. The General Authority for Investment and Free Zones (GAFI) is the representative body for company formation in Egypt. Certain Industries has wholly foreign ownership in Egypt like mining, tourism, real estate, maritime transport, software design and electronic production

Company Formation in Egypt

  • A LLC company formation in Egypt is a common entity, can be 100% owned and used to conduct business within Egypt and is allowed to engage in any commercial or industrial activity. It allows wholly foreign ownership only to certain industries like mining, tourism, real estate, maritime transport, software design and electronic production
  • A Subsidiary company formation in Egypt has an agreement with an Egyptian party. The foreign branch office is allowable to conduct commercial, monetary and industrial activities which are included in the contract and only 10% of employees can be foreigner.

 Licensing in Egypt

  • The company formation in Egypt shall be committed to obtain the licenses necessary for practicing its activities. To support Egypt business registration, IMC can assist our clients in determining what type of licenses are required for their company
  • Business activities such as import and investment in the Sinai area required approval from the relevant authorities, and therefore are not eligible for 100% foreign ownership.
  • Under Egyptian Investment Law, foreign investors are not qualified to import goods for the purpose of trading in Egypt and act as a commercial agent;

 ACCOUNTING AND TAX

  • Foreign Companies in Egypt incur a corporate tax rate of 20% of net profit under US$ 1,450,000 and 30% of the net profit over US$ 1,450,000. Companies are only taxed on the profits generated from their business activities in Egypt.
  • Nonresident in Egypt is subject to a withholding the tax rate of 20% on the gross amount

Type Limited Liability Company (WLL)
Under Egyptian law, foreigners can own 100%
Share Capital Yes
Manager Minimum 1 resident manager required
Shareholders Minimum two shareholders of any nationality
Memorandum and Articles of Association Provided
Can the entity hire expatriate staff in Egypt Yes
Secretary No
Tax Registration Certificate Required Yes
Statutory audit required Yes
Annual Return Must be filed
Annual Tax Must be filed
Timeframe for Incorporation: 10-14 weeks
How long to open Corporate Bank Account 1 week

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