One of the most important stages in starting a business is registration of companies. The Egyptian legislation provides the legal forms of Egyptian companies, the owners of which may be foreign nationals.
Foreign entities are not permitted to undertake activities through a sole proprietorship. In addition, a simple partnership or limited partnership must have majority Egyptian ownership.
A foreign investor may establish an enterprise in Egypt of legal forms, such as:
-Joint Stock Company (JSC).
-Limited Liability Company (LLC).
-Branch office of foreign company.
-Simple partnership / Limited partnership.
Joint Stock Company (JSC)
-The minimum issued share capital is EGP 250,000
-100% of the shares may be held by foreigners.
-A minimum of 3 founders is required and there is no maximum.
-Join Stock Company is managed by a board of directors. The directors must number at least 3, and their number may be odd or even.
-All foreign companies established in Egypt are granted guarantees against expropriation and nationalization and their assets cannot be seized or expropriated by administrative order. Furthermore, no administrative body may interfere in setting prices or profit margins or revoke or suspend a license for the use of property except where the license terms are violated.
-The company has a right to participate in any authorized business, including banking and stock market activities, insurance.
-The Company shall establish and maintain a reserve fund amounting to at least 5% of the domestic capital.
Limited Liability Company (LLC):
-The minimum share capital is EGP 50000.
-Charter capital is paid before registration, by depositing funds in a bank in Egypt.
-A minimum of two founding partners is required and the maximum number is fifty.
-100% of the shares may be held by foreign individuals or companies.
-Management of an LLC is performed through one or more managers, one of whom must be Egyptian.
-Company has the right to conduct some kinds of business, except banking, insurance and stock.
Branch office of foreign company:
-Join the branch of a foreign company in Egypt depends on the existence of a contract with the Egyptian company for the supply of goods or services.
Simple partnership / Limited partnership:
-Foreign nationals may participate in the partnership as a limited partner, their share in the authorized capital – not more than 49%.
Our experts in the field of registration of companies will advise you on issues of starting a business in Egypt and will help choose the most suitable for your type of activity, type of Registration Company.