If you are thinking of entering the field of international trade in the African continent, you have probably thought of registering a company in the African continent. Among the countries of the African continent, Egypt is located in the northeast of the African continent and because of the fertile Nile plain in this country, it enjoys strong economic activity. Where most of the economic activities are carried out along the Red Sea, the coasts, and this plain… Due to its strategic location, Egypt is one of the countries that is a favorite and important destination for investment. This country offers suitable conditions for investment that has attracted many investors, large and small companies have been established in Egypt with these attractions. Egypt offers a wide range of options to choose from among the various types of business structures. Business units can choose the appropriate structure that suits their needs.
In just a few years, Egypt has transformed from a country struggling with political and civil unrest to a booming economy that is a hub for trade throughout the Middle East and North Africa. Huge development projects have taken place in the last few years. There are investment opportunities in various sectors which have attracted interested people from all over the world. It has the second fastest-growing economy in the region after Saudi Arabia and, like China, was one of the only economies in the world that continued to grow during the Covid-19 pandemic. Egypt is the largest recipient of FDI (Foreign Direct Investment) in the region, which has followed Egypt’s huge domestic market, GDP growth, strategic geographic location, and the attraction of educated people. In addition, the government has invested heavily in public infrastructure with the support of the International Monetary Fund (IMF) and the World Bank.
Many foreigners are interested in starting their own businesses in Egypt, but they do not know how to register a company in Egypt. We need to know what types of companies exist according to Egyptian laws. And we must know the obligations of the partners in each type of company in order to choose the best type of company so that the responsibility of the investors in Egypt is clear to us. The most common type of company registered in Egypt is a limited liability company (LLC). The General Directorate of Investment and Free Zones (GAFI) is the main government body that regulates and facilitates investment in Egypt. This institution is responsible for registering companies or businesses in Egypt. GAFI is a subsidiary of the Ministry of Investment and its work focuses on promotion, facilitation, trade matching, Egyptian expatriates, events, after-investment care, and research and market intelligence functions. National Council for Women and MSME Development Agency provide technical support/guidance to women entrepreneurs. You can create a permanent presence by incorporating limited liability companies (LLCs) or joint stock companies, or you can choose foreign branch offices or foreign agencies for a temporary presence. The company registration process involves analyzing some critical factors such as eligibility requirements, business structure, capital requirements, post-registration compliance, documentation, etc. At least 50% of the board members or directors live in Egypt. Major shareholders (having more than 50% of shares or voting rights) can reside in Egypt.
Immigrate to Egypt through education
Immigration to Egypt through investment
Immigration to Egypt by birth
Immigrate to Egypt through marriage
Egypt plans to increase its regional and international presence by establishing mutually beneficial partnerships with various surrounding countries. Egypt also intends to share its economic and technical experience with its neighboring countries to provide its counterparts with the tools needed for development. And also providing foreign assistance if needed. Special economic zones in Egypt provide the possibility of registering a company in one of the zones (free zone, industrial zone, commercial zone, etc.). The benefits of some free zone tax exemptions are for selling products only for export. Not the supply in the Egyptian market, but what is produced or imported for the consumption market of the mainland of this country is subject to customs duties and value-added tax (1 to 3% annual value-added tax), and export goods are also exempted from it. What is produced or imported is exempt from customs duties and export value-added tax, only sales value-added tax is refunded in Egypt. Agricultural activities, the production of hydrocarbons, industrial and commercial production, tourism activities, and other service sectors have led to relatively diverse economic activities in this country. Energy sector reforms have helped increase electricity supply and gas exports and opened up the energy market to private sector activity, especially renewable energy. The industrial structure of Egypt is based on seven industries, which include more than 80% of industrial companies. Extensive industrial activity is concentrated in the textile, food, beverage, and furniture industries, followed by mining and chemicals.
1- Egypt is moving in the right direction towards digital transformation in all fields.
2- Egypt has secured $9.8 billion to strengthen the United Nations Sustainable Development Goals (SDGs) from the Egypt Vision 2030 in response to the COVID-19 crisis. Egypt’s current fiscal policy seeks to reduce the government budget deficit and public debt.
3- Transformation towards a knowledge-based digital economy, encouraging innovation, research, and development, enhancing the role of promising economic sectors. In addition to encouraging medium, small, and micro enterprises, which are among the most important factors in increasing the degree of economic flexibility, increasing job opportunities, achieving financial inclusion, and integrating the informal economic sector, it leads to inclusive and sustainable growth.
4- The government prioritizes security in its comprehensive sense at the national and regional levels as a necessity to achieve and maintain sustainable development. This goal includes ensuring the security of food, water, and sustainable energy as well as political, economic, social, and environmental stability, information security (cyber), and at the same time ensuring the security of Egypt’s borders, fighting terrorism and organized crimes.
5- Egypt intends to increase its regional and international presence by establishing mutually beneficial partnerships with various neighboring countries.
1- Reserve the name of the company in the trade register (at least 3 names)
2- Obtain a bank letter
3- Confirmation and verification of necessary documents
4- Registration at the Egyptian Tax Office
5- Register with the Social Security Organization
6- Company registration in GAFI
7- Legalization of the documents
1- One-person company (OPC)
2- Limited Liability Company (LLC)
3- A limited company
4- A joint stock company
5- Partnership company
Yes, a foreigner can own a business in Egypt. The country has a number of measures to support foreign investment and encourage foreign job creation.
First of all, we must know that there are two main laws for company registration in Egypt, which are as follows:
Secondly, we need to know what types of companies exist according to Egyptian laws, which are as follows:
Thirdly, we need to know the obligations of partners in each type of company in order to choose the best type of company to limit the liability of investors in Egypt.
For more information, you can contact the legal unit of the Iran and Africa Business Club every day and consult with our experienced lawyers. You can also fill out our legal consultation request form and through that our consultants will check all your conditions and contact you and inform you the necessary solutions.