Egypt Company Formation and Registration: A Guide for Foreign Investors (2025)

1. Choosing a Legal Structure:

• Limited Liability Company (LLC):
  • The most common form for foreign investors.
  • Offers limited liability to shareholders.
  • Requires a minimum number of shareholders (usually two).
• Joint Stock Company (JSC):
  • Suitable for larger businesses and those seeking to raise capital through public offerings.
  • Requires a higher minimum capital.
• Branch Office:
  • An extension of a foreign company.
  • The foreign company remains liable for the branch's obligations.
• Representative Office:
  • Used for market research and promotion activities.
  • Cannot engage in commercial activities.
• Sole Proprietorship:
  • Not commonly used by foregin investors.

2. Determining Business Activities and Trade Name:

• Define the business activities that will be conducted.
  
• Choose a unique and appropriate trade name that complies with Egyptian regulations.

3. Obtaining Necessary Approvals:

• Representative Office:
  • General Authority for Investment and Free Zones (GAFI):
    • GAFI is the primary authority for investment-related approvals.
    • Obtain initial approval from GAFI for the chosen business structure and activities.
  • Commercial Registry:
    • Registration with the commercial registry is mandatory.
  • Other Approvals:
    • Depending on the business activities, approvals may be required from other government agencies (e.g., Ministry of Health, Ministry of Tourism).

4. Preparing Legal Documents:

• Memorandum of Association (MOA) and Articles of Association (AOA):
  • Draft the company's MOA and AOA, outlining its purpose, share capital, management structure, and other key details.
  • These documents must be in Arabic and may require notarization.
• Power of Attorney:
  • If applicable, provide a power of attorney to a representative in Egypt.

5. Securing a Business Location:

• Obtain a lease agreement for office or commercial space.
• The type of business location will depend on the business activity and structure.

6. Opening a Bank Account:

• Open a corporate bank account in Egypt.
• This requires the company's registration documents and other supporting documents.

7. Obtaining Necessary Licenses and Permits:

• Obtain any necessary licenses and permits required for the business activities.
• Tax Registration:
  • Register the company with the Egyptian Tax Authority (ETA) for tax purposes.

8. Finalizing Registration:

• Submit all required documents and approvals to the relevant authorities.
• Pay the registration fees.
• Obtain the commercial registration certificate.

Key Considerations for Foreign Investors:

• GAFI Assistance: GAFI provides one-stop shop services to streamline the registration process.
• Legal and Professional Advice: Seek professional legal and business advice to ensure compliance.
• Language: Arabic is the official language, and many documents must be in Arabic.
• Documentation: Prepare all necessary documents accurately and completely.
• Regulations are Subject to Change: It is extremely vital to keep up to date with any and all changes to the rules set in place by the governing bodies.