Egypt_Africa_Shanghai CHYIELD Enterprise Consulting Co., Ltd.

GLOBAL REGISTRATION

Egypt

Advantages of Registering a Company in Egypt

1. Friendly strategic partnership with China: It is the first African country to establish diplomatic ties with China and a core node under the Belt and Road Initiative.

2. Business-friendly investment environment: The standard corporate income tax rate stands at 22.5%, which can be reduced to 10% for certain manufacturing sectors. The standard VAT rate is 14%, while zero VAT applies to exported goods and services.

3. Demographic and resource advantages: Home to a population of 105 million, it offers abundant labour resources and rich fossil fuels such as natural gas.

4. Prime geographical location: Straddling two continents, it lies at the junction of three continents and five seas, occupying a central position in the Arab world.

REQUIREMENTS

COMPANY TYPE

MATERIALS

Serial

Name

Details

Shareholders and Directors

A minimum of 2 shareholders is required, which can be either corporate entities or natural persons without nationality restrictions, and 100% foreign ownership is permitted;

At least one director shall be appointed, and the company must hire at least one Egyptian national to serve as manager.

Registered Capital

Companies engaged in non-import and export businesses are not subject to minimum capital requirements. It is recommended to set the share capital at 50,000 Egyptian Pounds (approximately USD 1,000). Entities with capital below 50,000 Egyptian Pounds are ineligible to apply for a VAT registration number. Alternatively, the capital amount may be determined based on the company’s operating costs for three to six months;

If a work permit is to be applied for one Egyptian manager in the future, the registered capital must be no less than USD 35,000 (around 1.8 million Egyptian Pounds);

If work permits are required for two to three Egyptian managers, the registered capital threshold rises to USD 50,000 (roughly 2.5 million Egyptian Pounds).

Registered Address

A valid local registered address in Egypt is mandatory. (Our company provides address hosting service in Cairo.)

Business Scope

Detailed business scopes must be submitted. The business scope of the Egyptian company shall be identical to or a subset of that of the shareholder company.

Company Name

It is preferable that the company name matches the name of its shareholder company.

Serial

Name

Details

Limited Liability Company

This is a highly popular business structure favoured by foreign investors and local small and medium-sized enterprises. It requires between 2 and 50 shareholders with at least one director, and there are no nationality restrictions for shareholders or directors. Its core advantages lie in flexible structure and straightforward governance. The minimum registered capital is generally 50,000 Egyptian Pounds. The vast majority of start-ups and foreign entities entering the Egyptian market opt for this structure.

Joint Stock Company

It is suitable for large enterprises planning large-scale operations, public fundraising or future IPOs. A minimum of three shareholders is required, and each shareholder’s liability is limited to the shares they subscribe to. A Joint Stock Company features a more standardized and sophisticated governance system consisting of a board of directors and general shareholder meetings. Its minimum registered capital shall not be less than 250,000 Egyptian Pounds.

Partnership

Partnerships are mainly divided into two categories. For general partnerships, all partners bear joint and unlimited liability for the company’s debts. A limited partnership must include at least one general partner with unlimited liability and one limited partner whose liability is capped at their capital contribution. This business type can be set up relatively easily with no minimum registered capital requirement, and it is widely adopted by professional service providers such as law firms and accounting firms.

Notes

1. The appointment of directors is not required for partnerships.

2. All types of enterprises shall complete registration in Egypt, apply for commercial licenses and pay relevant registration fees.

Serial

Name

Details

Power of Attorney

Information Collection Form

Individual Shareholder

1. Clear colour scanned copies of passports belonging to shareholders and directors of the Egyptian company;

2. Proof of address (utility bills or credit card statements showing the residential address issued within the latest three months)

Corporate Shareholder

1. Business Registration Certificate and Articles of Association (Certified English translations are required if the documents are issued in Chinese);

2. Corporate equity structure diagram;

3. Clear colour scanned passports of the legal representative of the corporate shareholder, valid for no less than one year;

4. Scanned ID cards (for Egyptian nationals) or passports (valid for at least one year, for foreign nationals) of the company’s Egyptian manager, to be provided by the client;

5. Scanned copy of the tenancy agreement for the registered address of the Egyptian company, applicable when the client provides the physical premises;

Note: The Power of Attorney and corporate shareholder registration documents need to be notarized and authenticated. Egypt is not a member of the Hague Apostille Convention, so documents must undergo notarization, followed by authentication by the Ministry of Foreign Affairs and the Egyptian Embassy.

REGISTRATION PROCESS

1

The client fills out the information collection form and submits all required documents.
2

Company name availability check
3

Draft the Power of Attorney
4

Notarize and authenticate the Power of Attorney and registration documents of the corporate shareholders.
5

Mail the notarized and authenticated documents to Egypt for sworn translation and notarization.
6

Carry out registration with the Companies Registry
7

Corporate Tax Registration
8

Corporate Bank Account Opening