Register your LLC or Company Registration in Egypt or Start up business in Egypt
Company Formation in EGYPT
In Egypt, the formation of an LLC (Limited Liability Company) requires a minimum of two partners, who can be individuals or legal entities. The LLC must also have at least one manager responsible for the administrative work, who can be of any nationality or residence. The steps to form an LLC include reserving the company name, submitting the Articles of Association to the local trade register, filing the Memorandum of Association, providing complete information about the shareholders (name, address, nationality), notarizing the owner’s signatures, and naming the board of managers. There is no minimum capital requirement, and partners are not liable for the company’s debts beyond their invested capital
Process for Registration in EGYPT
The process for forming an LLC (Limited Liability Company) in Egypt typically involves the following steps:
Select a company name: Choose a unique name for your LLC that complies with the local naming conventions.
Obtain name reservation: Submit an application to the General Authority for Investment and Free Zones (GAFI) to reserve the chosen company name.
Prepare the Memorandum of Association: Draft the Memorandum of Association, which defines the company’s objectives, share capital, and internal governance structure.
Notarize the Memorandum of Association: Notarize the Memorandum of Association at a notary public office in Egypt.
Register at the Commercial Registry Office: Submit the notarized Memorandum of Association along with other required documents to the Commercial Registry Office within 30 days of notarization.
Pay registration fees: Pay the necessary registration fees at the Commercial Registry Office.
Publish in the Official Gazette: Publish the company’s establishment in the Official Gazette to allow for public notification.
Register for taxes: Register the LLC with the Tax Authority and obtain a tax identification number.
Obtain the commercial register: Obtain the commercial register certificate from the Commercial Registry Office.
Register for social insurance: Register the LLC and its employees for social insurance with the Egyptian Social Insurance Authority.
Obtain operating permits: Obtain any necessary operating permits or licenses required for your specific business activities.
The exact process and requirements may vary slightly depending on the specific location and type of business. Working with a local lawyer or company formation service provider can help ensure a smooth and compliant company formation process.
Capital Requirement LLC in EGYPT: According to the Egypt Company Registration website, there is no minimum capital required to form an LLC in Egypt, and the capital can be determined by the shareholders. This means that the shareholders can decide on the amount of initial capital investment needed to start and operate the LLC.
Can a foreigner hold an 100% holding in LLC in Egypt
Foreigners can hold 100% ownership in an LLC (Limited Liability Company) in Egypt. The Commercial Companies Law 159 of 1981 governs the formation, acceptable activities, and dissolution of LLCs in Egypt. The Investment Law 230 of 1989 governs the manner in which foreigners can make investments in Egypt. These laws do not restrict foreign ownership of companies, including LLCs.
It is worth noting that while there are no specific restrictions on foreign ownership, restrictions may apply to certain activities, such as operating importation, commercial agencies, and real estate brokerage.
The Manager required in LLC EGYPT? What is their basic eligibility of Manager in EGYPT ? A foreigner can be manager.
Regarding the eligibility of foreigners to serve as managers in an LLC in Egypt, Its suggests that there may be specific requirements for certain activities, such as importation activities for trading purposes and commercial agency activities. For these activities, the manager(s) of the company conducting importation must be Egyptians, and a majority (51%) of the shareholders must also be Egyptians. It’s important to note that these requirements may vary depending on the specific circumstances and activities of the LLC.
However, other sources indicate that a limited liability company in Egypt can be 100% owned by foreigners, but it should be noted that under Egyptian law, a limited liability company must have at least two partners. The management of the company is carried out by managers appointed by the partners.
It is not necessary to exclusively employ managers from Egypt to run a business or import goods in Egypt. The law in Egypt doesn’t require the managers of a company to be of Egyptian nationality, however, at least one partner or shareholder must be an Egyptian national or a 100% Egyptian-owned entity.
Hiring local managers can provide several advantages such as easier communication, cultural understanding, and local market knowledge. According to Forbes, hiring local managers and employees can also signal to customers and clients that the company is invested in the local community. In addition, hiring local managers can help a company comply with local laws and regulations.
Therefore, while it is not necessary to only hire managers from Egypt, it may be beneficial to hire locals to run a business or import goods in Egypt.
For Books import business LLC in EGYPT which license, and Manager eligibility is required?
To import books to Egypt, the importer needs to obtain an import registration card from the General Organization for Export and Import Control (GOEIC). There are no specific eligibility requirements for the manager of the business. However, it is required that the company is established by at least two shareholders, and one of them must be an Egyptian national or a 100% Egyptian-owned entity.
It’s important to note that books are considered cultural goods, and therefore, the importer may need to obtain additional permits or approvals from the Ministry of Culture and other relevant authorities, depending on the nature of the books being imported.
The following documents are required when importing goods into Egypt: Commercial Invoice, Packing List, Bill of Lading, and Certificate of Origin.
Taxation in EGYPT
The corporate income tax (CIT) rate for a Limited Liability Company (LLC) in Egypt is 22.5% on the net taxable profits of the company. This tax rate is applicable to all types of business activities, except for oil exploration companies, which are subject to a higher tax rate of 40.55%.
It’s important to note that deductions are allowed for expenses that are actual, supported by documents, business-related, and necessary for the company’s operations
Other Duties Need to Pay for Import and Export of Goods in EGYPT
In addition to corporate income tax, there are other duties and taxes that may be applicable to imports and exports of goods in Egypt. Some of the key duties and taxes are:
Value Added Tax (VAT): VAT is imposed on most goods and services at a standard rate of 14%. It is calculated on the transaction value of the goods or services, including any customs duties or other charges, plus any other taxes that may be applicable.
Customs Duties: Customs duties are charged on imported goods based on their classification under the Harmonized System (HS) of Customs Tariff Codes. The rate of duty depends on the nature of the goods and their country of origin. Certain goods may be exempt from customs duties under specific conditions.
Excise Taxes: Excise taxes are specific taxes imposed on particular goods such as tobacco, alcohol, and petroleum products. Rates of excise taxes vary by product type and are calculated based on the quantity or value of the goods.
Stamp Tax: Stamp tax is imposed on certain documents, such as contracts, agreements, and deeds on property, at a rate of 0.1-0.15% of the transaction value.
PAYROLL in EGYPT
Payroll in Egypt refers to the process of managing and calculating employee salaries, deductions, taxes, and other financial aspects related to employee compensation. It involves various tasks, such as recording employee attendance, calculating wages, withholding taxes, and distributing payment to employees.
Employers in Egypt are required to withhold income tax from employee salaries and remit the amounts to the tax authority within a specific timeframe. Social security contributions must also be deducted from employee salaries and submitted to the Social Insurance Organization. These deductions ensure compliance with tax regulations and contribute to funding social security benefits.
To streamline and automate the payroll process, many businesses in Egypt utilize payroll systems or outsource their payroll functions to specialized payroll service providers. These systems and services often help with calculations, managing tax obligations, generating payslips, and ensuring compliance with local labor laws and regulations
Bank Account Opening in EGYPT: We can guide you through the process of opening a bank account for your company. This includes providing the necessary documentation and assisting in fulfilling the bank’s requirements.
Business Support Services: In addition to company formation, we can provide ongoing business support services such as accounting and bookkeeping, tax compliance, payroll processing, and other administrative tasks to help you manage your business smoothly.
Please note that each business setup is unique, and the specific requirements may vary based on factors such as the type of business, industry, and location. It is essential to have a comprehensive understanding of Egyptian company law and regulations, so partnering with professionals or legal experts familiar with the local requirements is recommended.
If you have further inquiries or need personalized assistance, please feel free to provide us with more specific details, and we will be glad to assist you further.
Bank Account Opening in EGYPT
Opening an LLC bank account in Egypt typically involves several steps. Here is a general overview of the process:
Select a bank: The first step is to select a bank that is suitable for your business needs. There are many banks in Egypt with differing fee structures, account features, and services offered. Some of the popular banks include National Bank of Egypt, Commercial International Bank, and Banque Misr, among others.
Gather the required documents: You will need to provide several documents to the bank to open an LLC bank account. The required documents typically include:
- A copy of the LLC’s commercial registration and tax card.
- A copy of the company’s bylaws and company resolution authorizing account opening and the appointment of authorized signatories.
- A copy of the company’s article of incorporation and memorandum of association.
- A valid ID or passport copy of the authorized signatories.
- A document verifying the residential address of the authorized signatories.
Visit the bank branch: Once you have selected the bank and gathered the necessary documents, you will need to visit the bank branch with the required documents and complete the account opening application.
Verification Process: The bank will verify the documentation and may conduct a KYC (Know Your Customer) process to check the identity of the authorized signatories to prevent fraud or money laundering.
Fund the account: Once the account is opened, you can fund it with sufficient capital to meet the minimum balance requirement of the bank, which varies depending on the institution.
Once the account is open, you can start using it to make transactions and run your business. Please note that specific requirements and processes to open an LLC bank account may vary dependent on the bank and regulatory requirements at the time.
How we can assist you with setting up a company in Egypt.
Here are the ways in which we can help:
Consultation: We can provide you with detailed information and guidance on the legal requirements, documentation, and procedures for setting up a company in Egypt. We can assist you in understanding the different types of business entities available and help you choose the most suitable structure for your business.
Company Registration: We can help you with the company registration process, including preparing and submitting the necessary documentation to the relevant government authorities. This includes registering your company name, obtaining necessary permits and approvals, and assisting with tax registration.
Legal Compliance: We can ensure that your company complies with all legal and regulatory requirements, such as obtaining the necessary licenses and permits specific to your industry. We can provide guidance on labor laws, tax obligations, and other legal compliance matters.
Regards
Teams, Estabizz Fintech (P) Ltd.
+91-98256-00907 | info@estabizz.com
