Company formation in Egypt

At a glance

Entity

Limited liability company (Sharika dhat Mas'uliyya Mahduda / ذ.م.م), the standard vehicle for foreign founders under Companies Law 159/1981; up to 100% foreign ownership permitted

Corporate tax

22.5% flat corporate income tax on net profits (headline rate as of 2026). Oil-exploration companies are taxed at 40.55%; the Suez Canal Authority, Egyptian Petroleum Authority and Central Bank at 40%. Resident companies are taxed on worldwide income; VAT is 14%.

Incorporation time

~1-2 weeks in practice once documents (Arabic MoA, apostilled PoA, security-cleared managers) are ready; GAFI's one-stop shop can issue the commercial register, tax card and VAT number within a business day after filing, but document prep and foreign-manager security clearance dominate the timeline

Minimum capital

No statutory minimum for a general-activity LLC — capital is set by the founders and must be 'sufficient' for the objects; each share must be at least EGP 10. Regulated activities (e.g. importation) carry their own capital floors.

Resident director

No general Egyptian-resident or Egyptian-national manager requirement — the historic rule was abolished, and all managers may be foreign nationals. Every manager must pass a mandatory security clearance, and foreign managers who will physically run the company need work/residence permits. Certain regulated activities (notably import for trade) still require at least one Egyptian manager.

Audit

A licensed Egyptian statutory auditor must be appointed for every LLC — there is no size-based exemption. The auditor's acceptance letter is filed with GAFI at incorporation, and audited financial statements are filed annually.

Remote set-up

Yes — an LLC can be formed without the founders travelling, via a general power of attorney to a local representative, executed abroad and apostilled/legalised (and translated into Arabic). The MoA must be drafted in Arabic and notarised before GAFI's notary office; managers' security clearances still apply.

Government fee

Modest, capital-scaled fees rather than a flat charge: commercial-register entry ~EGP 63.25; notarisation of the MoA at 0.025% of issued capital (min EGP 10, max EGP 1,000); operating-licence annual subscription at 0.002% of paid-up capital (min EGP 24, max EGP 2,000) plus ~EGP 200. Chamber of commerce and publication fees are additional.

Best for

Best for foreign founders who want a genuine operating presence in Egypt's large domestic market with full ownership. You will need to tolerate Arabic-language paperwork, currency and FX friction, and a manager security-clearance step.

The process

1. Reserve the company name and obtain a security/non-confusion clearance, and prepare the Arabic Memorandum & Articles of Association plus an apostilled power of attorney if incorporating remotely
2. Submit the file at GAFI's one-stop shop with founders'/managers' IDs and the auditor's acceptance letter; managers undergo security clearance
3. Notarise the MoA and pay the register, notarisation and licence fees; GAFI issues the commercial registration certificate, tax card and VAT registration
4. Open a corporate bank account, register with the tax authority and social insurance, and obtain any activity-specific operating licences