Setting up a company in Egypt is a much easier procedure than in other jurisdictions, while the country offers numerous reasons for opening a business here. In this article, our company formation consultants in Egypt answer 10 of the most frequently asked questions we often receive from our clients.
Table of Contents
1. Why Egypt?
Egypt is a country which offers numerous advantages for foreign investors to set up their businesses, such as no capital gains taxation and streamlined procedures which make the company purchase procedure easy and straightforward.
2. What is the most popular type of company set up by foreign investors?
The most popular type of company set up by foreign investors in this country is the joint stock or the limited liability company. Our Egypt company formation advisors can assist you to set up any of these business entities here.
3. Can an LLC in Egypt be entirely owned by a foreign investor in Egypt?
An LLC in Egypt can be entirely owned by a foreign entrepreneur and it is quite easy to incorporate.
4. What are the types of business entities in Egypt?
In Egypt, there are four types of business entities:
- limited liability company;
- general partnership company;
- joint stock company, which is a public limited company;
- limited partnership.
Our company registration agents in Egypt can provide all the necessary details on each of these business entities.
5. What are the characteristics of a limited liability company?
An LLC in Egypt is characterized by the following:
- It must have at least two partners or shareholders and up to 50 shareholders;
- The estimated time for its incorporation is 14 days;
- Its minimum capital must be of at least EGP 50,000, entirely paid upfront at the incorporation;
- The liability of the shareholders is limited to their contribution.
6. What is the yearly corporate tax rate on the annual net profits for an LLC in Egypt?
The yearly corporate tax rate on the annual net profits for an LLC in Egypt is 22.5%.
7. What are the documents necessary to incorporate a company in Egypt?
The documents needed to incorporate a company in this country are:
- company name;
- directors’ names and address;
- shareholders’ names and address.
8. How much time does it take to reserve a company name in Egypt?
A company name in Egypt can be reserved in 10 days.
9. How soon can I invoice clients with an LLC in Egypt?
It takes two months to start invoicing your clients with an LLC in Egypt.
10. What is the VAT payable on sales to local clients for an LLC?
The VAT rate payable on sales to domestic clients in Egypt for an LLC is 14%.
If you have further questions about the company formation processes in Egypt, or for help in setting up a company in Egypt, please contact our representatives.