Open a Subsidiary in Egypt

A subsidiary is a business entity founded by another company, known as the holding or parent company. Unlike a representative office or a branch, a subsidiary is a distinct legal entity with its own independent legal personality, assets, and liabilities. This article will provide a clear and detailed view of what it entails to open a subsidiary in Egypt. Our Egyptian company formation specialists can help you with opening this type of company. 

Incorporation procedure for a subsidiary in Egypt in 2026

The first step is choosing the business form. A subsidiary in Egypt is usually established as a joint stock company or a limited liability company. The investors need to reserve a unique name for the business with the Commercial Registry, deposit the required share capital, and prepare and submit the documents to the General Authority for Investment and Free Zones (GAFI). There is no statutory minimum capital for an LLC; the partners set it in the articles of association.  After the company is set up, it needs to be listed with the Commercial Registry and enrolled for taxes with the Egyptian Tax Authority (ETA).  

Before opening a subsidiary in Egypt, investors could first set up a representative office. This is in charge of market research and building relationships with stakeholders in order to help the parent company assess the feasibility and profitability of opening a subsidiary. Please explore this infographic with information on this topic:

Documents needed to set up a subsidiary in Egypt 

Both the original documents and the legalized copies are necessary when registering a subsidiary in Egypt. The necessary documents include: 

• the Articles of Association; 
• copies of the founders’ IDs and passports; 
• official bank certificate attesting that the minimum capital was deposited in order to open a company in Egypt; 
• notarized power of attorney, in case a company formation specialist will represent you. 
• certificate for the company name; 

All foreign language documents must be officially translated into Arabic by a certified translator in Egypt. The company is usually set up in 2 to 6 weeks, and working with our specialized company formation agents can make the process easier and quicker. For individuals interested in starting a business in Egypt, our agents can also help them set up a branch office in Egypt. It is important to know that a branch office can only be opened if the foreign company has a pre-existing contract with an Egyptian company. 

Fiscal landscape and investment incentives when opening a subsidiary in Egypt 

In Egypt, all companies are obligated to pay taxes on the revenue generated. Below are the rates for Egypt’s principal taxes and investment incentives: 

• the corporate income tax is 22.5%, companies in the oil and gas exploitation industry must pay a 40.55% rate; 
• the VAT rate is 14%; 
• 10% tax on distributed dividends (5% for dividends on shares listed on the Egyptian Exchange; tax treaties may reduce the rate). 

Foreign investors should also know that Egypt allows 100% foreign ownership, and there are nine free zones offering tax exemptions, simplified procedures, and access to global markets.  

Updates for subsidiaries in Egypt in 2026

Here is some important information to keep in mind if you want to open a subsidiary in Egypt or if you already have one incorporated:

• Subsidiaries activating in the financial & insurance sector in Egypt were required to increase their capital by 30 June 2026. As such, insurance and reinsurance brokerage firms had to reach a minimum capital of at least EGP 5 million.
• State-owned subsidiaries in Egypt will enter a privatization process where around USD 5 billion will be invested in renewable energy, the food industry, logistics, and many more.
• The real estate market continues its solid expansion in 2026, thanks to many subsidiaries that were launched starting in 2024 and that will operate in full capacity by the end of the year.

For individuals unable to be present during the incorporation of their Egyptian subsidiary, our full services ensure a smooth and seamless launch into the market.  By signing a power of attorney, you can open the subsidiary remotely, without needing to travel back and forth and deal with bureaucracy. Collaborating with our experts will allow you to dedicate 100% of your energy and focus to your core business activities. Get in touch with us today!