Explore Egypt’s investment landscape, company structures and practical requirements for establishing a business.
Egypt at a glance
The Arab Republic of Egypt is situated in a strategic location linking Asia with Africa and overlooking the Mediterranean and the Red Sea. Egypt covers about one million square kilometers, and as of October 2026, its population exceeded 109 million. It is considered the most densely populated country in the Middle East and North Africa (MENA). About 25% of this population resides in the Greater Cairo area. Egyptian society is considered young, with people under 30 making up more than 66% of the total population.
The Arabic language is the official language of the country, and the English language is the first foreign language. While most Egyptians adhere to the Islamic religion, Christianity also exists extensively. Egyptian society, like other Arab societies, is considered both conservative and religious.
Egypt is an active member of many international organizations such as the United Nations (UN), the World Trade Organization (WTO), the League of Arab States (LAS), the Organization of Islamic Cooperation (OIC), the African Union (AU), and the countries of the Union for the Mediterranean (UfM).
Egypt has one of the largest economies in the MENA region. It has ranked as the first country in the African continent to attract foreign direct investment (FDI), according to the UNCTAD report for the year 2020. According to the World Bank report in 2021, it ranked third, after Saudi Arabia and the Emirates, in terms of Gross National Product (GNP) and was the second-highest country in the African continent after Nigeria. In 2021, it was ranked 15th in the Kearney Global Service Development Index (GSLI). In 2019, it ranked 29th in the world and second in Africa in terms of road quality according to the Global Economy report.
Why invest in Egypt?
There are many benefits of doing business in Egypt; some include, but are not limited to:
1st FDI recipient in Africa
Egypt ranked the largest recipient of FDI inflows in Africa for three years in a row, according to UNCTAD reports. (link)
Well-educated Labor Force
25% of the workforce in Egypt are university graduates.
Largest market in MENA
Egypt offers convenient access to the largest consumer market in the MENA region, with the country’s population exceeding 109 million.
Safety from Natural Disasters
Egypt enjoys freedom from some of the natural disasters that might plague other countries, like forest fires, hurricanes, volcanoes, earthquakes, or floods.
Strong Global Links
Over 12% of global trade travels via the Suez Canal, representing 30% of all global container traffic, making Egypt a strategic nexus between the East and the West.
Affordable Labor
Labor costs are affordable for both highly educated employees and skilled workers. The median annual income is $10.000.
Low Costs of Production, Operating, and Transportation
Egypt offers affordable prices for:
Natural Gas
Egypt offers affordable natural gas prices at $4.75 per million British thermal units for industrial activities, and $3.25per million British thermal units for generating electricity.
Electricity
Egypt also offers some of the most affordable electricity prices on the African continent. The highest consumption bracket for business does not exceed $0.10/kWh.
Solar power & wind power
In addition to the abundance of solar and wind power.
Low Corporate Taxes
Companies with an annual turnover of less than 20 million Egyptian pounds are subject to a flat annual tax rate of 1.5% of their turnover, which allows foreign companies with low operating expenses to benefit from savings on their annual tax deductions. Companies with higher income pay only 22.5% of their net profit as CIT, which makes Egypt one of the lowest corporate tax rates on the African continent.
Diversified economy
Egypt considered as one of the most resilient economies in the MENA, due to the diversity of its income, the source of country income including but not limited to: Suez Canal, tourism, oil exports, and the remittances of Egyptians abroad.
Turning Point for Start-ups
Start-ups that aim to start a business, hire qualified employees, and minimize expenses at the same time have found an excellent opportunity in Egypt to achieve their goals at the lowest cost.
In addition, the Egyptian government has taken many measures to encourage foreign investment in its territory. One of the most significant of these reforms is Investment Law (No.72/2017), which aims to foster the investment climate by providing many guarantees. The legislator has made these guarantees also applicable to Law (No.159/1981).
Guarantees and incentives
Equal Treatment
The Egyptian state guarantees that foreign investors will receive fair and equitable treatment as that granted to national investors.
Residency
Foreign investors have the right to reside in the Arab Republic of Egypt throughout the project period, without prejudice to the provisions of the laws regulating this.
No Nationalization
It is not permissible to nationalize investment projects.
No Discrimination
Invested funds are not subject to any autocratic actions or discriminatory decisions.
No custodianship
Investment projects cannot be imposed to custodianship or reservation, except by virtue of a final court verdict.
Enforcement of Agreement
The state is obligated to respect and enforce the agreements it concludes.
Freedom of Money Transfer
The foreign investor has the right to freely and without delay transfer the cash related to his project inside or outside the country.
Ability to hire foreigners
The foreign investor has the right to employ foreign workers within the limits of (10%) of the total number of project workers, and this percentage may be increased up to (20%) in special cases.
The right to expand or liquidate the projects
The investor is entitled to own, manage, and expand his investments, and finance them from abroad in foreign currency without restrictions. He also has the right to dispose of it, reap profits and transfer them abroad, liquidate the project, and transfer the outcome of this liquidation in whole or in part abroad.
Protection of Investment Funds
The funds of investment projects can’t be seized, frozen, or confiscated, except based on a judicial order, except for tax debts and social insurance contributions due to the state that may be collected through attachment.
Protection of Investment’s Projects
Administrative authorities cannot revoke or suspend investment project licenses without proper warning, due process, and time to correct any issues.
Business structures in Egypt
Companies in Egypt are divided into four types:
Individual Partnerships.
Investment Companies.
Representative Office.
Foreign Branch.
Individual Partnerships
Individual partnerships rely on mutual trust between the founders and the profession of its owners, so each partner becomes responsible for paying the company’s obligations, an unlimited commitment to a certain value or share, but this commitment includes covering the company’s debts from their personal wealth if necessary. The trade name of individual partnerships often includes the name of one of the partners followed by the words “and partners.”
Investment Companies
Investment companies differ from individual partnerships in that the founders’ fiscal responsibility is limited to the value of the shares or stocks they own in the company. Therefore, if the company falls into debt, the partners are only required to pay what is equivalent to the value of their shares in the capital. In addition, there is a separation between the management and the partners, which allows the appointment of more qualified persons to manage the company if the founders do not have the required experience. The trade name of investment companies is often expressive of their activities and shouldn’t include the partners’ names.
Representative Office.
Any foreign company may set up a representative office in Egypt for research or studies about the market or about specific services or products. These offices can be technical, scientific, consulting, or for communications. The representative office must not carry out any commercial activities.
Foreign Branch:
Establishing a foreign branch is only applicable to foreign companies that have already signed a contract with the Egyptian government or the public/private sector to achieve a specific project. In this case, they can submit their documents to the Investment Authority to open a branch for their company in Egypt.
The differences between each company is highlighted in the tables below:
Compare company structures
Investment companies
| Investment Companies | Description | No. | ||||
| Limited by Shares | Public Joint Stock | Closed Joint Stock | Limited Liability | One – Person Company | ||
| At least 2 partners, one of them must be a general partner. Without a maximum number | At least 3 partners, without a maximum number | At least 3 partners, without a maximum number | At least two partners, but no more than 50 | One natural or legal person | Number of Partners | 1 |
| EGP250.000 | EGP250.000 | EGP250.000 | No minimum capital | EGP50.000 | Minimum Capital | 2 |
| 10% deposit during the incorporation, to be completed to 100% within 5 years | 10% deposit during the incorporation, to be completed to 100% within 5 years | 10% deposit during the incorporation, to be completed to 100% within 5 years | Not required | Necessary | Capital Deposit | 3 |
| Yes | Yes | Yes | No | No | Register at Stock Market | 4 |
| Through the stock market | Through the stock market | Requires pre-notification to stockholders | Requires pre-notification to shareholders | N/A | Share/Stock Transfer | |
| only the general partners | Board of Directors | Board of Directors | Any of the partners or a hired manager | The company owner or a hired manager | Manager | 5 |
| the general partners are entitled to use their names as a trade name. | Should express the company’s activity | Should express the company’s activity | Should express the company’s activity | Should express the company’s activity | Trade Name | 6 |
| Unlimited for the general partners | Limited to their shares | Limited to their shares | Limited to their shares | Limited to their shares | Partners’ Liability | 7 |
| For the stockholders it’s limited to their shares in the capital | ||||||
| Lead to general partners bankruptcy | Lead to lose of shares | Lead to lose of shares | Lead to lose of shares | Lead to lose of shares | Bankruptcy | 8 |
| Lead to lose the shares of the stockholders | ||||||
| As determined in the AoA | As determined in the AoA | As determined in the AoA | As determined in the AoA | As determined in the AoA | Company’s Duration | 10 |
| Required | Required | Required | Required | Required | Articles of Association (AoA) | 11 |
| Yes | Yes | Yes | Yes | Yes | Commercial Register (CR) | 12 |
| Yes | Yes | Yes | Yes | Yes | Tax ID | 13 |
| Yes | Yes | Yes | Yes | Yes | VAT | 14 |
| Yes | Yes | Yes | Yes | Yes | Book-keeping and Auditing | 15 |
| Income tax | Income tax | Income tax | Income tax | Income tax | Applied Taxes | 16 |
| Corporate tax | Corporate tax | Corporate tax | Corporate tax | Corporate tax | ||
| VAT | VAT | VAT | VAT | VAT | ||
| Law No. 159-1981 | Law No. 159-1981 | Law No. 159-1981 | Law No. 159-1981 | Law No. 159-1981 | Governor Law | 17 |
| Law No. 72-2017 | Law No. 72-2017 | Law No. 72-2017 | Law No. 72-2017 | Law No. 72-2017 | ||
| General Authority for Free Zones and Investment (GAFI) | General Authority for Free Zones and Investment (GAFI) | General Authority for Free Zones and Investment (GAFI) | General Authority for Free Zones and Investment (GAFI) | General Authority for Free Zones and Investment (GAFI) | Competent Authority | 18 |
Individual companies
| Individual companies | Description | No. | ||
| Limited partnership | General partnership | Sole proprietorship | ||
| At least two partners, one of them is silent partner | At least two partners | One person | Number of Partners | 1 |
| EGP300.000 | EGP300.000 | No minimum capital required | Minimum Capital | 2 |
| Excludes the silent partner | Any of the partners | The owner only | Manager | 3 |
| Can be named after one of the general partners | Can be named after one of the partners | Can be named after the owner | Trade Name | 4 |
| Unlimited for the general partner. For the silent partner, it is limited to his contribution in the capital | Unlimited | Unlimited | Partners’ Liability | 5 |
| Results in bankruptcy of the general partner, and loss of the shares of the silent partner | Results in bankruptcy of the partners | Results in bankruptcy of the owner | Bankruptcy | 6 |
| Approval of all partners is required | Approval of all partners is required | N/A | Changing of Partners | 7 |
| Linked to general partner’s life | Linked to partners’ life | Linked to owner’s life | Company’s Duration | 8 |
| Required | Required | Not required | AoA | 9 |
| Yes | Yes | Yes | Commercial Register (CR) | 10 |
| Yes | Yes | Yes | Tax ID | 11 |
| Based on activity | Based on activity | Based on activity | VAT | 12 |
| Yes | Yes | If the company’s capital exceeds EGP20.000 | Bookkeeping | 13 |
| Income tax | Income tax | Income tax | Applied Taxes | 14 |
| Corporate tax | Corporate tax | |||
| Law No. 72-2017 | Law No. 72-2017 | Law No. 72-2017 | Governor Law | 15 |
| (GAFI) | (GAFI) | (GAFI) | Competent Authority | 16 |
| The tax authority in the entity location | The tax authority in the entity location | The tax authority in the entity location | ||
Your questions about establishing in Egypt
Which legal form is most appropriate for a foreign company operating in Egypt?
The appropriate legal form can be determined based on the number of shareholders and the company’s activity (as some activities require the Joint Stock Company form). However, we usually recommend the Limited Liability Company L.L.C:
No minimum capital is required.
It is the fastest legal form to set up— Often, the formation process doesn’t take longer than 10 business days.
No need to register with the stock market.
No need to hold a constituent assembly to appoint the board of directors.
Ease of transferring the shares or changing the activity.
The bankruptcy of the company does not affect the shareholders’ private wealth.
Can foreigners set up a 100% foreign company in Egypt without any local partners?
Yes, they can (Law No.159/1981) and (Law No.72-2017) allow foreigners to own 100% of a company in Egypt.
What are the laws that govern the corporate sector in Egypt?
Two main laws govern and organize the corporate sector in Egypt:
Law No.159/1981; and
Law No.72/2017.
Must I be present in the country to set up the company?
No. Whether you are the owner or the manager, your presence is not required during the incorporation process—if you have an agent in Egypt.
Who is allowed to submit the incorporation documents to GAFI?
The foreign investor himself, if he has a valid residency license.
An Egyptian agent.
A foreign agent, if he has a valid residency license.
What does it require to set up an LLC or JSC in Egypt?
DOCUMENTS:
Legalized Power of Attorney (PoA).
Copy of translated passport if the shareholder is a natural person.
Copy of translated Commercial Register (CR) and financial statements for the last year if the shareholder is a company.
Copy of translated passport of the proposed General Manager/s (if not an Egyptian citizen).
Notarized lease agreement for the office space—not required for the company formation, but it’s a must for the Tax registration.
Original engagement letter from the company’s proposed Auditor (as proof of having a qualified Auditor for the company).
INFORMATION:
Proposed 10 trade names.
Amount of the company’s capital.
Company’s address.
The company managers/shareholders
The company’s activity, and
The company’s proposed duration.
TIME:
The time required for incorporating an LLC company in Egypt varies greatly based on many factors, including:
Time of registering the trade name in the government system.
Availability of the required documents.
The time/season of document submission. Usually, the process takes longer if documents are submitted during Ramadan, Eid Al Adha, or Eid Al Fitr
Nationality of the investor. Egypt generally doesn’t block any investor from entering its market. Nevertheless, they keep an eye on investments coming from specific countries and specific investors to ensure there is no suspicion of terrorist financing or money laundering. If your country is listed on their security list, your security check could potentially take longer than the standard processing time.
Assuming all required documents are ready and there are no official holidays during the application time, the standard time for obtaining your company’s documents is 10 business days. You will receive the following materials:
Notarized Articles of Association (AoA).
Commercial Register (CR).
Tax ID.
VAT Certificate (if applicable).
As for the “Bilingual Investment Gazette,” issuing this document requires 20-30 business days.
FEES:
Government charges Range from $200 to $500, depending on the proposed capital and the company’s activity.
Bank Deposit: Around $1000 for an OPC and $4000 for a JSC. For LLC, no bank deposit is required.
Professional Fees: Based on the engagement letter.
I want to use the same trade name as the mother company for my subsidiary in Egypt. How can I ensure that it is not already in use in Egypt?
The Investment Authority in Egypt provides a trade name reservation service with no need to go through the incorporation process. Hence, you can check the availability of your trade name before commencing the company formation.
Can the company’s documents (CR, AoA, Tax ID, etc.) be issued in English or any other language?
You can mention your trade name in English in the AoA. Once you receive your company’s CR, you can ask the investment authority to issue and attest a bilingual Investment Gazette. This Gazette will include all the information mentioned in the company’s AoA in Arabic, in addition to the suggested language.
Is Egypt a signatory to the Apostille Convention (Hague Treaty Convention 12)?
Egypt is not a signatory to the Apostille Convention (Hague Treaty Convention 12), therefore, any submitted documents to the Egyptian authorities need to be legalized to be usable in Egypt.
What activities are foreigners in Egypt prevented from pursuing (Negative List)?
Trade Agency.
Real Estate Agency/Brokerage Firm.
Customs Clearance.
Security Services.
Law Firms.
Accounting Firms.
Import (not applicable to exporting the manufacturers’ products).
Ownership of Agricultural Lands (not applicable to reclaimed lands).
What is the percentage of a foreign workforce that a foreign company is allowed to hire in Egypt?
You can assign a foreign manager/s to your company in Egypt with no need to calculate the ‘Egyptizing’ ratio. As for foreign employees, they shouldn’t exceed 10% of the total workforce of your company.
Do I need to obtain a work permit for the company’s manager or foreign employees?
The work permit is not a must for the manager to run the business in Egypt, as he might replace it with a tourist residency, to allow for signing documents before governmental authorities or banks.
For employees, a work permit is critical to be able to enter the country as an employee in the company.
Is there an Egyptian law pertaining to intellectual property? Has Egypt signed any international conventions on intellectual property?
Intellectual property rights in Egypt are governed by Law No. 82/2002 and its amendments. Egypt is also a signatory to, among others, the following international conventions concerning IP:
Berne Convention of 1886 (with a reservation to Article 33 concerning the jurisdiction of the International Court of Justice)
Paris Convention of 1883
Madrid Convention of 1954
Patent Co-operation Treaty 1970
I want to open a maintenance facility for the products that I export to Egypt. Must I set up a company for that purpose?
Yes. To obtain a license for your maintenance facility, you will need to submit a Commercial Register and the Tax ID of your firm; hence, you must set up a company.
I want to establish a factory in Egypt. Must I set up a company for that purpose?
Yes. To obtain the Industrial Register (IR) of your factory, you need to submit a Commercial Register and a Tax ID of your firm; hence, you must set up a company.
I want to open a representation office in Egypt. Must I set up a company for that purpose?
Yes. To open a representation office for your company in Egypt, whether it’s a technical, scientific, consulting, or communications office, you will need to set up a company. In addition, you must have an Agency Agreement with an Egyptian company to register your office in the Representation Offices Register (ROR) at the General Authority of Import & Export (GOEIC).
What are the key issues that I need to consider when I set up a company in Egypt?
Bank Account:
You must consider choosing a qualified bank that supports your business in Egypt when you are abroad; therefore, checking the online banking service and whether the bank supports governmental payments online, such as (taxes, social insurance, customs), is a critical point before opening your bank account in Egypt.
Personal Assistant:
You should strongly consider hiring a qualified Egyptian assistant once you have finalized the incorporation process. If you are new to the country, it will take some time to understand the language, culture, and way of doing business in Egypt. Having a local individual present to assist you in day-to-day matters will save you a lot of time and a considerable amount of money.
Company Office and Parking:
When choosing an office location, you should ensure that there is ample parking at the location of your office. This is one of the most common problems, particularly in Cairo. Also, you should ensure that the unit is licensed to be used as an administrative office so that you can notarize the lease agreement later.
Social Insurance:
You must comply with the social insurance regulations, meaning each hired employee should be registered immediately at the social insurance bureau; otherwise, you’ll be liable to pay a hefty fine. You also must pay the monthly social insurance contribution to avoid any trouble with government authorities.
Laws of Foreigners:
From time to time, you should try to assess the Egyptian laws about foreigners and foreign investment for changes that could impact your company. Sometimes the government issues decrees or regulations on these aspects, and it would be better to know about them in good time so you can respond appropriately.
Taxes:
Never forget to track your tax records. Whether it’s monthly income tax, the yearly tax return, or a VAT declaration, all of these aspects are extremely important. Ignoring tax implications, or assigning an unqualified person to handle them, could expose you to unexpected troubles you just don’t need.
There are several different types of taxes in Egypt.
The most important types are summarized in the table below:
| Time | Applied to | Rate | Tax | No. |
| Each month for salaries, or each quarter for irregular income | Any Egyptian or foreign resident | 2.5% for lower bracket | Income Tax (1) | 1 |
| 25% for the upper bracket | ||||
| Before 30th April of each year | Profits of companies working in Egypt | 22.5% | Corporate Tax | 2 |
| By the end of each month | Each issued invoice | 10% for professional services | VAT (2) | 3 |
| 14% for products and other services | ||||
| once the invoice is paid | Purchased goods &products | 1% on goods | WHT | 4 |
| Purchased services | 3% on services |
Please refer to our article on income tax in Egypt for extensive details.
Please refer to our article on Value Added Tax (VAT) in Egypt for extensive details.
Is Egypt a signatory to any Double Taxation treaties?
It's worth mentioning that Egypt has signed Double Taxation Avoidance Agreements (DTA) with multiple countries. If your country is listed in the table below, then you should be able to avoid the double taxation problem.
Double Taxation Avoidance Agreements (DTA) Between Egypt and Other Countries
| Effective Date | Country | No |
| 2021 | Austria | 1 |
| 1965 | Norway | 2 |
| 1968 | Iraq | 3 |
| 2021 | Finland | 4 |
| 1969 | India | 5 |
| 2020 | Japan | 6 |
| 2021 | UK | 7 |
| 1980 | USA | 8 |
| 2020 | France | 9 |
| 2021 | Romania | 10 |
| 1982 | Italy | 11 |
| 2021 | Canada | 12 |
| 1987 | Yugoslavia | 13 |
| 1988 | Switzerland | 14 |
| 2021 | Denmark | 15 |
| 1987 | Germany | 16 |
| 2021 | Belgium | 17 |
| 2021 | Tunisia | 18 |
| 1991 | Libya | 19 |
| 1992 | Syria | 20 |
| 2021 | South Korea | 21 |
| 1993 | Morocco | 22 |
| 1994 – amended 2021 | United Arab Emirates | 23 |
| 1994 | Hungary | 24 |
| 2019 – amended 2020 | Cyprus | 25 |
| 2021 | Czech Republic | 26 |
| 2021 | Sweden | 27 |
| 1998 | Turkey | 28 |
| 1997 amended 2021 | Jordan | 29 |
| 1998 | Lebanon | 30 |
| 2021 | South Africa | 31 |
| 2021 | Pakistan | 32 |
| 1999 amended 2022 | Bahrain | 33 |
| 1999 | Palestine | 34 |
| 2021 | China | 35 |
| 1999 | Belarus | 36 |
| 2000 | Yemen | 37 |
| 2021 | Russia | 38 |
| 2000 | Bulgaria | 39 |
| 2020 | The Netherlands | 40 |
| 2020 | Malta | 41 |
| 2021 | Poland | 42 |
| 2021 | Malaysia | 43 |
| 2002 | Indonesia | 44 |
| 2002 | Ukraine | 45 |
| 2003 | Algeria | 46 |
| 2003 | Sudan | 47 |
| 2021 | Singapore | 48 |
| 2021 | Albania | 49 |
| 2021 | Spain | 50 |
| 2014 – amended 2017 | Kuwait | 51 |
| 2006 | Serbia | 52 |
| 2006 | Thailand | 53 |
| 2006 | Greece | 54 |
| 2012 | Ethiopia | 55 |
| 2013 | Ireland | 56 |
| 2013 | Georgia | 57 |
| 2014 | Mauritius | 58 |
| 2017 amended 2021 | Saudi Arabia | 59 |
| 2019 | Uzbekistan | 60 |
| 2024 | Sultanate of Oman | 61 |
| 2024 | Croatia | 62 |
| 2023 | Brazil | 63 |
Note: This table was published before signing the new global tax agreement in October 2021. It will be updated once we analyze the impact of this agreement on the above-mentioned treatments.
Let’s expand your business together
Tell us where you want to establish your business and what support you need. We will help you identify the next steps.
Useful official links
Cairo
Nile City Towers, Corniche El Nile
Cairo 11624, Egypt
+20 128 196 6271
Riyadh
Olaya St., Al Olaya Tower
Riyadh 11523, Saudi Arabia