Country Guide: Egypt

Company Formation in Egypt

A complete guide to navigating GAFI and the Free Zones. Learn the requirements, corporate structures, and timelines for establishing a legal entity in North Africa’s economic powerhouse and the gateway to the Middle East.

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The Role of GAFI and Free Zones

Business registration in Egypt is centralized through the General Authority for Investment and Free Zones (GAFI). GAFI operates the Investors Service Center (ISC), a robust “One-Stop Shop” that consolidates notarization, commercial registry, and tax issuance into a highly streamlined process.

For foreign investors, Egypt offers unparalleled strategic advantages via its Inland and Public Free Zones, as well as the Suez Canal Economic Zone (SCZone). Under the New Investment Law, companies enjoy massive customs exemptions, tax incentives, and the ability to repatriate 100% of their profits.

1 – 3 Weeks

Average GAFI Turnaround

22.5%

Standard Corporate Tax

100% Foreign Ownership

Allowed in almost all sectors (exceptions apply in Sinai)

Types of Companies You Can Register

Egypt’s Investment and Companies Laws offer highly adaptable corporate structures.

Limited Liability Company (LLC)

The most popular entity for foreign investors and SMEs. It requires a minimum of two partners (shareholders) and one manager (director). There is no statutory minimum capital requirement for an LLC under standard investment laws, making it highly accessible.

Joint Stock Company (JSC)

Designed for large-scale projects, financial institutions, and companies looking to list on the Egyptian Exchange (EGX). It requires a minimum of three shareholders and a Board of Directors. 10% of the issued capital must be deposited at incorporation.

Branch Office or Rep Office

Foreign companies executing specific government contracts or projects can register a Branch. If the goal is purely market research without engaging in commercial trading, a Representative Office can be established much faster.

The GAFI Formation Process

01

Security Clearances & Name Reservation

Reserve your company name through GAFI. Concurrently, foreign founders and directors must undergo a security clearance process. While incorporation can often proceed conditionally, clearing this step early prevents future operational delays.

02

Bank Deposit Certificate (If Applicable)

For JSCs and certain specialized LLCs, you must open a blocked bank account at an Egyptian bank and deposit the required statutory capital. The bank will issue a certificate which is submitted to GAFI.

03

GAFI Submission & Notarization

Submit the Articles of Association and identification documents (translated into Arabic) to the Investors Service Center (ISC). A GAFI notary will authenticate the documents on-site, officially entering the company into the Commercial Register.

04

Tax Card & Chamber of Commerce

Within the same GAFI hub, your company will be issued a Tax Card (Bataqa Darebeya) and registered with the Chamber of Commerce. You must then register employees with the National Authority for Social Insurance (NASI).

Foreign Investors & The Golden License

Egypt recently introduced the Golden License—a single, comprehensive approval covering establishment, operation, and environmental compliance, reserved for mega-projects and strategic sectors like green hydrogen, infrastructure, and heavy manufacturing.

Additionally, companies setting up in Free Zones or the SCZone are generally exempt from standard customs duties, VAT, and corporate taxes on export activities. Foreign documents must be legalized by the Egyptian Consulate in the origin country and translated into Arabic.

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Compliance to Watch

  • ⚠️ Labor Quotas: Egyptian labor law stipulates that foreign employees cannot exceed 10% of the total workforce (though exceptions up to 20% can be negotiated in Free Zones or specialized industries).
  • ⚠️ Profit Sharing: For JSCs and certain LLCs, the law mandates that 10% of net profits must be distributed to employees (capped at the equivalent of the annual payroll).
  • ⚠️ Security Clearances: Foreign directors from specific nationalities may face extended security clearance times. Utilizing a temporary local nominee director is sometimes employed to expedite initial incorporation.

Need Professional Assistance?

Navigating GAFI’s ISC, securing security clearances, and structuring for Free Zone tax incentives requires highly specialized legal expertise. Let our bilingual corporate advisors handle the bureaucracy and complete your Egyptian setup.

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