The establishment of companies by foreigners in Egypt is regulated by investment and commercial laws, as the state aims to attract investors by providing legal facilities and guarantees. Company establishment is governed by Investment Law No. 72 of 2017 and Companies Law No. 159 of 1981, along with complementary laws.

Types of Companies Foreigners Can Establish in Egypt

Limited Liability Companies (LLCs):

Minimum capital requirement of EGP 1,000.

No minimum number of partners required, but cannot exceed 50 partners.

Partner liability is limited to their contributions.

Joint Stock Companies (JSCs):

Minimum capital requirement of EGP 250,000.

At least 10% of the capital must be paid at incorporation.

Requires a board of directors with at least three members.

One-Person Companies (OPCs):

Can be established by a single individual, whether Egyptian or foreign.

Minimum capital requirement of EGP 50,000.

General and Limited Partnerships:

Relies on general partners who bear unlimited liability.

Less common among foreign investors.

Procedures for Establishing Companies in Egypt for Foreigners

Submit an application to the General Authority for Investment (GAFI).

Determine the type and legal structure of the company.

Deposit the capital in an Egyptian bank and obtain a deposit certificate.

Authenticate the incorporation contract and register it in the commercial registry.

Obtain a tax card and social insurance file.

Commence operations after obtaining the necessary licenses.

Rights and Guarantees for Foreign Investors in Egypt

Freedom to transfer profits abroad without restrictions.

Protection from nationalization and expropriation.

Ability to own properties necessary for business activities.

Right to hire foreign labor according to legal quotas.

Conclusion

Egyptian investment laws provide a favorable environment for foreigners seeking to establish companies in Egypt, offering facilities and guarantees that protect their investments. It is crucial for foreign investors to be aware of the legal procedures to ensure proper company formation in compliance with Egyptian laws.