Business Setup in Egypt: Legal Process, Costs & Timelines

Egypt is fast emerging as a strategic business hub in the Middle East and North Africa (MENA) region. With its central location, large population, and growing economic reforms, Egypt offers global entrepreneurs a solid platform for regional expansion.

If you're exploring opportunities in North Africa or the Arab-speaking world, setting up a business in Egypt can be a smart move. But like any jurisdiction, understanding the legal process, expected costs, and setup timelines is essential.

In this guide, we’ll walk you through the complete process for company registration in Egypt, from choosing the right legal structure to estimated costs and how long the registration typically takes.

Why Set Up a Business in Egypt?

Here are a few compelling reasons why Egypt is attracting foreign investors and entrepreneurs:

• Strategic location between Africa, the Middle East, and Europe

• Access to a large consumer market (110+ million people)

• Free trade agreements with the EU, COMESA, and Arab League

• Business-friendly reforms under Egypt’s Vision 2030

• Competitive labor costs and improving infrastructure

Whether you want to enter manufacturing, logistics, tech, or services, Egypt offers room to grow.

Step-by-Step Legal Process to Start a Business in Egypt

1. Choose the Appropriate Legal Structure

Egypt offers several legal structures, but the most common for foreign investors are:

• Limited Liability Company (LLC) – Minimum of 2 and up to 50 shareholders. Most widely used structure.

• Joint Stock Company (JSC) – Ideal for larger enterprises or those seeking public investment.

• Sole Proprietorship – Simplest form, but with unlimited liability.

• Branch or Representative Office – Suitable if you want a physical presence without forming a separate legal entity.

Most international entrepreneurs opt for the LLC due to flexibility, limited liability, and relatively easy setup.

2. Reserve a Company Name

You must reserve your company name with the General Authority for Investment and Free Zones (GAFI). It should not:

• Be identical or similar to an existing company

• Contain offensive or misleading terms

The name reservation is valid for 30 days.

3. Prepare Incorporation Documents

You’ll need to draft and notarize your:

• Articles of Association

• Founders’ ID or passport copies

• Bank deposit certificate (showing capital contribution)

• Lease agreement for your business address in Egypt

• Power of attorney (if using a local agent or lawyer)

4. Open a Temporary Bank Account and Deposit Capital

You must open a temporary bank account to deposit the required minimum capital:

• EGP 50,000 (approx. $1,000–$1,500) for an LLC

• EGP 250,000 for a Joint Stock Company

The bank will issue a certificate confirming the deposit.

5. Submit Application to GAFI

Submit all required documentation to GAFI. This is Egypt’s one-stop authority for business registration. They will review and issue:

• A Commercial Registration Certificate

• Tax and social insurance numbers

• Notification to the Central Bank and Ministry of Finance

Once approved, the company is officially registered and can start operations.

Estimated Costs of Setting Up a Business in Egypt

Setting up a business in Egypt is relatively affordable compared to many Western and Gulf countries. However, costs can vary depending on business type and legal complexity. Here's a rough breakdown:

Total estimated setup cost: $2,500 – $4,000
Note: Costs can be lower if you’re using shared offices or operating in free zones.

Business Setup Timelines in Egypt

The timeline for business setup in Egypt varies depending on documentation, legal structure, and whether you're working with a local service provider. Here's a typical timeline:

Average total timeline: 2 to 4 weeks (if documents are complete and process is smooth)

Post-Registration Requirements

Once your company is registered, there are a few ongoing obligations you should be aware of:

1. Tax and Social Insurance Compliance

You must register with:

• Egyptian Tax Authority (for VAT and corporate tax)

• Social Insurance Authority (if hiring employees)

2. Maintaining Financial Records

Maintain accounting records and submit annual financial statements. Auditing is mandatory for all LLCs and JSCs.

3. License Renewal

Most trade and operating licenses must be renewed annually. Be mindful of deadlines to avoid fines.

4. Office Lease Agreement

A physical office or registered address is mandatory. Some free zones offer shared or virtual office solutions.

Free Zones and Investment Incentives

Egypt offers investment zones and free zones with various tax and operational incentives:

• No customs or VAT in free zones

• Tax holidays for up to 10 years in some investment zones

• Simplified procedures for import/export and foreign staff visas

Popular free zones include Cairo, Alexandria, Suez, and Ismailia.

If your business is export-oriented or in manufacturing, setting up in a free zone can reduce costs and complexity.

Final Thoughts

Egypt presents an exciting opportunity for entrepreneurs and investors who want access to a fast-growing economy and gateway to Africa and the Middle East. While the setup process is straightforward, working with a local legal expert or consultancy can ensure full compliance and avoid common pitfalls.

Whether you're starting a logistics business in Cairo, a software development company in Alexandria, or a manufacturing unit in a free zone—understanding the process, costs, and timelines sets the foundation for long-term success.

FAQs

1. Can a foreigner own 100% of a company in Egypt?
Yes, foreigners can own 100% of a business in most sectors unless the activity is restricted by law (e.g., importation). It’s always best to consult with a local advisor.

2. Do I need to be physically present in Egypt to open a business?
Not necessarily. You can authorize a legal representative via Power of Attorney to complete the process on your behalf, but some banks may require in-person meetings.

3. What is the minimum capital required for an LLC in Egypt?
The legal minimum is EGP 50,000 (around $1,000–$1,500). It must be deposited in a bank before registration and can be used after incorporation.