The process of establishing companies in Egypt is one of the vital steps that enhance economic growth and contribute to building the foundations of stability in the local market.
The official registration process also allows for the establishment of a legal foundation for the company, providing it with legal protection and strengthening its position in case of disputes or legal challenges. In this article, we will delve into the company registration cost in Egypt, shedding light on company registration cost in Egypt for foreigners with a focus on the economic and legal benefits associated with this process.
Types of Commercial Companies in Egypt
A commercial company in Egypt must adopt one of the legal forms specified by the law otherwise, it would be considered void. Undoubtedly, the variety of these legal forms for companies is a response to the requirements of economic life. Here are the types of commercial companies:
are usually formed among a small number of individuals, where each partner’s individuality is significant to the consideration of the other partners. Due to the importance of personal consideration in this type of company, the death originally dissolves the company, loss of eligibility, or withdrawal of one of the partners. It is not permissible for any partner to waive his share in the company except with the consent of all partners.
The ideal form for this type of company is the partnership company which consists of joint partners, meaning that all partners are held accountable personally and jointly for all the company’s debts, and their responsibility is not limited to the shares provided to the company.
This type also includes limited partnership companies, and finally, joint-venture companies, which are hidden, companies that do not exist except for the partners but not exist for others. Accordingly, it does not have a legal personality and does not have a capital or a company address. Accordingly, there are three types of companies: the partnership company, the limited partnership company, and the joint-venture company.
Company registration cost in Egypt varies depending on the nature of the business and its legal structure. Therefore, consulting with incorporation services is essential before initiating the process.
In contrast to Partnership companies, financial companies do not rely on personal considerations. Instead, they are primarily based on pooling the necessary capital to exploit the company’s activities. Consequently, financial considerations take precedence in these companies.
The clear model for these companies is shareholding companies. It is prevalent for financial companies to undertake massive projects that require significant capital contributions, which a limited number of partners might find challenging to provide.
The company’s capital is divided into equal-value shares, usually set at a low value to enable a large number of individuals with limited income to subscribe. The shareholder’s responsibility in this type of company is limited to the value of the shares they have subscribed to.
Dual Nature Companies
In addition to the previous two types, there is a third type of company that combines both partnership and financial considerations. These are hybrid companies that mediate between partnership companies and financial companies. In this category, there are two types:
- Limited Liability Companies (LLCs):
Similar to partnership companies the number of partners cannot exceed fifty, and a partner’s share is not freely transferable but subject to certain restrictions, with the possibility for partners to reclaim their shares.
Prohibited from being established through public subscription, and they are not allowed to issue shares or bonds for public trading. Resembles financial companies in terms of management structure, establishment, determination of partner liability, and the transfer of each partner’s share to their heirs.
- Joint-Stock Companies:
These companies consist of two types of partners: guaranteed partners who are liable only for the shares they contribute. These shares take the form of tradable stocks, similar to shares in joint-stock companies.
There are also solidarity partners subject to the same conditions as those in solidarity companies and simple recommendation companies. They acquire the status of merchants, and their liability is absolute for all their assets as they manage the company.
Comprehensive Guide: Company Registration Cost in Egypt
- Obtaining the Commercial Name Certificate:
The certificate is extracted from the commercial registry after verifying the availability of the trade name, ensuring it is not in use by any other company, and confirming compliance with all necessary conditions. This step takes one day for all cases.
- Getting a Certificate from a Licensed Bank:
This step also takes only one day to complete and costs approximately 300 Egyptian pounds. The Alexandria Bank branch at the General Authority for Investment and Free Zones issues the certificate and delivers it within two days. The cost of the bank certificate ranges from 200 to 500 Egyptian pounds, depending on the bank.
- Submission of Required Documents to the General Authority for Investment and Free Zones:
A specialized lawyer immediately reviews the deposited documents, including
- Commercial Name Certificate.
- Original bank certificate depositing at least 10% of the authorized capital.
- Official power of attorney from all founders.
- Founder’s proof of identity.
- Certified copy of the audited financial statement from the Association of Accountants and Auditors.
- Application form addressed to the General Authority for Investment and Free Zones.
- Notarizing the Company Contract:
The founder incurs a cost of 0.25% of the capital, up to a maximum of 1000 Egyptian pounds. A notary public reviews the documents again, specifically the official power of attorney, and then authenticates the company’s articles of association.
- Obtaining the Chamber of Commerce Certificate:
The founder incurs a cost of 0.2% of the capital. An official from the General Authority for Investment and Free Zones obtains the Chamber of Commerce certificate on behalf of the client.
- Issuing the Establishment Notice:
The authenticated articles of association submitted by the competent authority are approved, and the authority issues a decision approving the establishment of the company.
- Extracting the Commercial Registry Certificate and Registering with the Tax Authority:
At this stage, the company completes the tax registration and obtains the tax card from the Tax Office. Companies are obliged to register for sales tax once their sales reach at least 54,000 pounds for industrial activities and 150,000 pounds for commercial activities.
Documents required for tax:
- Official powers of attorney.
- Articles of association.
- Authentication of the bank signature to be issued to the authorized signatory on behalf of the company.
- Original commercial registry certificate for the company.
- Original certified copy of the lease agreement for the company’s headquarters.
- Tax card.
Company Registration Cost in Egypt for Foreigners Online
- Initiate the registration process by creating an account and a dedicated workspace on the General Authority for Investment and Free Zones. The authority will review the submitted documents.
- Fees can be paid using credit cards, and all documents are signed electronically.
- The authority will send all company documents to the dedicated workspace on the website.
In conclusion this comprehensive guide on company registration cost in Egypt, we hope it has provided you with a strong and comprehensive foundation to embark on the journey of establishing your own company.
If you are considering establishing a company in Egypt and know the company registration cost in Egypt for foreigners, you can benefit from the expertise of Baianat company. The team is distinguished by extensive experience in commercial laws and administrative procedures, and they are committed to facilitating each step of establishing your company efficiently and securely.