Setting up a Business in Egypt

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Legal Forms of Companies

Types of Companies and Capital (Max/Min) Number of Partners/Shareholders and Liability Registration Fees
The Limited Liability company.
Minimum 50,000 EGP, fully paid up when formed.
Minimum 2 partners and maximum 50 partners.
Their responsibility is limited to their contribution amount.
Notary public fee: 0.25% of capital. Establishment fees: 0.1% of capital. Service charge: 0.1% of capital. Commercial Syndicate fee: EGP 125 (for capital less than or equal to EGP 500,000) or EGP 250 (for capital more than EGP 500,000). Publication fee: EGP 150-300. Chamber of Commerce fees: 0.2% of capital. Commercial registration: EGP 51. Issuance of operation certificate: EGP 29.
Joint Stock Company is a public limited company (Incorporated).
250,000 EGP of which half is fully paid up when formed. 500,000 EGP in case of initial public offering. (1/4 fully paid up)
Minimum 2 partners.
Their responsibility is limited to the contribution amount.
Around EGP 1,000
General Partnership.
No minimum capital.
Minimum 2 partners.
Their responsibility is joint and several and unlimited.
Around EGP 500
Limited Partnership.
Minimum 250,000 EGP.
Minimum 3 partners
The responsibility of active partners is unlimited. Responsibility of sleeping partners is limited to their investment amount.
Around EGP 1,000
Enterprises Federation
Association of Egyptian Businessmen

Business Setup Procedures

Administrative Formalities
Statutes must be laid down in a deed executed and authenticated by a notary. Registration, as well as the submission of statutes must be done in the Trade Register. The relevant register is the one in which the company's headquarters is located. It must be published in a journal of legal notices and a copy of the registration deed must be sent to General Authority for Investment - (GAFI) at Cairo. The sales offices and the branches of foreign companies must also be registered on the special Register provided for this purpose.
The Competent Organization
GAFI has a role in guiding and promoting foreign and Egyptian investments. It helps the investors in their administrative steps. GAFI has created a one-stop shop counter and the formalities for setting up a company are done in this counter. The One-stop Shop counter thus provides useful documents on law no. 8 of 1997 for encouraging investments, guarantees, exemptions, company creation procedure, the different zones with special statutes to the investors. For speeding up the setting up process, GAFI is authorized to grant temporary licenses for starting the project. The ITIDA (Information Technology Industry Development Agency) was established by law no. 15 of 2004. It is attached to the Ministry of Information Technology and Communication. ITIDA guides investors for executing their projects with a single counter which helps them with various relevant administrative authorities. The IDA (Industrial Development Authority) which comes under the Ministry of Commerce and Industry has been given charge since 2006 to develop and facilitate industrial establishments. In connection with the governing bodies the IDA recovers, prepares and puts up for sale lands for developing industrial zones by foreign and Egyptian promoters. The State develops the road network and other networks for these lands. The IDA also offers a one-stop shop for industrial investors to give them information on the available lands and help them get the permits for industrial operations.
Time Necessary for Registration
One single step and three days to register a company with the General Authority for Investment.

Recovery Procedures

The procedure is to put the company under supervision, which does not necessarily lead to bankrupcy.
Bankruptcy Laws
The main problem of the law on bankrupcy is the length of the administrative procedure.  The average length of time it takes to finish the procedure is 4 months.  The cost is considerable, approximately 20% of the goods.  The recovery rate is 16.8 cents on the dollar.

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