Business Administration in Egypt
Closing a Business (0) , Employees (0) , Forms of Business Ownership (1) , Liability Insurance (0) , Real Estate (0) , Setting up a Business (1)
Overview by Globlatrade.net:
Setting Up a Company
Legal Business Entities
|Types of Companies and Capital (Max/Min)||Number of Partners/Shareholders and Liability||Registration Fees|
| The Limited Liability company.
|| Minimum 2 partners and maximum 50 partners.
||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).
|| Minimum 2 partners.
||Around EGP 1,000|
| General Partnership.
|| Minimum 2 partners.
||Around EGP 500|
| Limited Partnership.
|| Minimum 3 partners
||Around EGP 1,000|
- Business Setup Procedures
- 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.
- Legal Weekly Duration
- The length work is 8 hours per day, 6 days per week with a maximum of 48 hours per week, and a rest obligation of a minimum of 24 consecutive hours in a week. There is a minimum 1 hour of rest for a day of work. If an employee works for more than 8 hours per day, he has a right to a 35% bonus for day work and 70% bonus for night work.
- Retirement Age
- 60 years.
- Working Contracts
- The work contracts are governed, in the order of importance, by the legal provisions, collective agreement and individual negotiation. The two types of contract frequently used are the limited duration contract and the open-ended contract. There is also the temporary work contract which is used with the purpose of giving the employee a well-specified assignment. There is no maximum duration. The occasional work contract exists in the case of a specific assignment and its duration cannot exceed 6 months. The seasonal work contract highly used in the tourism sector is concluded for a work which is required to be repeated every year at around the same fixed date. This type of contract cannot be renewed. Dismissal / layoff criteria are also very rigid compared to the employment conditions which are very flexible.
Cost of Labor
- Minimum Wage
- The government-mandated minimum wage in the public sector is approximately EGP 176 (USD 33) a month. The minimum-wage law is also observed in the private sector.
- Average Wage
- The average Egyptian salary is about 100 EUR per month.
- Social contributions
- Social Security Contributions Paid By Employers: For salaries between 0 and 750 EGP: 26%
For salaries between 751 EGP and 1,250 EGP: 24%
Social Security Contributions Paid By Employees: For salaries between 0 and 750 EGP:14%
For salaries between 751 EGP and 1,250 EGP: 11%
- Social Dialogue and Involvement of Social Partners
- There are 23 trade unions (labor unions) which are represented by the ETUF (Egyptian Trade Union Federation).
Egyptian Trade Union Federation
- Unionization Rate
- Union membership is around 20%.
- Labor Regulation Bodies
Ministry of Labor (in Arabic)
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