Egypt is quickly emerging as a hub for startups, tech innovators, and international investors. With its strategic location connecting Africa, the Middle East, and Europe—alongside a large population and growing digital economy—it’s no surprise that more expats and global entrepreneurs are considering Egypt for business setup.

But if you’re a foreigner, how easy is it to register a company in Egypt? What are the legal requirements, and what kind of business structures are available?

This guide breaks down the Egypt company formation process for expats and international entrepreneurs, so you can understand the steps, benefits, and things to watch out for before launching your business.

Why Choose Egypt for Company Formation?

Here are some compelling reasons why Egypt is attracting global entrepreneurs:

• Strategic location at the crossroads of Africa, Europe, and the Middle East

• Competitive labor costs and a growing skilled workforce

• Expanding startup ecosystem, especially in fintech, e-commerce, and logistics

• Government incentives and support for foreign investment in select sectors

• Access to multiple trade agreements (COMESA, GAFTA, EU Partnership Agreement)

With proper planning and compliance, Egypt offers a unique and potentially high-growth environment for starting a business.

Can Foreigners Own a Business in Egypt?

Yes. Egypt allows 100% foreign ownership of companies in many sectors, though some industries—such as import/export, defense, and certain services—may have restrictions or require a local partner.

Foreigners are permitted to register and operate businesses in Egypt, but must meet certain legal and regulatory conditions, including documentation, capital requirements, and residency or visa obligations.

Popular Business Structures for Expats

Here are the most commonly used legal entities for company formation in Egypt:

1. Limited Liability Company (LLC)

• Minimum of 2 shareholders (individuals or companies)

• Minimum capital: EGP 50,000 (~USD 1,000)

• Foreigners can own 100% of shares

• Requires a manager (can be a foreigner or local)

This is the most common and flexible structure for small to mid-sized businesses.

2. Joint Stock Company (JSC)

• Minimum of 3 shareholders

• Required for larger businesses or those seeking investment

• Can issue shares and raise capital publicly

• Minimum capital: EGP 250,000 (~USD 5,000)

A JSC is more complex but suitable for startups aiming to grow or attract investors.

3. Branch Office

• Extension of a foreign parent company

• Can operate in Egypt under the parent’s name

• Must engage in the same activity as the parent company

• Requires registration with the General Authority for Investment and Free Zones (GAFI)

This is ideal for multinationals expanding into Egypt without creating a new legal entity.

4. Representative Office

• Cannot generate revenue

• Used for market research or promotion

• Cannot engage in commercial activity

Suitable for early market exploration before committing to full operations.

Steps to Register a Company in Egypt

Step 1: Reserve the Company Name

• Must be unique and approved by GAFI

• Check for name conflicts or restricted terms

Step 2: Prepare Required Documents

Common documents include:

• Passports of shareholders and managers

• Power of attorney (if using a local agent)

• Draft articles of association

• Proof of registered office address

• Bank certificate confirming capital deposit

Note: All documents in a foreign language must be translated into Arabic and notarized.

Step 3: Deposit Capital

You must deposit the minimum capital into a corporate bank account before incorporation. A bank certificate will confirm this step for GAFI.

Step 4: Submit Incorporation Documents to GAFI

GAFI is the official body that handles company registrations. The process includes:

• Document review

• Payment of registration fees

• Issuance of the commercial registration certificate

This step typically takes 1–2 weeks if all documents are complete.

Step 5: Register for Tax and Social Insurance

Once incorporated, your company must:

• Obtain a Tax Card from the Egyptian Tax Authority

• Register for Value Added Tax (VAT) if applicable

• Register with the Social Insurance Authority if hiring employees

Do You Need to Be in Egypt to Start a Company?

Not necessarily. Many expats and foreign investors form companies remotely through local law firms or business consultants. These agents can act on your behalf with power of attorney and handle:

• Name reservation

• GAFI documentation

• Bank account setup

• Licensing and compliance

However, if you plan to live or work in Egypt, you’ll eventually need to apply for the appropriate business visa or residency permit.

Do You Need a Local Partner or Director?

For most sectors, no local partner is required—you can own the business outright as a foreigner. However, in regulated industries (e.g. importation, media), local ownership or board representation may be required.

If you're not residing in Egypt, it’s common to appoint a local manager or trusted agent to fulfill administrative and legal responsibilities.

Taxation in Egypt for Companies

Key corporate tax points:

• Corporate income tax: 22.5%

• Value Added Tax (VAT): 14% (for most goods and services)

• Withholding tax: May apply to dividends, interest, or royalties paid abroad

Egypt has double tax treaties with many countries, which can reduce withholding tax obligations for international entrepreneurs.

Pros and Cons of Egypt Company Formation for Expats

Pros

• Full foreign ownership allowed in many sectors

• Low startup capital requirements

• Growing tech and startup ecosystem

• Gateway to African and Middle Eastern markets

• Affordable labor and operating costs

Cons

• Bureaucracy and paperwork can be time-consuming

• Arabic-language documentation often required

• Currency volatility and economic fluctuations

• Some industries remain heavily regulated

Final Thoughts

Egypt offers a promising environment for expats and international entrepreneurs seeking new opportunities in the Middle East and North Africa. With a large, young population and increasing digital connectivity, the market is open to innovation, services, and scalable ventures.

While company formation is accessible to foreigners, the process can be complex without local guidance. Working with a trusted legal advisor or business setup agency can ensure compliance, avoid delays, and make the registration process smooth—especially if you’re launching from abroad.