Which forms of companies can be registered? - Egypt

Basic Information Guide

Payment methods:

Electronically: Through the authority’s website when submitting an application for incorporation electronically.
In cash: at the Investors Service Center

Contact Data

Address: No. 3, Salah Salem Street, Nasr City, Cairo, 11562 Egypt

Phone: +202 240 55 452

Fax: +202 240 55 425

Hotline: 16035

Website: WWW.GAFI.GOV.EG

E-mail: INFO@GAFINET.ORG

Registering a business in Egypt

The General Authority for Investment and Free Zones (GAFI) is the principal government body regulating and facilitating investment in Egypt. It is the institution responsible for company/business registration in Egypt. GAFI is an affiliate of the Ministry of Investment, and its work focuses on promotion, facilitation, business matchmaking, Egyptian expatriates, events, investor aftercare, and research and market intelligence functions. The National Council for Women and the MSME Development Agency provide technical support/guidance with regard to women entrepreneurs.

For any company form, an enterprise can be established/registered under Egypt’s Companies Law or Investment Law on the same day of applying if all the required documents are submitted.

Which forms of companies can be registered?

a) In-land Companies

Investors can incorporate a company as:

Sole corporations
Partnerships
Capital companies

All companies have to be registered in the Commercial Register at the supervisory authority, which is the General Authority for Investment and Free Zones (GAFI). The Companies Law outlines what must be included within the company's Articles of Association (AoA).

Foreign branch office

Any foreign company carrying out any commercial, financial, industrial or contracting activity in Egypt has to be registered as a branch in the Commercial Register at GAFI while bank representatives are registered at the Central Bank of Egypt. There are no capital requirements for foreign offices.

Foreign representative office

According to the Companies Law, a foreign company may establish a representation office as long as the sole purpose of such office is to carry out market surveys or to study the feasibility of production without carrying on any commercial activities including the activities of a commercial agent for the benefit of the foreign company. There are no capital requirements for representative offices.

B) General Free Trade Zones

As an alternative to setting up an in-land company, it is possible to establish a company in one of the many free zones across Egypt: The Alexandria Public Free Zone, the Nasr City Public Free Zone, Port Said Public Free Zone, Damietta Public Free Zone, Ismaila Public Free Zone, Public Free Zone of Keft, Media Public Free Zone, Shebin El Kom Public Free Zone and Suez Public Free Zone.

The Investment Law outlines the rules for the establishment and management of general free zones. GAFI sets the policies for free zones, establishes the conditions for granting licenses and sets the regulations for owning land and buildings. Certain sectors are prohibited from establishing a free zone presence.

Free zone projects are not subject to taxes but pay a fee which is 1% of the value of goods entering the free zone for storage projects, and 1% of the added value (cost of manufacture or assembly) of goods exiting the free zone for manufacturing and assembly projects. Trade in transit products (with determined destination) is exempt from this fee.

Free zone projects are generally exempt from import/export regulations, and all equipment, machinery, and transportation required for the activities thereof are exempt from customs duties and sales tax (with the exception of cars).

C) Private Free Trade Zones

Companies are allowed, subject to GAFI's approval, to be set up as private free zones, which means they do not have to be physically located in the designated general free zone complexes. GAFI may also grant approval for the transformation of an in-land project to a private free zone (specific conditions are set out in the Executive Regulations to the Investment Law, including the requirements that the project is already active, and that it exports at least half of its production output).

D) Investment Zones

Investment Zones were created under Law no. 19 of 2007, which introduced a new investment scheme where the investor bears all infrastructure and utilities costs and construction works. Formation of an investment zone requires the approval of the Prime Minister and the government regulates it through a board of directors.

Investment zones enjoy the same benefits as free zones in terms of facilitation of license-issuance, but are not granted the incentives and tax/custom exemptions enjoyed in free zones. The objectives of investment zones are establishing integrated clusters in all fields.