Business Formation

Applies to women only: Obtain husband’s permission to leave the home

Agency: Home

As per the Personal Status law of 1985, if a woman fails to obtain the permission / support of her husband to work outside the marital home (for example, for entrepreneurial ventures) it is possible that she may suffer consequences under the law. She could for example loose her right to maintenance. According to the law, maintenance is not due to the wife who leaves the marital home without her husband’s permission. A married woman has the right to go out for work, provided that she does not misuse this right; meaning it does not conflict with the family’s interest, and her husband has not asked her to abstain from going out to work.

Time and cost: 1 day, no charge

Submit documents, pay the fees and receive the certificate of incorporation and tax card.

Agency: Investors Center at General Authority for Investment (GAFI)

On February 21, 2018, the General Authority for Investment opened the Investors Center – which acts as a one-stop shop for business start-up. Entrepreneurs can use the regular process or a premier process for an additional fee.

The Premier process is easier and faster. Entrepreneurs using the premier process only have to submit the required documents and pay the fees to an official from the Investors Center. The official will then perform the required action on behalf of the entrepreneur. In order to use this process, entrepreneurs have to pay an extra fee of EGP 7,500. With the Premier process, it takes only 1 or 2 days to receive the incorporation documents and the tax card.

Entrepreneurs using the regular process will first go to a lawyer from the centers who will review all the required documents, the entrepreneur will then deposit the documents and pay the fees with a second person, and come back 2 or 3 days later to receive the incorporation documents and the tax card.

The required documents include:

  • Original certificate of non-confusion.
  • Powers of attorney from all partners (minimum 2 partners) in respect of limited liability companies.
  • Copies of valid personal ID of founders or partners.
  • Original certificate indicating that the company’s auditor is listed at the Registry of accountants and auditors.
  • The application provided by GAFI.
  • Stamped articles of association.

A registry employee reviews the documents, and issues a detailed invoice for all fees associated with the company’s establishment.

Fees for company establishment are:

  • Notary public fee: 0.25% of capital (minimum of EGP 10 and a maximum of EGP 1,000)
  • Establishment fees: 0.1% of capital (minimum of EGP 100 and maximum of EGP 1,000 according to Article 17 (d) of the Companies Law)
  • 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)
  • Chamber of Commerce fees: 0.2% of capital (minimum of EGP 24 and maximum of EGP 2,000)
  • Commercial registration: EGP 56
  • Issuance of operation certificate: 0.2% of capital (minimum of EGP 24 and maximum of EGP 2,000) plus EGP 29
  • Lawyer’s syndicate fee: 1% of contract value (maximum EGP 25,000)
  • Premier process fee: EGP 7,500

Time and cost: 3 – 4 days, see comment

Notarize company contracts

Agency: Notary

The articles of association must be signed by the owners of the company and notarized.

No stamp duty is levied, according to the amendments (published on July 1, 2006) to the Stamp Duty Law (No. 111 of 1980).

Time and cost: 1 day, no charge

Open a company file and Register employees with the National Authority of Social Insurance

Agency: National Authority of Social Insurance

Social insurance provides compensation for disability, retirement (pension), unemployment, and work-related injuries. By law, employers are required to subscribe to the social insurance system. Otherwise, they may be subject to sanctions. The following documents must be submitted to the competent authority’s office:

  • Company’s commercial registration.
  • Company’s tax card.
  • Company’s articles of incorporation.
  • Deed or lease agreement for company premises.
  • Employer to fill in Form No. 2.
  • Employer’s bank signature certificate.
  • Employer’s graduation certificate.
  • Employees’ to fill in Form No. 1.
  • Employees’ copy of identification card.
  • Employee’s graduation certificate.
  • Employees’ birth certificate (copy) if they do not have a social insurance number; or Form No. 6 for clearance/termination from employees’ previous jobs.

The company premises are then subject to inspection by relevant authorities – such as the National Authority for Social Insurance and GAFI. Inspection takes place in practice only if there is any complaint filed against the company, or suspicion that the company is an image organization that does not actually conduct business as claimed in its submitted documents. Companies registering for sales tax will undergo inspection.

Time and cost: 7 days, no charge

Register for VAT

Agency: Egyptian Tax Authority

If a company’s turnover is higher than EGP 500,000 per year, the company must obtain a VAT certificate thanks to the VAT law no. 67/2016. Before the passing of the VAT law, companies needed to register for GST according to the GST No. 11/1991.

In order to obtain a VAT Certificate, the following documents shall be submitted to the competent Tax Authority:

  • the article of association;
  • the commercial registration;
  • a POA issued by the employer;
  • a lease contract valid for at least one (1) year with a date certain from the Notary Public; and
  • the Tax Card.

Time and cost: 3 days, no charge

Buy and notarize company books

Agency: Notary

Entrepreneur are required to buy and notarize company books (the minutes book and the accounting book). There are serial numbers in the books and each page needs to be stamped by a notary.

Time and cost: 1 day, EGP 200 per book