Egyptian (LLC) Company Formation
The most common form of company in Egypt is the Limited Liability Company, like a Limited Company in the UK or a GmbH in Austria and Germany, an Egyptian LLC company is a legal entity that is separate and distinct from the individuals who run it. For sole traders and for people in partnerships, the individuals’ personal assets are at risk if there is a claim against the organisation but shareholders in an LLC are liable to lose only the value of the share capital to which they subscribe.
LLCs in Egypt can be 100% foreign owned and are relatively quick to incorporate.
The names of companies in Egypt are generally derived from the company’s business objects and must end with, or include somewhere, ‘Limited Liability Company’ or an appropriate abbreviation. Once approved by the Registrar the company name is reserved for 10 days; certain words, such as those suggesting governmental patronage are prohibited.
All companies must have a registered office in Egypt where official company documents and correspondence may be legally served. We can provide a registered office.
Only a single director is required for an LLC and this can be either an individual or a corporate entity. At least one director must be an Egyptian resident but there are no restrictions on nationality or residency of the other directors. Nominee directors are permitted and we can provide one if required.
A minimum of two shareholders is required and maximum of 50 shareholders is permitted for an LLC, there is no restriction on nationality or residency and corporate shareholders are permitted.
The minimum share capital is EGP 1000 (approximately EUR 150) and the total must be fully paid up upon incorporation of the company.
Egyptian LLCs must file audited annual financial statements and annual tax returns.
Once all the necessary documentation has been submitted to the Registrar the typical incorporation period is one week.
Proof of Identity
As part of our due diligence we require proof of identity in the form of a passport copy for all directors and shareholders of the company.
It is not required to visit Egypt in order to incorporate an LLC but, as at least one director must be resident in Egypt, travel may be necessary.