Egypt - Company Registration

Company Type	Time to Incorporate	Cost
LLC	1 week	£4200

Directors

The management of a limited liability company may be assigned to one or more directors. At least one director must be of Egyptian nationality. The director(s) must be named in the Memorandum of Association but need not be a shareholder(s). The director(s) may be appointed for a definite term (which must be specified in the Memorandum of Association) or for an indefinite term. The director(s) shall have full authority to represent the company; unless such authority is limited by the Memorandum of Association. The director of the limited liability company has the same legal status of the director of the joint stock company. A foreign owner, to be the soul director, must obtain a residence visa and his paid up capital should not be less than €19,000.

If the number of the shareholders of a limited liability company exceeds ten, the appropriate bodies should form a supervisory board consisting of at least three of them. The supervisory board has the right to check the accounting records of the company, ask the directors to provide reports upon request, count the compan's cash and other assets, and review the company's financial statements before being submitted to the general meeting.

Limited Liability Companies

The Egyptian limited liability company has a minimum of two shareholders and a maximum of fifty. It may not raise its capital from the public or issue negotiable shares or bonds. It also may not engage in the activities of insurance, banking, savings, deposit taking or the investment of funds on behalf of third parties. No member may transfer an interest in the company to third parties without first offering it to existing members who have a period of one month in which to purchase that interest.

Choice of Legal Business Form- There are two investment regimes under which a foreign company may incorporate:

• Law 230 (the Investment Law).
• Law 159 (the Companies Law).

The more privileged of the two regimes has been Law 230 of 1989 which has less restrictions on the operation of joint stock companies.

The most common forms of incorporation are joint stock companies and limited liability companies. In order for a company incorporated under the Companies Law (Law 159) to be converted to a company subject to the Investment Law (Law 230), an application must be submitted to the Investment Authority. Approval is conditional on an increase of the capital invested by an amount which is equal to the value of the assets of the Law 159 company.

Egyptian Limited Liability Companies

• The minimum share capital of a LLC is 1000 EGP (appoximately €150) - the share capital must be fully paid up at incorporation
• Shares must be of equal value and cannot have a nominal value, no share certificates are issued for LLC
• At least one of the directors must be of Egyptian nationality.
• A minimum of two founding shareholders is required and a maximum of fifty shareholders is permitted (shareholders may be individuals or legal entities)
• A LLC may not carry out insurance, banking or savings activities, deposit taking, security brokerage, portfolio management or investment of funds on behalf of third parties
• The company name may refer to its activities and may include the name of one or more shareholders
• LLC may not issue bonds
• Shareholders wishing to transfer their shares in a LLC must first offer them to existing shareholders
• The Statutes of a LLC may prohibit any transfer of shares unless approved by the other shareholders