Egypt, Arab Rep.

Starting a Business in

Egypt, Arab Rep.

Below is a detailed summary of the bureaucratic and legal hurdles faced by entrepreneurs wishing to incorporate and register a new firm in Egypt, Arab Rep.. It examines the procedures, time and cost involved in launching a commercial or industrial firm with up to 50 employees and start-up capital of 10 times the economy's per-capita gross national income.

This information was collected as part of the Doing Business project, which measures and compares regulations relevant to the life cycle of a small- to medium-sized domestic business in 185 economies. The most recent round of data collection was completed in June 2012.

Compare Egypt, Arab Rep. to 184 other economies.

YearNew business densityNumber of new limited liability companies
2009 0.136,308

  • Standardized Company

  • Legal Form: Sharikat that Massouliyyah Mahdoodah
  • Paid in Minimum Capital Requirement: None
  • City: Cairo

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No. Procedure Time to Complete Associated Costs
1 Obtain a certificate from an authorized bank

The Bank of Alexandria branch at the General Authority for Free Zones and Investment (GAFI) issues and delivers the certificate in 1–2 days. The bank certificate cost between EGP 300 to EGP 500, depending on the bank. This certificate can be obtained also from other authorized banks.
1 day EGP 300-500
2 Submit documents to the Department of Companies and obtain invoice

The founder deposits the company documents at the reception desk, where they are reviewed immediately by a lawyer. A registry employee reviews the documents, and issues a detailed invoice for all fees associated with the company's establishment.

Fees for company establishment:

• 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)
• Publication fee: EGP 150 (for a limited liability company in Arabic) or EGP 300 (for a limited liability company in Arabic and English)
• 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: EGP 29


 1 day see comment
3 Notarize company’s contract

The articles of association must be registered and certain documents deposited at with the Investment Notarization Office at GAFI in the one-stop shop, these documents are:

1. Original certificate of non confusion.
2. Original certificate of an authorized bank.
3. A copy of the powers of attorney from the founders to their represantative.
4. A copy of the founders' I.D. cards or passports.
5. Security clearances for foreign partners.
6. Original certificate indicating that the company's auidtor is listed at the Registry of accountants and auditors.
7. The application provided by GAFI.
8. Stamped articles of association.

No stamp duty is levied, according to the amendments (published on July 1, 2006) to the Stamp Duty Law (No. 111 of 1980). Required are the original copies of the articles of association and the powers of attorney.
1 day included in procedure 2
4 Obtain the notification of incorporation

When the articles of association are submitted, the competent authority must ratify them and issue a decree approving the establishment of the company. This decree is issued within 24 hours. Further, the applicant obtains the approval of the Chamber of Commerce and fills an application in order to obtain an exract of the commercial registry. After the lapse of 15 days the company assumes legal responsibility and judicial personality. Within the 15 days if the comptent authority has no objection, the Department of Companies is thereafter responsible for publishing the notice of incorporation in the Investment Gazette at the company's expense.
1 day no charge
5 Register for taxes

Upon incorporation, the company can complete tax registration and obtain the tax card at the one-stop shop’s tax counter. Upon obtaining the card, the company may choose to register for sales tax, provided that they have started production. Companies are obliged to register for sales tax only once they reach at least EGP 54,000 in sales for industrial activities and EGP 150,000 in sales for commercial activities. The required documents include the articles of association and the powers of attorney, the bank signature authentication (to be issued to the appropriate person by the manager having the power to sign on behalf of the company), the tax card, an original extract from the company’s commercial register, and the original copy of the company’s lease agreement for its premises. A new reform took place recently that will further reduce the time for this procedure a result of automation of the tax office at the OSS and the tax authority.
1 day no charge
6 Register employees with the 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 employer must submit a fully completed, authority-issued application (Nos. 1 and 2) and the following documents to the competent authority’s office:

• Employer’s lease agreement for company premises.
• Employer’s tax card.
• Employee’s identification card and birth certificate (copy).
• Employee’s and employer’s graduation certificate.

2 days no charge
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