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Ease of Doing Business in

Alexandria - Egypt, Arab Rep

Region Middle East & North Africa
Income Category Lower middle income
Population 91,508,084
GNI Per Capita (US$) 3,340.00

This page summarizes Subnational Doing Business in Egypt, Arab Rep 2014 data for Alexandria. The first table shows its rank among 15 cities/regions in Egypt, Arab Rep. The rest of the tables summarize the key indicators for each topic and benchmark against regional and high-income economy (OECD) averages.

Topic Rankings Rank among 15 cities in Egypt, Arab Rep Top city in Egypt, Arab Rep
Overall 0 Alexandria
Starting a Business 1 Alexandria
Dealing with Construction Permits 15 Suez
Registering Property 4 Port Said
Enforcing Contracts 11 Damietta
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Standardized Company
Legal form: Sharikat that Massouliyyah Mahdoodah
Paid-in minimum capital requirement: 0
City: Alexandria
Indicator Alexandria Middle East & North Africa OECD
Procedure (number) info_outline 7.0 7.8 4.8
Time (days) info_outline 8.0 20.1 8.3
Cost (% of income per capita) info_outline 9.7 26.3 3.1
Paid-in min. capital (% of income per capita) info_outline 0.0 11.2 9.2
  • No. Procedure Time to Complete Associated Costs
    1

    Obtain a Certificate of Non-Confusion to reserve the company name at the Commercial Registry office in the General Authority for Investment and Free Zones (GAFI) one-stop shop in Alexandria

    Investors must reserve a company name at the General Authority for Investment and Free Zones (GAFI) one-stop shop. The Investment Services Department of the GAFI one-stop shop in Alexandria will first check the legality of the proposed company name. Once the name is deemed to be legally admissible, the Investment Services Department will send a fax to the central Commercial Registry office in Cairo. The Commercial Registry in Cairo will check that the desired company name is not in use and will issue the Certificate of Non-Confusion (shahadat adam al-iltibas) within a few hours and fax it back to the one-stop shop in Alexandria.

    There is a new fee of EGP 25 for this procedure according to the Internal Trade Development Authority’s new Administrative Decree No. 25 of 2013 (January 28, 2013).
    1 day EGP 25
    2

    Obtain a certificate from an authorized bank and open a bank account

    The Commercial International Bank (CIB) branch at the GAFI one-stop shop issues and delivers the certificate within 1-2 days. Investors can go to this bank branch or any authorized bank to obtain the bank certificate and open a bank account. Upon an agreement between GAFI and the Central Bank, investors do not need to submit the articles of association to the bank in order to obtain the bank certificate.
    1 day EGP 400 (EGP 250 for the bank certificate + account opening fees ranging from EGP 100 to 200)
    3

    Submit documents to the Department of Companies in the GAFI one-stop shop in Alexandria and obtain invoice

    The investor needs to submit the approved company contract, along with the rest of the required documentation, including the Certificate of Non-Confusion (shahadat adam al-iltibas) issued by the Commercial Registry and the powers of attorney. The investor deposits the documents at the reception desk, where they are reviewed immediately by a lawyer. The employee of the division reviews the documents and issues an invoice detailing all the cost mentioned above for the company's establishment which should be paid at once in a single payment at the CIB bank branch in the one-stop shop.

    Decree No. 282 of 2007 allows corporations to determine in the constitutive contract the name of the chairman, the vice chairman and the CEO and their responsibilities before incorporation enabling the corporations to immediately withdraw cash from the companies under incorporation account at the bank after registering in the Commercial Registry.

    All the fees for company establishment are paid at this stage, including:
    a. Notary public fee: 0.25% of start-up capital (minimum of EGP 10 and a maximum of EGP 1,000);
    b. Establishment fees: 0.1% of start-up capital (minimum of EGP 100 and maximum of EGP 1,000 according to Article 17 (d) of the Companies Law);
    c. Commercial Syndicate fee: EGP 125 (for start-up capital less than or equal to EGP 500,000) or EGP 250 (for start-up capital more than EGP 500,000);
    d. Publication fee: EGP 150 (for a limited liability company in Arabic) or EGP 300 (for a limited liability company in Arabic and English);
    e. Chamber of Commerce fee: 0.2% of capital (minimum of EGP 24 and maximum of EGP 2,000);
    f. Commercial registration fee: EGP 56; and
    g. Operation certificate fee: EGP 29.
    1 day EGP 1,400 (see comments)
    4

    Notarize the company contract at the Investment Notarization Office in the GAFI one-stop shop in Alexandria

    The articles of association must be registered and certain documents deposited with the Investment Notarization Office at the GAFI one-stop shop. The documents requiring notarization include:
    a. Original certificate of non-confusion of the company name;
    b. Original certificate from an authorized bank;
    c. A copy of the powers of attorney from the founders to their representative;
    d. A copy of the founders' ID cards or passports;
    e. Security clearances for foreign partners (if relevant);
    f. Original certificate indicating that the company's auditor is listed at the Registry of accountants and auditors;
    g. Application provided by GAFI; and
    h. 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).
    1 day No cost
    5

    Obtain the notification of incorporation from the Department of Companies in the GAFI one-stop shop in Alexandria

    When the company contract has been submitted, the competent authority must ratify the articles of incorporation and give the applicant a certificate indicating that all the required papers have been submitted. This certificate allows for the registration of the company in the Commercial Registry. This certificate is issued within 24 hours following the submission of the notarized contract. The company assumes legal responsibility and judicial personality from the date of registration. Where the competent authority has no objection, the Department of Companies is thereafter responsible for publishing the announcement of the company establishment in the Investment Gazette at the expense of the company.
    1 day No cost
    6

    Register for taxes at the Investment Tax Office in the GAFI one-stop shop in Alexandria

    Tax registration (including obtaining the tax card) can be completed at the Investment Tax Office at the GAFI one-stop shop in Alexandria once incorporation is completed. The Investment Tax Office issues a receipt/temporary ID with all the details on the same day, which allows the company to proceed with its operations. This temporary document is valid for 30 days. The Tax officer in Assuit will submit the request the same day as it is received to the Tax Authority office in Cairo for printing (all printing is done centrally in Cairo). Once printed, the office in Cairo will mail the tax ID to Alexandria within a couple of days via express mail.

    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.
    1 day No cost
    7

    Open a company file and register employees with the National Authority for Social Insurance at the GAFI one-stop shop in Alexandria

    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 (Form 1 and 2) and the following documents to the competent office:
    a. Company’s commercial registration;
    b. Company’s tax card;
    c. Company’s articles of incorporation;
    d. Deed or lease agreement for company premises;
    e. Employer to fill in Form No. 2;
    f. Employer’s bank signature certificate;
    g. Employer’s graduation certificate;
    h. Employees’ to fill in Form No. 1;
    i. Employees’ copy of identification card;
    j. Employee’s graduation certificate; and
    k. 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 usually undergo inspection.

    2 days No cost