- Why Egypt?
- Legal System
- ICT Governance
- Soliman, Hashish & Partners
This guide is prepared by:
Non-Egyptian companies are allowed by law to open a representative office in Egypt for the purpose of studying the Egyptian market and/or potentials of productions. However, said representative office may not provide any kind of commercial services in Egypt.
Non-Egyptians may incorporate one of the three following types of companies in Egypt for the purpose of direct investment in the ICT market:
Companies Law allows foreign companies to open their branches in Egypt to perform works of contractual nature. Said branch should be registered in the Commercial Registration Office. Foreign companies should be awarded a contract, such as construction contract, to be performed in Egypt prior to the registration. Non-Egyptian investors usually prefer to open a branch in Egypt to take advantage of Double Taxation Treaties entered into in Egypt.
A manager should be appointed to manage a branch of foreign company in Egypt, and to be a legal representative thereof. This manager can be of a foreign nationality. Registration of a branch of a foreign company takes around 3 working days.
(ii) Joint Stock Company (the “JSC”)
The establishment of the JSC requires a minimum of three (3) founders and a minimum capital of EGP 250,000 (approx. USD 41,666). There are no restrictions on the nationality of the founders. Subscribers are obliged to subscribe to 10% of the issued capital during the formation process of the JSC and subscription should reach 25% during the three (3) months after formation thereof. The remaining unpaid capital should be subscribed within a period of five (5) years. The JSC shall be managed by a Board of Directors which should compose of at least three (3) Board members of any nationality. According to the Income Tax Law, an annual tax shall be levied on the net profits of the legal entities at the rate of 20% of the net annual profits. JSCs are required to file an annual tax return on the form specified by the Executive Regulation of the Income Tax Law to the competent Tax Office and attach such documentation as required by the said regulation, before the first of May every year or within the four months following the end of the financial year.
(iii) A Limited Liability Company (the “LLC”)
LLC requires a minimum of two (2) partners and up to a maximum of fifty (50) partners. There are no restrictions on the nationality of the partners. There is no minimum capital required under Egyptian law with respect to the incorporation of LLC. However, the capital of LLC shall be paid in full upon application for incorporation. According to the Income Tax Law No. 91 for the year 2005, an annual tax shall be levied on the net profits of the legal entities at the rate of 20% of the net annual profits.