Do you want to start and run a successful company in Egypt? Follow the tips and tricks in this article to achieve your goals! Read Here!
How to Start a Business in Egypt
No wonder many people seek to open their businesses in Egypt. The country has many advantages for businesspeople: low cost, assistance from the state, and the absence of any obstacles to foreign investment. However, to properly open a business, it is essential to study the legislation of this country well. Today’s article will give you a few practical tips for starting a business in Egypt. Read on!
Understand the Laws
There are some restrictions on foreigners who want to develop a business a certain way. Foreign companies are allowed to open branches or representative offices. However, such companies will only be allowed to study the market conditions and carry out preparatory operations for future implementation.
Personal intermediary and commercial activities within Egypt will be prohibited. Foreign companies can organize a trading network and promote their services and goods. But for this, you will have to agree with a commercial agent (distributor) and register your representative office in accordance with the laws of the country.
Types of Businesses in Egypt
There are different forms of business within Egypt, but a foreigner will only be able to open the following:
Private enterprise: if you want to open such a form of business or ownership, you must not have any partners. Likewise, there is no legislative requirement for the presence of authorized capital.
Limited Liability Company: If you want to open a limited liability company, there must be at least two partners. The total amount of the authorized capital must be at least nine thousand dollars. No more than two managers are allowed in the company’s management, one of which must be an Egyptian.
Joint Stock Company: An open joint stock company will require a minimum of three shareholders and the size of the authorized capital of 45 thousand dollars.
General Partnership: A simple form of entrepreneurship since only two partners are required, and there are no requirements for authorized capital.
Limited Partnership: The presence of three partners and approved capital of 40 to 45 thousand dollars will enable you to freely open this form of company or business. In any business, one fact is important: a foreigner can own no more than 49% of the authorized capital and 51% from an Egyptian partner.
Find a Reliable Business Partner and Lawyer
The choice of a partner should be taken very responsibly. He needs to be trusted like himself. Otherwise, there is a significant risks of being left without advantages, profits, and the business itself.
The presence of a lawyer is optional but highly recommended because even the Egyptians use their services. Ordinary citizens will have to spend much time dealing with documents, standing in lines for more than one day, and filling out various forms.
On the other hand, lawyers have connections, understand the essence of the work of various bodies, and can legitimately speed up the procedure of a particular process, which is very important.
Complete the Documentation
The businessman himself or the lawyer who will deal with the registration of a business in Egypt must receive only two documents to start his own company: a tax registration certificate and permission from the Chamber of Commerce to conduct business.
A book of tax reporting will be issued with the receipt of the certificate. The Chamber of Commerce permits to conduct of a specific type of business activity. However, it can specify more than one, even if they are unrelated.
Final Words
Opening a business in Egypt has certain risks and difficulties. Registering a company without the help of a lawyer looks like an overwhelming task. However, it is worth your time and money. The purpose is to streamline the entire process. Follow the tips above to achieve your goals. Until Next Time!
- Article based on personal opinion, experience and research.
- Photos from Unsplash & canva.