Company Formation in Egypt

Egyptian law provides various company types to suit local and foreign investors. Each type has distinct requirements, advantages, and legal implications. Below is a summary of the most common corporate structures under the Egyptian Companies Law No. 159/1981 and Investment Law No. 72/2017:

Limited Liability Company (LLC)

The most popular option for both Egyptian and foreign investors.

• Requires 1 to 50 shareholders

• Shareholders are liable only to the extent of their capital shares

• No requirement for a board of directors

• Must appoint at least one local manager

• Cannot issue shares to the public

• Minimum capital: no legal minimum (typically set according to activity and GAFI guidelines)

• Regulated by the Companies Law No. 159/1981

Best For: Small and medium businesses, service providers, trade companies, and family-run firms.

Joint Stock Company (JSC)

A more complex structure suited to large-scale and public businesses.

• Requires a minimum of 3 shareholders

• Must have a board of directors (minimum of 3 members)

• Shareholders can be individuals or legal entities

• Capital divided into shares that may be publicly traded (if listed)

• Minimum issued capital: EGP 250,000 (EGP 500,000 if listed)

• Mandatory auditor and general assemblies

• Regulated by the Companies Law No. 159/1981

Best For: Large enterprises, financial institutions, construction firms, and publicly traded companies.

One-Person Company (OPC)

A modern structure allowing a single individual to fully own and operate a company.

• Owned by one natural or legal person

• Offers limited liability protection

• Cannot offer shares to public

• Must have a manager (can be the owner)

• Minimum capital: EGP 50,000

• Regulated by recent amendments to the Companies Law

Best For: Sole investors, consultants, freelancers, and entrepreneurs seeking limited liability.

Partnership (Ordinary Partnership)

A traditional structure involving two or more partners sharing profits and liabilities.

• Partners are jointly and severally liable with their personal assets

• Requires registration with the Commercial Registry

• No minimum capital

• Profits and losses are typically divided based on agreement

• Less common among foreign investors due to unlimited liability

Best For: Small family businesses or professional services with full trust among partners.

Limited Partnership (Commandite Company)

A hybrid partnership with two types of partners:

• General Partners manage the business and have unlimited liability

• Limited Partners contribute capital but do not manage and have limited liability

• Requires at least one general partner

• Suitable for businesses with passive investors

Best For: Investors seeking to finance a business without managing it directly.

Foreign Branch Office

Allows a foreign company to operate in Egypt under its original name.

• No Egyptian shareholders required

• Must appoint a resident manager in Egypt

• Can perform commercial activities, sign contracts, and open bank accounts

• Subject to Egyptian tax and labor laws

• Activities must align with those of the parent company

• Requires registration with GAFI and the Commercial Registry

Best For: International companies expanding operations into Egypt without creating a separate legal entity.

Representative Office (Liaison Office)

A non-commercial entity for exploring the Egyptian market.

• Cannot engage in profit-generating activities

• Used for market research, promotional efforts, or partner scouting

• Must be registered with GAFI

• Cannot import, sell, or offer paid services

• Typically a temporary setup before full entry into the Egyptian market

Best For: Foreign investors assessing feasibility or preparing for market entry.

Joint Venture (Consortium)

An agreement between two or more parties (individuals or companies) to cooperate in a specific project or purpose.

• Not always registered as a separate legal entity

• Governed by contract and Egyptian Civil Code

• Common in construction, engineering, and large-scale public-private partnerships (PPPs)

• Can be temporary or long-term

Best For: Strategic partnerships, infrastructure projects, or consortium bids for government contracts.