Set up a company in Egypt.
The largest MENA economy by population — ~110 million consumers. 22.5% flat CIT, no statutory minimum capital for an LLC, 100% foreign ownership in most sectors. BRICS+ member since 2024. AfCFTA, COMESA and EU Association Agreement access — all coordinated through our Cairo office.
To set up a company in Egypt, you choose a legal structure (most commonly a Limited Liability Company — LLC, equivalent to a UK Ltd or German GmbH), prepare the Articles of Association, secure approval from the General Authority for Investment and Free Zones (GAFI), register at the Commercial Registry via the Ministry of Trade, and complete tax registration with the Egyptian Tax Authority (ETA).
Standard formation takes 2 to 4 weeks for an LLC. There is no statutory minimum share capital for an LLC — partners set the figure. CIT is a clean 22.5% flat rate. VAT is 14%, though the registration threshold drops from EGP 500,000 to EGP 250,000 from 2026 under Law No. 157/2025 — pulling more SMEs into VAT scope.
Grant & Graham’s Cairo office coordinates the entire process — structure advice, GAFI approval, Commercial Registry filing, banking introductions, ETA tax registration, e-invoicing setup, NSSF employer registration, and ongoing compliance — through senior advisers on the ground in Egypt.
22.5% CIT. 14% VAT. Stable headline rates — tightening administration.
Egypt’s headline tax rates have been stable for years: 22.5% CIT and 14% VAT. The 2025/2026 reform programme — backed by the IMF’s USD 8 billion Extended Fund Facility — focuses on administration, not rates: Law No. 157/2025 broadens the VAT base, mandatory e-invoicing penalties tighten from 2026, and the VAT registration threshold drops from EGP 500,000 to EGP 250,000. Construction services moved from a 5% schedule rate to the standard 14% VAT. Plan for tighter compliance, not higher rates.
Other notable items: Personal income tax progressive up to 27.5%. Social insurance: 18.75% employer + 11% employee on capped insurable salary (EGP 16,700/month as of Jan 2026). Stamp duty applies to various commercial documents under Law No. 111/1980. The Egyptian Tax Authority (ETA) e-invoicing system has been mandatory since 2023 — penalties tighten from 2026 with tiered fines and potential business restrictions for non-compliance. Egypt is a BRICS+ member since January 2024 and party to the EU–Egypt Association Agreement, AfCFTA, COMESA and the Agadir Agreement.
Nine reasons businesses choose Egypt.
The largest economy in MENA by population, the strategic gateway between Africa, Asia and Europe via the Suez Canal, and one of the few jurisdictions with simultaneous AfCFTA, COMESA, EU Association and BRICS+ access.
110 million domestic market
The largest population in MENA and the third-largest in Africa — a single, predominantly Arabic-speaking domestic market with a growing middle class and significant infrastructure investment driving consumption.
No LLC minimum capital
Egyptian LLCs have no statutory minimum share capital — partners decide the figure based on operational needs. Genuinely one of the lowest barriers to entry for a serious mainland jurisdiction in MENA.
Suez Canal & SCZONE
The Suez Canal handles ~12% of global trade. The Suez Canal Economic Zone (SCZONE) offers free-zone status, customs preferences and infrastructure-grade incentives across six industrial zones for export-focused manufacturing and logistics.
AfCFTA & COMESA access
Egypt is a founding member of the Africa Continental Free Trade Area (AfCFTA) and the Common Market for Eastern and Southern Africa (COMESA) — together giving preferential access to a combined African market of 1.4+ billion people.
EU Association Agreement
The EU–Egypt Association Agreement provides preferential goods access to the EU single market. The EU is Egypt’s largest trade partner and the agreement underpins industrial export competitiveness for manufacturing investment.
BRICS+ member since 2024
Egypt joined BRICS+ in January 2024 alongside the UAE, Saudi Arabia, Iran and Ethiopia. Diversifies Egypt’s economic positioning, with access to BRICS+ capital flows and trade frameworks alongside its Western relationships.
Technical talent at scale
~700,000+ STEM graduates per year. Significant offshoring and BPO sector centred in Cairo, Alexandria and Smart Village. Strong engineering, software, fintech and BPO talent pools at materially lower cost than UAE or Saudi Arabia.
IMF-backed reform programme
USD 8 billion IMF Extended Fund Facility (extended 2024) is driving structural reform: liberalised FX market, tax administration modernisation, state-owned enterprise reform, and private sector growth. Stronger macro framework than 2022.
New Administrative Capital
The New Administrative Capital (NAC) east of Cairo is a USD 50bn+ greenfield megacity build — government, fintech, smart-city and infrastructure investment opportunities at scale, with specific investment incentives for companies relocating there.
Seven legal structures — one usually fits.
For most foreign investors, the LLC is the practical default. The JSC (SAE) is used for larger entities and regulated activities. Branch and Representative Office are foreign-presence forms with specific restrictions.
Limited Liability Company
The standard structure for trading and holding businesses. Separate legal entity, limited liability. Minimum 2 shareholders. No statutory minimum capital — partners decide. 100% foreign-ownable in most sectors. Quick formation through GAFI.
One-Person Company
Single-shareholder variant introduced under recent reforms. Limited liability. Minimum capital EGP 1,000. Useful for solo founders and wholly-owned subsidiaries. Same legal protection as a multi-shareholder LLC.
Joint Stock Company
Joint-stock company for larger businesses. Minimum 3 shareholders. Minimum issued capital EGP 250,000, with at least 10% paid up at incorporation. Required for banking, insurance and certain other regulated activities. Shares freely transferable.
Sole Proprietorship
Single owner, no separate legal personality, full personal liability. No minimum capital. Generally limited to Egyptian nationals; expatriates typically use an LLC or OPC instead. Used for small-scale local trading and freelance activities.
General Partnership
Two or more partners with unlimited joint and several liability. No minimum capital. Tax-transparent. Used in some professional services contexts. Less common for foreign investors.
Limited Partnership
General partner with unlimited liability and limited partner whose liability is capped at their contribution. Used in some specialist structures and joint ventures. Tax-transparent. Specific governance constraints apply.
Branch
An operating branch of a foreign company. Can conduct commercial activities. Parent retains full liability. Subject to GAFI registration. Branch profits taxed at 22.5% plus 10% branch remittance tax. Used where the parent must remain the legal entity.
Representative Office
Liaison office of a foreign company — limited to representational, marketing and research activities. Cannot conduct commercial transactions or generate revenue in Egypt. Useful for market exploration before fuller commitment.
Talk to us first
LLC is the workhorse for most foreign investors. OPC for solo founders. SAE for regulated activities or share-flexibility. Branch where the parent must remain the legal entity. A 25-minute call usually settles it.
Book a call →From decision to live entity.
The end-to-end registration sequence for an Egyptian LLC — coordinated by Grant & Graham’s Cairo office, with senior local counsel and direct GAFI relationships.
Trade name approval
Submit proposed trade name to GAFI for approval. Have 2 to 3 alternatives ready. Names must be unique and comply with Egyptian naming regulations — no religious, political or governmental terms. Approval typically within 3 to 5 working days.
Articles of Association & shareholder documentation
Draft the Articles of Association (in Arabic, with English translation for foreign shareholders): shareholders, share capital, business objects, board composition, signatory authority. Foreign corporate shareholders submit apostilled good-standing certificate, board resolution and constitutional documents.
GAFI application & approval
Submit the incorporation application to the General Authority for Investment and Free Zones (GAFI). GAFI reviews and issues an incorporation certificate with Official Gazette publication. The GAFI one-stop-shop also handles ancillary approvals where required.
GAFI →Commercial Registry & Tax registration
Register with the Commercial Registry at the Ministry of Trade — issues the commercial registration certificate. Simultaneously register with the Egyptian Tax Authority (ETA) for the Tax Identification Number (TIN) and VAT (where threshold met).
ETA →NSSF social insurance registration
Register with the National Social Insurance Fund (NSSF) for the company and any employees, including managers/directors named in the Commercial Registry. Required even with no third-party employees — directors are insured as employers at a flat rate on capped salary.
E-invoicing setup with ETA
Mandatory integration with the ETA e-invoicing platform via the API. Submit electronic tax invoices for each sale within the day of issuance. From 2026, late-reporting penalties tighten — EGP 5,000 per late document on second offence (capped at EGP 50,000 monthly), EGP 10,000 per invoice on three+ offences, with potential suspension.
Bank account opening
Open the operating bank account at a major Egyptian bank (CIB, QNB Al Ahli, Banque Misr, HSBC Egypt, Citibank Egypt). Bank KYC for foreign-owned LLCs is thorough — allow 2 to 4 weeks. Source-of-funds, UBO and parent documentation prepared in advance speeds the process materially.
Sector-specific licensing
Where the business activity requires regulatory approval (banking/insurance from the Financial Regulatory Authority; telecoms from NTRA; food/health from MoH; tourism from MoT), the sector licence is obtained in parallel. Timing varies materially. Free-zone or SCZONE licensing is a separate parallel track.
Ongoing compliance
Quarterly CIT advance payments. Monthly VAT returns. Monthly NSSF and payroll filings. Annual financial statements in line with Egyptian Accounting Standards. Annual CIT return. E-invoice real-time reporting. Annual UBO confirmation. Statutory audit triggered by activity, sector and size.
What it costs to incorporate & run.
All figures are indicative for a standard LLC setup with one or two foreign shareholders. Egypt is materially cheaper than the GCC for setup and ongoing costs — reflecting both currency factors and the local professional services market.
One-time setup
Excludes any sector-specific licensing fees and the share capital itself (partners’ choice for an LLC). Free-zone or SCZONE incorporation has its own fee schedule. Pricing in EUR reflects floating EGP; quoted in EGP at scoping stage.
Ongoing monthly / annual
Audit required for JSCs, regulated entities, and LLCs above certain size thresholds. Smaller LLCs may be audit-exempt. E-invoicing penalties tighten materially from 2026 — allocate budget for compliance, not just setup.
The legal framework to know.
A summary of the core legislation governing companies in Egypt — substantive work is delivered through senior Egyptian counsel.
Corporate Law
- Companies Law Law No. 159 of 1981
- Investment Law Law No. 72 of 2017
- Civil Code (contracts & obligations)
Tax Law
- Income Tax Law Law No. 91 of 2005
- VAT Law Law No. 67 of 2016, amended by Law No. 157/2025
- Stamp Duty Law Law No. 111 of 1980
Employment Law
- Labour Law Law No. 14 of 2025
- Social Insurance Law Law No. 148 of 2019
- Work permits & foreign employment rules
Data Protection
- Personal Data Protection Law Law No. 151 of 2020
- Data Protection Centre (DPC)
- Telecom Regulation Law (NTRA)
Free Zones & SCZONE
- Investment Law Free Zone provisions
- SCZONE Law Law No. 83 of 2002
- Special economic zone incentives
Intellectual Property
- IP Protection Law Law No. 82 of 2002
- Trademark, patent & copyright provisions
- Egyptian Patent Office
Egypt, answered.
Four steps from enquiry to live entity.
Discovery call
30-minute conversation to understand your business, sector, shareholder structure, free-zone vs mainland questions, and what you actually need from the Egyptian entity.
Recommendation
Senior advisory on the right structure (LLC, OPC, SAE, Branch, Free Zone), sector licensing pathway, banking partner, and tax regime. Fixed quote in EUR or EGP.
End-to-end formation
GAFI approval, Commercial Registry filing, ETA tax and VAT registration, NSSF setup, e-invoicing integration, banking introductions, sector licensing where needed.
Ongoing support
Retained accounting, VAT compliance, e-invoice reporting, payroll, annual filings, audit coordination where required, and structural changes as you scale.
Ready to incorporate in Egypt?
Tell us in 25 minutes what you need. Our Cairo team will tell you honestly whether Egypt is the right MENA jurisdiction — and if it is, we’ll handle the setup end-to-end.