Company formation in Egypt

Before deciding to set up a new company in Egypt, read the information below to understand the characteristics of a Limited Liability Company (LLC):

Shareholders: minimum 2 shareholders, which can be both individuals and legal entities. The maximum number of shareholders is 50. In general, foreign businesses with 100% full ownership are allowed to be established in Egypt. However, foreigners may face restrictions on conducting certain types of business.

Director: the company must appoint at least 1 director who is an Egyptian resident.

Company secretary: there is no requirement.

Minimum share capital: the minimum capital requirement is EGP 50,000 (~ $1,000).

Legal address: the company is required to have a registered office in Egypt in order to conduct official communications and maintain documents and records.

Liability: shareholders are only liable to the extent of their shares, which offers protection against personal liability for the company's debts.

Accounting: the company is required to file annual financial statements and annual tax returns.

• The CIT is 22.5% on the net taxable profits of a company.
• Non-resident corporations and partnerships pay tax on income derived from their permanent establishments in Egypt.
• Specific rates apply to certain sectors, such as 40.55% for oil exploration and production.

• The rates are the following:
• from EGP 1 (~ $0,020) to EGP 40,000 (~ $800) - 0%;
• from EGP 40,000 (~ $800) to EGP 55,000 (~ $1,100) - 10%;
• from EGP 55,000 (~ $1,100) to EGP 70,000 (~ $1,400) - 15%;
• from EGP 70,000 (~ $1,400) to EGP 200,000 (~ $4,000) - 20%;
• from EGP 200,000 (~ $4,000) to EGP 400,000 (~ $8,000) - 22.5%;
• from EGP 400,000 (~ $8,000) to EGP 1,200,000 (~ $24,000) - 25%;
• more than EGP 1,200,000 (~ $24,000) - 27.5%.
Value-added tax (VAT)


• The standard VAT rate is 14%.
• The reduced rates are 5% (machinery and equipment that are necessary for producing goods or providing services, etc.) and 0% (exported goods and services).
• Compulsory VAT registration applies to businesses with annual taxable sales exceeding EGP 500,000 (~ $10,000).
• Exemptions apply to necessities such as dairy products, certain medical supplies, agricultural goods, financial services and educational materials, etc.

Double taxation avoidance agreements in Egypt: ‍Albania, Algeria, Austria, Bahrain, Belarus, Belgium, Bulgaria, Canada, China, Cyprus, Czech Republic, Denmark, Finland, France, Georgia, Germany, Hungary, India, Indonesia, Iraq, Ireland, Italy, Japan, Jordan, Korea, Kuwait, Lebanon, Libya, Macedonia, Malaysia, Malta, Mauritius, Morocco, Netherlands, Norway, Oman, Pakistan, Palestinian Territories, Poland, Romania, Russia, Saudi Arabia, Serbia and Montenegro, Singapore, South Africa, Spain, Sudan, Sweden, Switzerland, Syria, Tunisia, Turkey, Ukraine, United Arab Emirates, United Kingdom, United States, Yemen.