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Just like any other part of the world, starting a new business in Alexandria, Egypt requires compliance with certain legal guidelines and rules to ensure legitimacy and lawful operations. The Commercial Law No. 17 of 1999 is the fundamental business law regulating commercial activities in Egypt. Other important legislations include the Companies Law No. 159 of 1981, the Investment Law No. 72 of 2017, and the SMES Law No. 151 of 2020.
Engaging a lawyer in your new business formation process is crucial for several reasons. Considering the complexity and the number of laws regulating business affairs in Egypt, a lawyer can guide you through all the legal requirements, providing invaluable advice and ensuring all legal documents are appropriately prepared and filed. Mistakes during the formation process can lead to legal issues and financial losses in the future. Additionally, a lawyer can help in drafting contracts, negotiating agreements, protecting intellectual properties, and handling any potential disputes.
The Companies Law in Egypt regulates the incorporation, governance, and operation of companies selling shares to the public. The Investment Law No. 72 of 2017 provides incentives and guarantees to foreign investors. The SMEs Law No. 151 of 2020 seeks to support small and medium-sized enterprises through financial and non-financial incentives.
There are several types of companies you can establish as per the Companies Law, including Joint Stock Companies, Limited Liability Companies, and Partnerships Limited by Shares.
The capital requirements vary according to the type of company. For a Limited Liability Company, the minimum capital required is 1000 EGP.
Foreign investors can legally own 100% of the capital of their companies except for activities listed under the Negative List defined by the Investment Law and other specific laws.
The income tax has a flat rate of 22.5% for most businesses. Understanding Egyptian tax law can be complex, highlighting the value of engaging a local tax expert.
Yes. The trade name of your company must be registered. It must be unique, easy to pronounce and cannot be deceptive in nature.
The General Authority for Investment (GAFI) is a key governmental body supporting local and foreign investors. The Egyptian Ministry of Trade and Industry provides valuable information related to the setting up of various types of businesses. Consult these organizations for detailed and updated information.
If you require legal assistance in new business formation, engage the services of a competent local lawyer. Conduct your due diligence and choose a reputable law firm. Ensuring all legal matters are in order from the outset will grant peace of mind as you delve into your chosen business operations.
