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Doing Business in Egypt
 
 
 

General

Foreign individuals/companies wishing to conduct business in Egypt may do so by establishing a formal, permanent presence in Egypt. Egyptian law permits foreign investors in Egypt to establish any of the following types of companies:

•Limited Liability Company;
•Commandite Company Limited by Shares; or
•Joint Stock Company.

A foreign investor may decide not have a permanent presence in Egypt, instead setting up a branch or representative office, or appointing a commercial agent to sell and distribute products in the Egyptian market.

Forms of Business Organisation

Limited Liability Company (LLC)

An LCC may be formed with a minimum of two shareholders and a maximum of 50 shareholders. If the number of shareholders should fall below two at any time, the LCC will be deemed wound up by operation of law. There is no minimum Egyptian shareholding required to form an LCC.

The founding shareholders of the LCC must submit an application requesting permission to incorporate an LCC. The Ministerial Decision Implementing the Commercial Companies Law outlines the mandatory provisions that must be included in the Memorandum of Association.

The LLC is incorporated once it is registered in the Commercial Register. The LLC must also maintain a Register of Partners in its head office, which must contain the names, nationalities, domiciles and occupations of the partners; the number of shares owned by each partner; the sum paid by each; and the assignment or transfer of shares and related relevant information.

The name of the LLC must be derived from the object of the company and may include the name of one or more of its partners/shareholders. Additionally, the words “Limited Liability Company” must be included in the name.

Capital
The minimum share capital required to form an LLC is £E50,000. The capital must be divided into equal shares, either in cash or in kind, and the value of each share must be at least £E100. Each partner/shareholder is liable to the extent of the value of his shares and no share certificates are issued.

Management
The management of an LLC may be vested in one or more managers. At least one manager must be of Egyptian nationality. The manager(s) must be named in the Memorandum of Association but need not be a shareholder(s). The manager(s) may be appointed for a definite term (which must be specified in the Memorandum of Association) or for an indefinite term. The manager(s) shall have full authority to represent the LLC vis a vis third parties, unless such authority is limited or qualified by the Memorandum of Association. A shareholders’ resolution limiting the authority of the manager(s) will not be valid unless it is entered in the Commercial Register. A supervisory board is required if the LLC has more than ten shareholders of which at least three must be shareholders.


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