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Starting a Business in Egypt
 
 
 

Standardised Company

Procedure 1. Obtain a certificate from an authorised bank

The Bank of Alexandria branch at the General Authority for Free Zones and Investment (GAFI) issues and delivers the certificate in 1-2 days. The bank certificate cost between £E300 to £E500, depending on the bank. This certificate can be obtained also from other authorised banks.

Time to complete:

1-2 days

Associated costs:

£E300 to £E500


Procedure 2. Submit documents to the Department of Companies and obtain invoice

The founder deposits the company documents at the reception desk, where they are reviewed immediately by a lawyer. A registry employee reviews the documents, and issues a detailed invoice for all fees associated with the company's establishment.

Fees for company establishment:

• Notary public fee: 0.25% of capital (minimum of £E10 and a maximum of £E1,000 );
• Establishment fees: 0.1% of capital (minimum of £E100 and maximum of £E1,000 according to Article 17 (d) of the Companies Law);
• Commercial Syndicate fee: £E125 (for capital less than or equal to £E500,000) or £E250 (for capital more than £E500,000);
• Publication fee: £E150 (for a limited liability company in Arabic) or £E300 (for a limited liability company in Arabic and English);
• Chamber of Commerce fees: 0.2% of capital (minimum of £E24 and maximum of £E2,000);
• Commercial registration: £E56;
• Issuance of operation certificate: £E29

Time to complete:

1 day

Procedure 3. Notarise company’s contract

The articles of association must be registered and certain documents deposited at with the Investment Notarisation Office at GAFI in the one-stop shop, these documents are:

• original certificate of non confusion;
• original certificate of an authorised bank;
• a copy of the powers of attorney from the founders to their representative;
• a copy of the founders' ID cards or passports;
• security clearances for foreign partners;
• original certificate indicating that the company's auditor is listed at the Registry of accountants and auditors;
• the application provided by GAFI;
• stamped articles of association.

No stamp duty is levied, according to the amendments (published on July 1, 2006) to the Stamp Duty Law (No. 111 of 1980). Required are the original copies of the articles of association and the powers of attorney.

Time to Complete:

1 day

Associated costs:

Included in Procedure 2

Procedure 4. Obtain the notification of incorporation

When the articles of association are submitted, the competent authority must ratify them and issue a decree approving the establishment of the company. This decree is issued within 24 hours. Further, the applicant obtains the approval of the Chamber of Commerce and fills an application in order to obtain an extract of the commercial registry. After the lapse of 15 days the company assumes legal responsibility and judicial personality. Within the 15 days if the competent authority has no objection, the Department of Companies is thereafter responsible for publishing the notice of incorporation in the Investment Gazette at the company's expense.

Time to complete:

1 day

Associated costs:

No charge

Procedure 5. Register for taxes

Upon incorporation, the company can complete tax registration and obtain the tax card at the one-stop shop’s tax counter. Upon obtaining the card, the company may choose to register for sales tax, provided that they have started production. Companies are obliged to register for sales tax only once they reach at least £E54,000 in sales for industrial activities and £E150,000 in sales for commercial activities. The required documents include the articles of association and the powers of attorney, the bank signature authentication (to be issued to the appropriate person by the manager having the power to sign on behalf of the company), the tax card, an original extract from the company’s commercial register, and the original copy of the company’s lease agreement for its premises. A new reform took place recently that will further reduce the time for this procedure a result of automation of the tax office at the OSS and the tax authority.

Time to complete:

1 day

Associated costs:

No charge

Procedure 6. Register employees with the National Authority of Social Insurance

Social insurance provides compensation for disability, retirement (pension), unemployment, and work-related injuries. By law, employers are required to subscribe to the social insurance system. Otherwise, they may be subject to sanctions.

The employer must submit a fully completed, authority-issued application (No. 1 and 2) and the following documents to the competent authority’s office:

• employer’s lease agreement for company premises;
• employer’s tax card;
• employee’s identification card and birth certificate (copy);
• employee’s and employer’s graduation certificate.

Time to complete:

2 days

Associated costs:

No charge

 

 
 

 



 


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