bannarTop

GLOBAL INFO

Egypt

COUNTRY:

EGYPT

QUESTION:

ANSWER:

1.      What are the main types of companies in your country?

-        Joint Stock Companies

-        Limited Liability

-        Branches

2.      Which is the most preferred type of company by foreign investors?

Joint stock companies as they can be wholly owned by foreigners (founders, shareholders and board members can all be foreign)

3.      What are the basic capital requirements of this company? (minimum amounts, types of capital, deadline of capital contribution)

-        Minimum capital requirement is 250,000 EGP for Joint stock companies

-        10% of the capital must be paid on establishment, 15% must be paid within three months of establishment and the remaining 75% must be paid within five years of establishment.  

 

4.      What are the basic rules of shareholders liability for company debts in this company?

The liability of a shareholder is limited to the value of the shares subscribed for by him.

5.      What are the basic management requirements for this company? (only natural persons, or nationals can be managers etc.)

The company must be managed by a board of directors which is entrusted with the day-to-day operations of the company, and can represent the company to third parties. The board of directors shall be headed by a chairman who shall be appointed by its directors.

The board of directors must have a minimum of three members at all times. There are no nationality requirements for board members.  There must be a means of employee participation in management, either through board membership, share ownership or the establishment an administrative committee from among the employees.

6.      How long does the registration procedure of this company take?

It usually takes 3 weeks – 1 month to register a company here in Egypt

7.      What are the main costs of formation of this company in local currency?

•                Notary public fee: 0.25% of capital (minimum of EGP 10 and a maximum of EGP 1,000)

•                Establishment fees: 0.1% of capital (minimum of EGP 100 and maximum of EGP 1,000 according to Article 17 (d) of the Companies Law)

•                Commercial Syndicate fee: EGP 125 (for capital less than or equal to EGP 500,000) or EGP 250 (for capital more than EGP 500,000)

•                Publication fee: EGP 150 (for a limited liability company in Arabic) or EGP 300 (for a limited liability company in Arabic and English)

•                Chamber of Commerce fees: 0.2% of capital (minimum of EGP 24 and maximum of EGP 2,000)

•                Commercial registration: EGP 56

•                Issuance of operation certificate: EGP 29        

8.      What is the average attorney’s fee of the formation of this company in local currency?

Around 20,000 EGP (approximately $2200) this includes all taxes

9.      What are the basic publicity requirements of this company (filing of company changes, financial reports, etc.)

The company must publish in the company’s magazine any changes made to the form of the company, its name, address or anything else written in the company’s articles of association.

They must also publish information regarding liquidation, including: the name of the liquidator and the partners' agreement on the mode of liquidation, the sentence issued, revocation of the liquidator, or the termination of the liquidation.

The same rules apply for any mergers that the company undergoes.

 

10.   What are the main auditor requirements?

-        All companies have to present an audit report, an assessment, income statement and a profit and loss account to their shareholders each year.

 

-        For companies that are being publically traded, a detailed activity report must be presented every three months after the initial public offering. On the last day of the fiscal year, the company must also report back to EFSA with a report of its activities and accounts.

 

-        Finally, the laws state that each year, a progress report and a report of the accounts, before certification, must be sent to the Capital Market Authority one month after the fiscal year end at the latest. The certified accounts cited on the Official Schedule 1 must also be published in two reference journals of which at least one must be in the Arabic language.