LLC in Egypt : Complete Guide to Limited Liability Company Formation
Particularly the limited liability aspect where partners’ liabilities are restricted to their share values. Alzayat Law Firm provides comprehensive legal services for establishing your Limited Liability Company in Egypt, with our experienced attorneys guiding you through every step of the process.
Why Choose an LLC in Egypt?
When considering business formation in Egypt, many investors select the LLC in Egypt structure due to its numerous benefits:
- Limited liability protection for shareholders
- Flexible management structure
- 100% foreign ownership permitted
- Relatively straightforward formation process
- Lower capital requirements compared to other business structures
Registration Process for LLC in Egypt
The formation of an LLC in Egypt follows specific procedures governed by Companies Law No. 159 of 1981 and overseen by the General Authority for Investment and Free Zones (GAFI). The process includes:
1. Company Name Selection and Verification
The first step in registering an LLC in Egypt is selecting a unique company name. You must obtain a certificate of non-confusion from the Commercial Registry, proposing several name variations. One of these proposed names will be approved upon completion of the incorporation.
2. Preparation of Required Documents
For establishing an LLC in Egypt, you’ll need to prepare:
- Copies of national ID or passport for each shareholder
- Powers of attorney (original powers must be submitted for verification)
- Bank certificate confirming capital deposit
- Lease agreement for the company’s registered office
- Articles of Association outlining the company’s objectives and structure
3. Capital Requirements
The minimum capital requirements for LLC in Egypt have been subject to recent regulatory changes. As of 2025, investors should consult with GAFI or Alzayat Law Firm for the most current requirements. The capital must be deposited in a bank account opened in the company’s name before registration.
4. Articles of Association
The Articles of Association must be drafted and signed by all shareholders, detailing:
- Company name and objectives
- Capital structure and share distribution
- Management framework
- Duration of the company
- Profit distribution mechanism
5. GAFI Application Submission
Once all documents are prepared, the application for LLC in Egypt registration must be submitted to GAFI, including the Articles of Association, proof of capital deposit, and all other required documentation.
6. Commercial Registry and Tax Registration
Upon GAFI approval, you’ll receive a commercial registry certificate, essential for legal operation. Subsequently, the company must register with the Egyptian Tax Authority to obtain a Tax Identification Number (TIN).
7. Social Insurance Registration
If your LLC in Egypt will have employees, you must register with the Egyptian Social Insurance Organization to ensure employee benefits such as pensions and health coverage.
Business Purposes and Restrictions for LLC in Egypt
Prohibited Activities
An LLC in Egypt cannot engage in certain operations, including:
- Insurance services
- Banking activities
- Savings institutions
- Investing funds on behalf of others
- Investment management
Permitted Activities
Outside these restricted domains, an LLC in Egypt can conduct any legal commercial activity, adhering to relevant laws and regulations.
Management Structure for LLC in Egypt
Foreign Management
Egyptian law permits foreigners to fully manage an LLC in Egypt with no cap on foreign ownership of capital. However, it’s important to note that a single individual cannot solely own an LLC in Egypt—a minimum of two partners is mandatory unless establishing a single-member company under the exception of Article 505 of the Civil Code.
Managerial Appointments
Partners appoint managers for the LLC in Egypt. While there can be multiple managers, there’s no requirement for any manager to be an Egyptian national.
Taxation for LLC in Egypt
Corporate Taxes
Companies are liable to pay taxes on their profits according to current Egyptian tax law.
Tax on Foreign Shareholders
For an LLC in Egypt with foreign shareholders, amounts paid to non-residents by Egyptian residents or entities with a permanent establishment in Egypt incur a 20% tax without deductions, as stated in Article 56 of the Income Tax Law No. 91 of 2005.
How Alzayat Law Firm Can Help with Your LLC in Egypt
As a full-service law firm with professional corporate legal consultants, Alzayat Law Firm has an outstanding record of successful incorporations in Egypt and across the Middle East. Our experienced team will guide you through both pre-incorporation and post-incorporation phases:
Pre-Incorporation Services
- Name verification and reservation
- Preparation of Articles of Association
- Capital deposit assistance
- Document preparation and submission
- Commercial Register and Tax Card extraction
Post-Incorporation Services
- Bank account opening assistance
- Foreign/local labor recruitment procedures
- Foreign manager appointment assistance
- Required licenses and permits acquisition
Frequently Asked Questions About LLC in Egypt
What are the current capital requirements for an LLC in Egypt?
The minimum capital requirements for LLC in Egypt have been subject to recent regulatory changes. As of 2025, investors should consult with GAFI or Alzayat Law Firm for the most current requirements.
Can foreigners own 100% of an LLC in Egypt?
Yes, Egyptian law permits 100% foreign ownership of an LLC in Egypt with no restrictions on capital ownership by non-Egyptians.
How many partners are required to form an LLC in Egypt?
A minimum of two partners is required , as a single individual cannot solely own an LLC under standard circumstances. However, recent legal provisions allow for single-member companies under specific conditions.
What are the main steps for registering an LLC in Egypt?
The main steps include name selection and verification, document preparation, capital deposit, drafting Articles of Association, GAFI application submission, commercial registry certification, and tax registration.
What business activities are prohibited for an LLC in Egypt?
cannot engage in insurance, banking, savings, investing funds on behalf of others, or investment management activities.
Contact Alzayat Law Firm for LLC Formation in Egypt
Alzayat Law Firm offers the expertise and support you need. Our team of experienced corporate lawyers will help you navigate the incorporation process efficiently and ensure compliance with all legal requirements.
ALZAYAT International Law Firm stands out as a premier legal institution with sophisticated global resources and expertise. We’re recognized by respected legal directories including The Legal 500, hg.org, and Global Law Expert.
For guidance on establishing your LLC in Egypt or any questions about the process, please contact us today. We’re here to assist you through every step of your business formation journey.