Alzayat Law Firm is a full-service law firm providing top-tier legal services for clients looking for help in setting up a Limited Liability Company (LLC) in Egypt. Our experienced attorneys provide comprehensive advice and representation throughout the entire process. From selecting the right business structure, preparing and filing the required documents, to obtaining all the necessary government certifications and registrations, our legal team has the expertise you need to establish and run your LLC in compliance with state and federal laws. Let us put our expertise to work for you – contact us today to get started on your LLC journey.
Guide to Establishing an LLC in Egypt
When investors consider forming a business in Egypt, many opt for the Limited Liability Company (LLC) structure. This is due to several advantages, especially the limited liability aspect, where partners’ liabilities are restricted to the value of their shares in the company.
A. Registration Process:
- Commercial Registry: LLCs must register with the Commercial Registry. They also fall under the oversight and scrutiny of GAFI (General Authority for Investment and Free Zones).
- Naming the LLC: The company needs a trading name upon establishment. This name can also incorporate the name or title of one or more founders.
B. Business Purposes and Restrictions:
- Prohibited Activities: LLCs cannot engage in certain operations, such as insurance, banking, savings, investing funds on behalf of others, and investment management.
- Permitted Activities: Outside of the restricted domains, LLCs can conduct any legal commercial activity like any other business form, adhering to the confines of all relevant laws and regulations.
C. Management Structure:
- Foreign Management: Egyptian law permits foreigners to manage LLCs fully. There’s no stipulated cap on foreign ownership of capital.
- Ownership Restrictions: A single individual cannot solely own an LLC in Egypt. Thus, a minimum of two partners is mandatory.
- Managerial Appointments: Partners appoint managers. While there can be multiple managers, there’s no requirement for any manager to be an Egyptian national.
D. Capital Requirements:
- Minimum Capital: The threshold for share capital to establish an LLC is 1,000 EGP.
- Share Division: Distribute the capital into uniform shares, whether monetary or in kind. Each share’s minimum value should be 10 EGP.
E. Taxation:
- Corporate Taxes: Companies are liable to pay taxes on their profits.
- Tax on Foreign Shareholders: For companies with foreign shareholders, any amounts paid to non-residents in Egypt by Egyptian residents or entities with a permanent establishment in Egypt will incur a 20% tax. This tax is levied without any deductions, as stated in Article 56 of the Income Tax Law No. 91 of 2005.
If you are interested in establishing a Limited Liability Company and have business in Egypt, we can help you at AlZayat law firm. A full-service law firm that aims to provide our clients with distinctive quality services and innovative legal solutions. We have professional corporate legal consultants, and we have a bright record of incorporations established by us in Egypt and the Middle East.
Our team of experienced corporate lawyers will help you through the two phases of incorporation procedures. Our role at the pre-incorporation phase consists of the incorporation procedures, extracting a Commercial Register and a Tax Card. Then, the phase post corporation in which we will help you to open a bank account in Egypt so you can proceed with all your financial proceedings. Also, in case you wanted to recruit foreign/local labor or a foreign manager, we will help you with the proceedings, the required documents and required licenses.
ALZAYAT International Law Firm: Your Global Legal Partner
ALZAYAT International Law Firm stands out as a premier legal institution with a sophisticated global Private Clients practice. Thanks to our unmatched global resources, we can offer all-inclusive services tailored to our clients’ unique needs, no matter where their assets or loved ones are located.
Our global reach and expertise make us the go-to choice for handling intricate cases that span multiple jurisdictions. This prowess is evident as our clients trust us with some of the most significant cases in this realm.
Renowned legal directories and platforms such as The Legal 500 , hg.org and Global Law Expert recognize our specialists as top-tier experts in this field.
Should you have any questions or need guidance, please reach out to us.. We’re here to assist.