The Set-out Procedural Framework to Register Company in Egypt
Egypt is a Northern African country bordering the Mediterranean and the Red Seas, Israel, Libya, and Sudan. Within this populous country (90 million), an investor can register a company in Egypt and enjoy some tax incentive and modern infrastructural development.
Why Incorporate in Egypt?
Foreign investors wishing to register company in Egypt have a chance to get into the market by launching a permanent legal structure. Through the Investment Law, Egypt’s comprehensive economic reforms package gives privileges to companies that operate in any of the following activities: manufacturing and mining, tourism projects, transportation, and infrastructure.
Besides that, local, Arab and foreign investors will be benefiting from guarantees and incentives concerning activities falling under the Investment Law. Other additional guarantees and incentives include tax and custom.
The Process of Registration
The business environment in Egypt is now more than ever lucrative, given the law’s simplified procedure. Every effort to register company in Egypt is more straightforward, thanks to the new CRA system by Sakhr that accurately implements the Trade Name Law. Incorporating a company or business may be challenging, especially for a foreigner trying it for the first time. However, with the existence of 3E Accounting—a business consultant service provider—the process is easier and faster. The service provider offers several other professional services, including the following:
- Corporate secretarial services
- Human Resource services
- Auditing and Accounting services
- Legal and Taxation services
- Incorporation of Companies
An applicant can get their services by contacting their lines or online. 3E Accounting is a one-stop-shop for business solution services.
Let’s look at the procedures on how to register company in Egypt.
Procedure 1: Company Name Clearance
According to Trade Name law, every business must operate under a business name. Now, in Egypt, any trade name must get clearance with the Commercial Registry. Name check and verification are done by Egypt’s new system—the CRA. Before submitting the business name, applicants must ensure it’s distinct. This will make it easier for the CRA in the verification process against numerous registered companies. When that process is done, the system will reserve the name for 30 days. In the end, the Commercial Registry will issue the applicant with a certificate.
Procedure 2: Securing of Bank Certificate From Accredited Bank
One of the procedures for an applicant to register company in Egypt is opening a bank account to secure a bank certificate. The General Authority for Investment and Free Zones (GAFI) through the Bank of Alexandria will issue and deliver the certificate within a week or fortnight. Remember that the cost of the bank certificate will vary on the different banks and maybe between EGP200-500.
Procedure 3: Statutory Documents Submission
The presentation of the statutory documents is one crucial procedure. The executives will submit the relevant company documents to the Companies Establishment Department under the General Authority for Investment and Free Zones (GAFI) for review. The legal attorney then reviews the legitimacy of the documents awaiting further directives. Here are some of the required documents:
- Company Name Clearance Certificate.
- The Original Bank Certificate.
- A Power of Attorney from the Founders.
- All the founders’ identification details.
- A Certified Copy of Auditor’s listing for Auditors Association and Registry of Accountant.
- The Application to GAFI.
(The GAFI attorney reviews all the relevant documents and then issues an Article of Association as part of its official document. The last process is the calculation of the fees associated with establishing the company by the GAFI authority.
Procedure 4: Notary Corporation’s Contract
The Public Notary requires to evaluate the submitted statutory documents again, especially the Power of Attorney, before notarizing the Articles of Association. The Company Act Law 159 authorizes the issuance of the Chamber of Commerce by the GAFI employees.
Procedure 5: The Issuance of Notification of Incorporation
Once the Article of Association is presented, its authenticity is verified before delivering a decree approving the company’s establishment. The process takes approximately a week.
Procedure 6: Tax Status Registration
After the applicant has received the incorporation certificate, the next step is tax registration and attains the tax cardat. The registration process will be complete when all the relevant documents such as the Articles of Association, the Power of Attorney, and the original extract from the Commercial Registry.
Procedure 7: Social Security Insurance Registration
As part of the law requirements to register company in Egypt, applicants must register for social insurance with the National Authority of Social Insurance. For the process to be complete, applicants must complete an application for the social insurance procedure subscription.