Which affect the investment environment for investors, startups, and tiny business who want to speculate and begin a corporation in Egypt, instead of this environment will enlarge the investment opportunities and supply the desired security thereto. The Companies Law No. 159 of 1981 is one among these laws that regulate the corporate formation, the ways of investments, forms of companies in Egypt, the necessities, and also the procedures for establishing a corporation in Egypt. TYPES OF COMPANIES IN EGYPT you'll be able to REGISTER The main authority that governs establishing every type of companies in Egypt is that the General Authority for Investment and Free Zones. The Companies’ law No. 159 of 1981, the New Investment Law No. 72 of 2017, and therefore the Capital Market Law with their executive regulations and adaptation are the governing laws that regulate and manage the establish an organization in Egypt from the start till its dissolution. The most widespread forms of companies in Egypt under Law No. 159 of 1981, are as follows: Joint Stock Company (JSC) Limited Liability Company (LLC) Branch of a distant Company One Person Company The main features of every company are shown as follows: Joint Stock Company (JSC) A company (JSC) could be a company whose capital is split into shares of equal values, the liability of the shareholder is confined to the worth of their shares, instead of that he's not accountable for the debts of the corporate except within the limit of these shares. It may be a closed company or a listed company. the corporate shall have a trading name derived from the aim of its establishment. The name of the corporate shall include the name or title of 1 or more of its founders. ESTABLISHMENT: Submit brand Clearance Certificate which checks the name of the corporate taken by another company or not shall. Registration of a company within the Commercial Registry and can be under the supervision and control of GAFI. Derived the corporate name from the needs that may include the name of 1 or more of the shareholders. Paid 10% of the capital before the establishment and provided by bank certificate from a licensed bank by The financial organization of Egypt. PURPOSES: A company activity providing like every other business entity by applicable laws and regulations. MANAGEMENT: A JSC shall have a minimum of three founding shareholders. The management of the corporate shall be proceeding by a board of directors comprising of a minimum of three members elected by the partners for a limited duration. CAPITAL: The required minimum issued capital is 250,000 L.E for an organization within the event if it's not offering the shares to the general public (closed or private joint-stock company), Pay 10% is at the time of firm. Pay a percentage of 25% from the issued capital within three months from the establishment, and pay the remaining amount of the face value of the shares within five years. Pay an amount of LE 500,000 from the minimum capital of a company that provides its shares for public subscription. Holding a company’s establishment for the needs of stock dealings and investment, pay the minimum capital is LE 5 million, of which a minimum of 25% on the establishment, and also the authorized capital must not exceed ten times the issued capital. TAXES: Taxes paid on company profits for JSC. Limited Liability Company (LLC) The indebtedness Company may be a closed company because of the liability of its partners to the worth of their shares within the company. The company shall have a trading name for the aim of its establishment and also the name of the corporate may include the name or title of 1 or more of its founders. ESTABLISHMENT: Registration liability companies within the Commercial Registry and are subject to the supervision and inspection of GAFI. Include registration of the LLC within the Commercial Register. PURPOSES: Prohibit financial obligation companies to hold out some activities in some areas like insurance, banking, savings, investing money for others, and investment management. Apart from the preceding areas of activity, financial obligation companies can do legal endeavor like other business entities, subject only to the final limitations of applicable laws and regulations. MANAGEMENT: Foreign (100%) owns a indebtedness company and there's no express provision indicating a maximum ceiling for ownership of capital by foreigners. One entity doesn't own a indebtedness company, under Egyptian law. Consequently, a minimum of two partners are a requirement. With reference to management, thus the appointment of the managers is by the partners. There could also be one or more managers, and also there must be a minimum of one Egyptian manager. CAPITAL: The minimum share capital required to make an LLC is LE 1,000. Divide the capital into equal shares, either in cash or in a similar way, and also the value of every share must be a minimum of LE 10. TAXES: Taxes paid on company profits for JSC. PROFIT-SHARING In case of the capital of the indebtedness company doesn't reach LE 250,000, no obligation for the corporate to distribute a part of the profits to the staff. If the capital reaches the mentioned capital, distribute 10% of the online profits to employees, as long as such 10% doesn't exceed the annual total value of salaries and wages payable to the workers. Branch of a remote company A branch of a remote company may be only registered in Egypt to hold out construction works or generally work of contractual nature per a contract concluded with any Egyptian entity either the Egyptian Government, Public Sector, or Private Company. Although the branch can engage in commercial, financial, industrial, and contractual activities, limited the activities that the branch will perform to those stated in its consent Egypt, which implies treating the branch as an Egyptian company all told matters except corporate governance. REGISTRATION OF A BRANCH OF an overseas COMPANY: Any foreign company has got to register the branch within the Commercial Registry and General Authority for Investment and Free Zones whatever its legal form, which carries out any commercial, financial, industrial, or contracting activity in Egypt. PURPOSES: Registrate a branch can undertake any variety of legal activity in Egypt within the Commercial Registry on condition that it's a signed contract with an Egyptian entity either the general public sector or private sector to produce the services encompassed by such activity, limit the activities that the branch will do to those stated in its go for Egypt. MANAGEMENT: Managing the branch of an overseas company by a distant manager. and therefore the branch are under the total control of its parent company. Branch offices’ activities are subject to review by General Authority for Investment and Free Zones to confirm compliance with laws and regulations. CAPITAL: There are not any requirements for the minimum capital investment for the branch. However, made and transfer the initial capital investments in foreign currency to Egypt through a registered Egyptian bank. TAXES: The net profit of a branch is subject to corporate tax at the identical rate as Egyptian companies. PROFIT-SHARING: Branches are guaranteed to distribute a minimum of 10 you look after their annual net profits to their employees (not exceeding the full annual wages and salaries paid to workers and employees of the branch). One Person Company Introducing the One Person Company could be a new style of company within the Companies Law No. 159 of 1981 after making its last amendments in 2018; as by this sort of company, the little investor becomes ready to establish an organization in Egypt, on his own, a corporation during a unique sort of companies. One Person Company may be a company that's owned by one person, whether natural or a legal entity, within the needs that it’s established for, and therefore the owner of the corporate shall be liable just for the company’s obligations unless within the allocated shared capital. ADVANTAGES of 1 PERSON COMPANY: The one-person company needs just one partner or founder, therefore the opportunity to the little investors to have an organization without the requirement to get a particular number of partners or shareholders. Since a one-person company is that the owner-partner within which is chargeable for its share only by the number of the company’s capital. There is another advantage for the One Person Company is that the choice is formed within the corporate because the owner of a one-person company exercises all the powers granted to the board of directors and also the powers of the normal and extraordinary general assembly, being the sole partner. ESTABLISHMENT AND WORK OF A ONE-PERSON COMPANY Establish a one-person company by one natural or legal entity only. Thereafter, any further partner within the company shall not be a one-person company. The founder shall establish an organization in Egypt by himself or by his representative by submitting an application to the Authority. Each company shall have its regulation including its name, purposes, the information of its founder, duration, and managing system, the address of its head office, branches, the number of its capital, and therefore the company liquidation. And any data mentioned by the manager Regulations. An approval from the prime minister or the competent minister if the founding father of the corporate could be a law person. Paid the corporate’s capital fully before the establishment of the company. In case of the founder forbidden the capital to a natural or legal entity, it's a requirement to amend the company’s data and therefore the commercial register within a period not exceeding three months from the date of the deal, in accordance with the procedures and rules specified by the Regulations. altogether cases, the act shall not be effective against third parties except the date of registration within the commercial register. THE MAIN REQUIRED DOCUMENTS to determine an organization IN EGYPT A marque clearance certificate from GAFI. A bank certificate by the capital depositing. Power of attorneys and original for establishment. Copies of the IDs for partners and Egyptian managers and passports for foreign managers. An original copy of the auditor account

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