Limited Liability Company (LLC)
شركة ذات مسؤولية محدودة
Constitución de empresa en Egypt
The LLC is best suited for: Small and medium businesses entering the Egyptian market, Foreign startups and tech companies leveraging Egypt's talent pool, Service companies, consultancies, and trading firms, Companies seeking access to Africa's third-largest economy. LLCs pay 22.5% corporate income tax on net profits. Small and medium enterprises may qualify for simplified tax treatment under the SME Tax Law (0.5–1% of turnover for companies with revenue up to EGP 10 million). VAT is 14% on most goods and services. Dividends distributed to non-residents are subject to 10% withholding tax. Interest and royalty payments to non-residents are subject to 20% WHT (reducible under double tax treaties). Egypt has 59 double tax treaties. Free zone entities receive significant tax incentives including exemptions from corporate tax and customs duties.
- Small and medium businesses entering the Egyptian market
- Foreign startups and tech companies leveraging Egypt's talent pool
- Service companies, consultancies, and trading firms
- Companies seeking access to Africa's third-largest economy
Datos clave
Proceso de constitución paso a paso
Reserve a company name with GAFI
Submit a name reservation request through the General Authority for Investment and Free Zones (GAFI). The name must be in Arabic, unique, and not conflict with existing registrations. GAFI's one-stop-shop service handles much of the formation process.
Draft and authenticate the Articles of Association
Prepare the Articles of Association specifying shareholders, capital, management, and activities. The articles must be authenticated at the Egyptian Bar Association (Lawyers Syndicate) and stamped by the relevant authorities.
Deposit minimum share capital
Open a temporary bank account at an Egyptian bank and deposit the minimum share capital. The bank issues a capital deposit letter required for registration. The minimum for an LLC is only EGP 1,000, but practical capitalisation should reflect actual business needs.
Register through GAFI's one-stop shop
Submit the full application to GAFI, including the authenticated articles, capital deposit letter, passport copies, and activity-specific approvals. GAFI coordinates with the Commercial Registry, Tax Authority, and Social Insurance Authority. The Commercial Registration certificate is issued upon approval.
Obtain the tax card and register for VAT
Register with the Egyptian Tax Authority (ETA) to obtain the company's tax card. Register for VAT if annual taxable turnover exceeds EGP 500,000. Register with the Social Insurance Authority for employee contributions.
Documentos requeridos
- Passport copies of all shareholders and directors
- Proof of residential address for each shareholder
- Authenticated Articles of Association (Arabic)
- Capital deposit letter from an Egyptian bank
- Registered office lease agreement (registered with the Real Estate Registry)
- Power of Attorney if applying through a representative (notarised, legalised, and translated into Arabic)
- Non-conviction certificate for directors
- GAFI application forms
Resumen de costos
Tratamiento fiscal
LLCs pay 22.5% corporate income tax on net profits. Small and medium enterprises may qualify for simplified tax treatment under the SME Tax Law (0.5–1% of turnover for companies with revenue up to EGP 10 million). VAT is 14% on most goods and services. Dividends distributed to non-residents are subject to 10% withholding tax. Interest and royalty payments to non-residents are subject to 20% WHT (reducible under double tax treaties). Egypt has 59 double tax treaties. Free zone entities receive significant tax incentives including exemptions from corporate tax and customs duties.
Ventajas y desventajas
- Largest market in the Arab world — 110 million people with a growing middle class
- Very low minimum capital of EGP 1,000 for LLC formation
- 100% foreign ownership permitted in most sectors
- Young, educated, and cost-effective workforce — developer salaries are 20–40% of GCC levels
- GAFI one-stop shop simplifies the incorporation process
- Free trade access to Africa via COMESA and the African Continental Free Trade Area (AfCFTA)
- 22.5% corporate tax rate is high by regional standards
- 14% VAT adds to the overall tax burden
- Bureaucracy and regulatory complexity remain challenging despite reforms
- Currency volatility — the Egyptian pound has depreciated significantly in recent years
- Infrastructure gaps outside Cairo and Alexandria
- Dispute resolution through local courts can be slow and unpredictable
Otras estructuras en Egypt
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ComenzarThis content is educational and does not constitute legal or tax advice. Always consult a qualified professional for your specific situation. Data last verified March 2026.