Egypt
Corporate Guide

What are the different types of companies that can be incorporated in Egypt?

Foreign investors are entitled to undertake activities in Egypt through establishing a company, a branch of a foreign entity, or representative offices.

Joint stock companies

Joint stock companies (JSCs) are among the most used corporate vehicles in Egypt as they can generally carry out any activity, and certain activities can only be carried out by a JSC (i.e. capital markets, insurance and banking). JSCs require a minimum of three shareholders, who could be natural and / or juristic persons, and a minimum share capital of EGP 250,000, noting that the minimum share capital of a JSC may vary depending on its activity.

Limited liability companies

A limited liability company (LLC) is also a popular type of corporate vehicle in Egypt, as it requires a minimum of two quota-holders, but it cannot exceed 50, who could be natural and / or juristic persons. Normally, there is no minimum capital requirement for an LLC.

Generally, the liability of shareholders in JSCs and quota-holders in LLCs is limited to their respective share / quota holdings in the company, which is what distinguishes capital companies from “persons’ companies”. 

Sole shareholder company

A sole shareholder company, which is a recently added form of company, has capital that is wholly owned by one person (i.e. natural, or juristic). This type of company must have its headquarters in Egypt or carry out most of its operations therein.

Branches

Branches may only be established to execute contracts concluded by the holding company and an Egyptian entity (whether a private corporation or a governmental body). The branch is not permitted to conduct any business of procurement (directly from the market or from intermediary suppliers), distribution, supply, direct sales in wholesale or retail markets, or export and import for trading purposes. Such activities can only be executed if determined under the scope of said contracts.

Representative offices / scientific offices

Representative offices / scientific offices may be established by foreign companies. The object of such offices is limited to studying and exploring the Egyptian market to conduct market research without performing any kind of commercial or income-generating activities. If such offices exercise any other activity conflicting with their purpose, they will be written off the register.