How to Set Up an Entity in Egypt

Egypt’s strategic geographic position connecting Africa, the Middle East, and Europe, combined with a large domestic market and ongoing investment reforms, makes it an appealing destination for international companies looking to establish a local presence. With recent government efforts to streamline business setup and offer incentives under the Investment Law, the process of entity formation is increasingly accessible for foreign investors seeking regional market access or commercial operations.

Setting up an entity in Egypt involves several clear legal and administrative steps, but it also presents challenges such as navigating Arabic-language documentation, securing the right licenses for regulated industries, and complying with local tax and employment requirements. The benefits include full control over local operations, access to incentives for strategic sectors, and the ability to invoice customers locally.

Disclaimer: This content is for informational purposes only and does not constitute legal, tax, or financial advice. Always consult official sources before acting.

What does “opening an entity” mean in Egypt?

Opening an entity in Egypt means legally establishing a business under Egyptian law through registration with the General Authority for Investment and Free Zones (GAFI), obtaining a commercial register number, and securing relevant tax and labor registrations so the company can operate and hire locally.

Entity overview in Egypt

Here is a summary of the key features of company formation in Egypt.

Step-by-step guide: How to open an entity in Egypt

Step 1: Choose the right structure

Foreign businesses typically choose between:

• Limited Liability Company (LLC): Popular for small to medium operations with liability limited to capital contributions
• Joint Stock Company (JSC): Suited for larger firms seeking investment or potentially listing shares; higher capital and governance requirements
• Branch office: A legal presence of the parent company, not a separate legal person
• Representative office: For market research or promotional activities without commercial operations

Step 2: Verify business name availability

Using GAFI’s online services, check and reserve your trade name to ensure it is unique and complies with naming rules (e.g., no deceptive or restricted words). The name reservation is part of GAFI’s electronic registration portal.

Step 3: Prepare incorporation documents

You will need several key documents, typically drafted in Arabic and notarized:

• Memorandum of Association (MoA) describing the company's purpose, shareholders, and capital
• Articles of Association (AoA) outlining governance and operations
• Founders’ IDs or passports and powers of attorney as required
• Proof of registered office address in Egypt

Step 4: Register with GAFI

Submit your documents and application through the GAFI eServices portal. Upon approval, GAFI issues a commercial register and tax card, which legally establishes the company.

Step 5: Register for tax and social security

After commercial registration, register for a Tax Identification Number (TIN) with the Egyptian Tax Authority. If your business exceeds the VAT threshold (for annual revenue above EGP 500,000), register for VAT at 14%. Employers must also register employees with the Social Insurance Authority for payroll contributions.

Step 6: Open a corporate bank account

Open a bank account in Egypt using your registration certificates, tax card, and shareholder IDs. Banks may request additional KYC documentation and may have variable processing times.

Step 7: Set up payroll and employment compliance

Ensure you comply with Egyptian labor law by preparing employment contracts, withholding payroll taxes, making social insurance contributions, and adhering to workplace regulations.

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Post-registration obligations

After incorporation, companies in Egypt must comply with ongoing regulatory requirements, including:

• Tax and financial reporting: File annual corporate income tax returns and, where applicable, VAT returns according to the schedule set by the Egyptian Tax Authority, and maintain accounting records in line with Egyptian accounting standards
• Corporate registers: Keep up-to-date records of directors, shareholders, and beneficial owners, and report any changes to the Commercial Registry within the legally required timeframe
• Compliance tracking: Monitor all corporate, tax, and statutory filing deadlines to avoid late-payment penalties and administrative sanctions
• License renewals: Renew applicable business licenses and operating permits with the relevant authorities as required
• Recordkeeping: Retain accounting, payroll, HR, and transactional records for the minimum period required under Egyptian law
• Employment law compliance: Register employees with the National Organization for Social Insurance (NOSI), pay mandatory social security contributions split between employer and employee (with rates set annually by law), and maintain compliant employment contracts and benefits records

Taxes and financial considerations

You are responsible for:

• Corporate income tax: Egypt levies a flat 22.5% rate on net profits for most businesses
• VAT: Standard 14% VAT applies to taxable goods and services, with some exemptions and zero-rating (e.g., exports)
• Payroll/social contributions: Employers are responsible for withholding and remitting employee taxes and social insurance contributions per Egyptian law
• Accounting standards: Financial statements must comply with Egyptian requirements, often based on IFRS or local standards

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Expand internationally with Deel

Whether you’re hiring through an EOR or establishing your own local entity, Deel’s all-in-one platform gives you everything you need to expand into the United Kingdom—quickly, compliantly, and with confidence. From market entry to ongoing operations, Deel helps you hire, onboard, and manage teams seamlessly from day one.

With Deel, you can:

• Test new regions using Deel’s local entities through our Employer of Record service—hire employees compliantly, delegate payroll and taxes, and access localized employment contracts.
• Open entities with Deel Entity Setup, where our team manages everything—from incorporation and tax registration to coordination with local experts.
• Centralize your compliance and records with Deel Entity Management, including automated filings, calendar reminders, and visibility across all entities.
• Integrate with Deel Payroll and Deel HR for compliant payments, benefits, and workforce oversight—all in one platform.

For companies transitioning from the EOR model to owned entities, Deel ensures a smooth handover and consistent compliance every step of the way. Enter new markets, onboard talent, and manage your global workforce—all through one unified platform.

FAQs

How long does it take to open an entity in Egypt?
Most company registrations take about 3–6 weeks, depending on structure and approvals. Find out how long setup takes with our Entity Setup Calculator.

What is the minimum capital required?
LLCs often have no fixed statutory minimum, while JSCs generally require EGP 250,000 (~USD 4,000) or more.

Can foreign companies own 100 % of an entity in Egypt?
Yes, foreign investors can typically own 100 % of an Egyptian company, subject to certain industry restrictions.

Do I need a local director or representative?
A resident manager or representative is often required, especially for LLCs and branch offices.

How much does it cost to register an entity?
Costs vary but often range from EGP 5,000 – 15,000+ (~USD 130 – 390+) in fees, excluding professional services. Find out the setup cost with our Entity Setup Calculator.

Can I hire employees before the entity is fully registered?
Typically, no. However, Deel’s Employer of Record (EOR) lets you hire and pay talent immediately while your entity setup is in progress.

Can Deel help me open an entity in Egypt?
Yes. Deel Entity Setup manages the end-to-end process — from registration to payroll compliance—in over 100 countries. Deel’s local experts handle documentation, filings, and legal requirements on your behalf.

Does Deel offer ongoing compliance and payroll support?
Yes. Deel offers both managed services and self-service tools to help you stay compliant.

If you’re using Deel Entity Management, Maintenance, EOR, or Payroll, our team handles payroll, benefits, filings, and compliance obligations on your behalf.

For teams managing their own entities, Deel Compliance Hub makes staying compliant simple by providing real-time regulatory updates, risk alerts, and workforce insights across 150+ countries. Proactively manage compliance with our Compliance Monitor, Workforce Insights, and an AI-powered Worker Classifier, staying ahead of changing employment laws.

Can I switch from Deel EOR to my own entity later?
Yes. Deel supports seamless transitions when you’re ready.