Establishing companies in Egypt has become a much easier process nowadays, especially with the issuance of the new Investment Law No. 72 of 2017, which represents a combination of incentives, customs exemptions, facilitation of procedures and required documents, in addition to many guarantees and other means to protect investors.
A Limited Liability Company (LLC) is considered a hybrid between partnerships and joint-stock companies. It is based on mutual trust between the partners, and each partner is only liable for the company’s debts to the extent of their share in the capital. Before delving into the procedures for establishing an LLC, let us first highlight the most important characteristics of the company and the information required in the incorporation contract.
Key Characteristics of a Limited Liability Company
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The company’s capital is divided into shares, not stocks, and thus cannot be traded on the stock exchange. The law does not stipulate a specific minimum capital amount.
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The number of partners must not be fewer than two and not more than fifty.
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Its incorporation and liquidation procedures are among the simplest compared to other company types.
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Suitable for young entrepreneurs wishing to start a simple and low-cost private project.
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Partners are liable only to the extent of their shares in the capital, and their personal assets are not subject to claims.
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The company is managed by an individual chosen from among the partners, whose name must be registered in the company’s incorporation contract.
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Government employees are not allowed to join the company.
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Partners can transfer their shares through a written contract signed by both the transferring and new partner during the Extraordinary General Assembly.
The procedures for establishing a Limited Liability Company in Egypt can be summarized in the following points:
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Drafting the preliminary contract and the Articles of Association
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Security inquiry form, in case of foreign partners or managers
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Obtaining a certificate confirming no confusion in the trade name
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Opening a bank account for the company
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Filing a company tracking model
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Reviewing documents to ensure completeness
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Paying the required fees
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Following up on the issuance of the incorporation decision and delivering the original documents to the founders’ agent
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Issuance of the commercial registration application
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Issuance of the incorporation decision
