Learn About the Steps to Establish a Sole Proprietorship According to the Investment Law
The Investment Law regulates the procedures for setting up a sole proprietorship, defining it as an enterprise owned and managed by a single individual who receives all profits and bears full responsibility. It is equivalent to a sole trader under Articles 10 and 11 of Commercial Law No. 17 of 1999, and is established through the General Authority for Investment (GAFI) in accordance with the provisions of Investment Law No. 72 of 2017.
GAFI has stated that the time required to establish a sole proprietorship is one working day, and the capital amount is determined at the discretion of the business owner.
Fees Payable by the Applicant or Authorized Representative:
Commercial registration fee
Fee for issuing a business license certificate (Annual subscription of 2‰ of the capital)
Service fee for establishing a sole proprietorship
Fee for an official copy of the commercial registration certificate
Required Documents:
A copy of a power of attorney from the owner, in case the establishment is made by an agent (the power of attorney must clearly state the authorization to establish companies).
Valid and clear personal identification copies for the business owner (original may be requested for verification):
National ID for Egyptians
Passports for foreigners
Valid and clear personal identification copies for the agent (original must be presented):
National ID for Egyptians
Passport for foreigners (must have a valid residence permit)
Investor profile form for a foreign business owner, plus a copy saved on a CD.
Approval from the relevant authority, if the company’s objectives require special authorization under the applicable laws (pre-approval required).
In Case of a Non-Cash (In-kind) Contribution Upon Establishment:
A valuation report must be submitted for the in-kind share by a certified expert from a legally regulated profession, depending on the nature of the contribution.
If the Sole Proprietorship Is Established Under the Free Zone System (According to Investment Law No. 72 of 2017):
The same documents listed above are required in addition to the following:
For public free zones: Pre-approval must be obtained from GAFI, and the approval is issued by the Board of Directors of the targeted free zone where the project is to be established.
