Protection of foreign investments – the Egyptian Investment Guarantees and Incentives Law provides that overseas investors may apply for an investment licence from the Egyptian General Authority for Investment (GAFI)...
...in certain sectors, including industry and mining, oil services, infrastructure and housing projects. An investment licence confers various guarantees and benefits including protection from nationalisation, the right to own land necessary to exercise or expand their activities and freedom to import and export necessary materials.
Foreign ownership restrictions – generally, there are no foreign investment restrictions applicable to LLCs and JSCs in Egypt, other than in specific business sectors such as education.
Limited Liability Company (“LLC”)
Minimum capital requirements – the minimum capital of a LLC is EGP200 (approximately US$36).
Shareholders – there is a minimum of two shareholders and a maximum of 50 shareholders in a LLC.
Management structure – a LLC must have at least one Egyptian manager. Decisions are made by managers’ resolutions.
Minority shareholders protections – it is possible to include minority shareholder protections in the constitutional documents of a LLC.
Timeframe to establish – two to three weeks from receipt of documentation in ordinary circumstances.
Joint Stock Company (“JSC”)
Minimum capital requirements – the minimum share capital of a JSC is EGP250,000 (approximately US$45,000) although only 10% of this amount must be paid up on incorporation with the balance being payable over the following five years.
Shareholders – there is a minimum number of three shareholders for a JSC, but there is no maximum number.
Management structure – a JSC is managed by a board of directors, comprising a minimum of three persons (who may be of any nationality).
Minority shareholders protections – it is possible to include minority shareholder protections in the constitutional documents of a JSC.
Timeframe to establish – two to three weeks from receipt of documentation in ordinary circumstances.
Branch office
The GAFI performs mandatory security checks on the foreign principals and managers of a branch prior to registration, which can result in the establishment process taking six months from the time documentation is submitted. Consequently, it is usually preferable to establish a presence in Egypt in a different way.