Guide for Doing Business in Egypt 2025

DEFINITIONS

In this guide unless the context otherwise requires the following words, and expression shall have the meanings respectively set out herein:

Words/Expressions	Meaning
Investment Law	means Investment Law issued by Law No. 72 of 2017
Companies Law	means Companies Law issued by Law No. 159 of 1981
Commercial Law	means Commercial Law issued by Law No. 17 of 1999
Capital Market Law	means Capital Market Law issued by Law No. 95 of 1992
Civil Law	means Civil Law issued by Law No. 131 of 1948
Banking Law	means Banking Law issued by Law No. 194 of 2020
Fintech Law	means Fintech Law issued by Law No. 5 of 2022
Commercial Register Law	Means Commercial Register Law issued by Law No. 34 of 1976
Intellectual Property Law	means Intellectual Property Law issued by Law No. 82 of 2022
Bankruptcy Law	means Bankruptcy Law issued by Law No. 11 of 20218
Partnership with the Private Sector in Infrastructure Services and Public Utilities Law	means the Private Sector in Infrastructure Services and Public Utilities Law issued by Law No. 67 of 2010
Commercial Agency Law	means Commercial Agency Law issued by Law No. 120 of 1982
Labor Law	means Labor Law issued by Law No. 12 of 2003
Data Protection Law	means Data Protection Law issued by Law No. 151 of 2020
Anti-Money Laundering Law	means Anti-Money Laundering Law issued by Law No. 80 of 2002
MOI	means Ministry of Investment and Foreign Trade
MOIC	means Ministry of International Cooperation and Planning
GAFI	means the General Authority for Investment and Free Zones
FRA	means the Financial Regulatory Authority
ECA	means the Egyptian Competition Authority
ETA	means Egyptian Tax Authority
CR	means Commercial register
LLC	means Limited Liability Companies
JSC	means Joint Stock Companies
CBE	means Central Bank of Egypt
EGP	means the currency in Egypt the Egyptian Pounds
EMLCU	Means the Egyptian Money Laundering Combating Crimes
SCEZ	means Suez Canal Economic Zone

ABOUT EGYPT’S INVESTMENT CLIMATE

About this Guide

The Doing Business in Egypt Guide provides an overview for investors interested in exploring opportunities and doing business in Egypt. It highlights the country’s economic strengths, investment potential, and the legal framework governing business operations, offering insights into both practical and regulatory considerations.

Investing in Egypt

Despite global economic challenges, the Egyptian economy has shown resilience and remains well-positioned to compete in global markets. It is a fact that Egypt has been consistently ranked among the top investment destinations in Africa at both the regional and global levels. The country stands out as one of the region’s most attractive hubs for business establishment and outsourcing, driven by its strategic geographic location, abundant natural resources, sizable talent pool, and sustained economic and demographic growth.

While traditional sectors such as agriculture, energy, construction and contracting services, real estate, and tourism have long been the main drivers of Egypt’s economic growth, the government is increasingly prioritizing industrial development, with a particular focus on local production and manufacturing. However, overcoming industrial underdevelopment remains a significant challenge, especially given the country’s continued dependence on imports.

Our Guide offers valuable insight into the legal and practical considerations for investing and operating in the Egyptian market, along with an overview of the available options for companies and individuals seeking to establish a presence int Egypt.

“The Egyptian economy enjoys many competitive advantages, on top of which are the investment and trade agreements that Egypt has concluded with its African and Arab neighbors during the past years. In addition, the Economic Reform Program, which the Egyptian government has successfully implemented, along with the significant investments in infrastructure, has contributed to improving the business environment in Egypt. Moreover, the new investment facilitations and incentives approved by the Prime Minister aim to attract more local and foreign investments.”

Current CEO of the General Authority for Investments and Free Zones

Reform in Egypt Over the Past Decade

The Egyptian government has undertaken major infrastructure and legislative reforms, including measures aimed at strengthening ties with African nations and Eastern European countries. These efforts are expected to lead to further international treaties and tax incentives, which would, in turn, offer additional benefits to investors in Egypt. Such reforms align with the government’s broader strategy to attract more foreign direct investment (FDI) and promote opportunities for international cooperation and investment partnerships.

Egypt, strategically positioned at the crossroads of Africa, Asia and Europe, plays a pivotal role in global trade. Its unique geographic location, anchored by the Suez Canal — one of the world’s most vital trade routes — has a significant impact on Egypt’s import and export dynamics. For centuries, trade has served as a cornerstone of the Egyptian economy, continually adapting to shifting global dynamics and national development priorities.

Egypt’s Top Trade Partners List includes:

Top Importation Partners:
1. China
2. Saudi Arabia
3. United States of America
4. Russia
5. Germany
6. Brazil
7. Italy
8. Turkey
9. India
10. United Kingdom
Top Exportation Partners:
11. Italy
12. Saudi Arabia
13. Turkey
14. United States of America
15. United Kingdom

Foreign Direct Investment (“FDI”) plays a pivotal role in Egypt’s economic development, serving as a crucial source of foreign currency, technology transfer, and job creation. Over the last few years, FDI has increased in Egypt especially in the Ras Al Hekma Mega project where the UAE accounted for the lion’s share at USD 38.9 billion, largely attributed to the project. Saudi Arabia followed with USD 775.5 million, Qatar with USD 618.5 million, and United Kingdom with USD 566.200 million.

[1] According to the data from the Central Agency for Public Mobilization and Statistics (“CAPMAS”).
Reference: Arab Investments in Egypt Surge Fivefold to USD 41.5 Billion in 2024

[2] According to the CEIC data.

Top sources of FDI in Egypt:

Currency and Regulatory oversight in Egypt:

The official currency in Egypt is Egyptian Pound (EGP), also referred to as Livre Égyptienne (LE). The Central Bank of Egypt (CBE) is the primary authority responsible for overseeing monetary policy and regulating financial operations in Egypt. It sets the rules governing activities such as receiving inbound transfers from abroad in foreign currencies, as well as transactions between mobile wallets. Currently, such transfers are restricted to individuals and may be received in foreign currencies, then credited to a mobile wallet in EGP.

The CBE’s most recent edition of the Mobile Payment Regulations was issued in April 2021, which aims to reduce cash dependency in Egypt and promote the adoption and expansion of mobile payment services across the economy. This reinforces the vision of the National Payments Council—chaired by Egypt’s President—to advance digital transformation and financial inclusion nationwide. These legal instruments have accelerated Egypt’s shift from a cash-based to a cashless economy, thereby streamlining the investment process for foreign investors. Services that previously required in-person transactions, such as utility bill payments, are now increasingly accessible online from any location.

The CBE operates in coordination with authorized banks and regulatory bodies, like the Egyptian Money Laundering Combating Unit (EMLCU), to monitor and mitigate financial crime risks, such as money laundering and terrorist financing. This guarantees the efficient enforcement of relevant legislations, mainly Law No. 80 of 2002 Promulgating Anti-Money Laundering and its Executive Regulations issued by virtue of Prime Ministerial Decree No. 951.

The CBE has also played a central role in containing inflation since the flotation of the Egyptian pound in 2016, adjusting interest rates multiple times in response to changing economic conditions. However, the long-term impact of these efforts remains to be seen over the next five years, particularly in light of the significant currency devaluations and elevated inflation levels.

Languages Spoken in Egypt:

The predominant and official language spoken in Egypt is Arabic. The main foreign language spoken in Egypt, especially in the business sector, is English Other common foreign languages that feature in Egypt are French and German.

KEY LEGISLATIONS REGULATING INVESTMENT IN EGYPT

Investment Law:

The Investment Law in Egypt promotes entrepreneurship and encourages investment across all sectors, regardless of the nature or scale of the venture. It supports the growth of small and medium-sized enterprises (SMEs) as well as large-scale projects, fostering a more dynamic and inclusive investment environment. More importantly, it guarantees equitable treatment of investors regardless of their nationality by ensuring fair competition and the strict application of governance standards in line with GAFI’s good governance principles.

The Investment Law developed mechanisms to safeguard foreign investment projects and property against nationalization through several official bodies, including the Ministerial Committee for Investment Disputes Resolution, the Ministerial Committee for Investment Contract Disputes Settlement, the Grievance Committee, and the Supreme Council of Investment—tasked with formulating investment policies and strategies in alignment with Egypt’s socio-economic objectives.

The Investment Law also streamlined and enhanced procedural requirements by offering multiple avenues for obtaining the necessary registrations and licenses, while mitigating the risks associated with investment projects.

The Investment Law also streamlined and enhanced procedural requirements by simplifying the processes for establishing companies and securing approvals. It provides investors with multiple avenues for obtaining the necessary registrations and licenses, including through GAFI’s one-stop shop and digital platforms, thereby reducing bureaucracy and shortening processing times. In addition, the Law introduces clearer legal safeguards and dispute-resolution mechanisms to mitigate risks associated with investment projects, offering greater certainty and protection for investors.

In addition to the procedural reforms and safeguards introduced by the Investment Law, it also establishes a robust framework of financial and tax incentives intended to encourage private sector participation, promote industrial development, and create a more investor-friendly environment. These incentives aim to reduce operational costs, encourage industrial and technological growth, and enhance Egypt’s overall competitiveness as an investment destination. They are categorized into general incentives, available to all investors, and special incentives, targeted at specific sectors and strategic projects.

General Incentives:

Exemption from stamp duty and documentation fees: Contracts for company establishment, credit facilities, and mortgages are exempt from these fees for five years.
Unified customs tax rate:a 2% customs tax rate applies to machinery, equipment, and devices imported for project establishment.
Temporary import of goods: Investment projects can import goods without customs duties for temporary use in manufacturing.

Special Incentives:

Investment incentive: A deduction from net profits subject to tax, ranging from 30% to 50% investment costs, depending on the project’s location and type.
Cash investment incentive: A cash incentive of 35% to 55% of the tax paid, applicable to certain industrial activities.

Other Guarantees:

Protection of investments: The law guarantees protection against nationalization and expropriation, with fair compensation paid in advance.
Freedom to transfer funds: Investors can transfer funds abroad without restrictions.
Simplified procedures: The law simplifies registration and licensing procedures.

Dispute Resolution:

Ministerial Committee for Resolving Investment Disputes: A committee established to resolve disputes between investors and the state.
Arbitration: Disputes can be settled through arbitration, in accordance with the Arbitration Law.

Golden License:

The Golden License offers a comprehensive and unified approval on the set up, operation and management of a project, including building licenses of such project and the allocation of the real estate property required for the business. It may be granted to companies upon a decree of the Prime Minister.

This approval may include the application of one or more of the incentives mentioned in the present law to the project.

This approval shall be valid on its own without the need to take any other action.

Golden License may be granted to the following Companies:

Companies which are incorporated in setting up strategic or national projects that contribute to the achievement of sustainable development in accordance with the Government’s economic development plan.
Companies which are incorporated to set up a partnership between the private sector and the Government, in the activities of (public utilities and infrastructure – new and renewable energy – roads and transportation – ports – telecommunications and information technology).

Companies Law:

The Companies Law governs the regulatory procedures related to the lifecycle of a company, from incorporation to liquidation. The Companies Law offers a diverse range of the types of companies which can be established in Egypt and eases the processes for establishment to bring it in line with international standards; and options for investors seeking to conduct business in Egypt.

The types of matters covered by the Companies Law, include the structure of the company in terms of management, the various liabilities of different positions, voting on decisions at company meetings, the capital of the company and the distribution of profits and losses. The Companies Law stipulates the rights of shareholders, ensuring transparency and the protection of investors.

Commercial Law:

The Commercial Law includes a set of legal rules that apply to the category of business and to merchants, whether those merchants are natural or legal persons. The Commercial Law is constantly being amended and developed, with the objectives of facilitating business transactions. It also provides the legal foundation for conducting business, covering a broad spectrum from contract law to the nuances of commercial transactions. It distinguishes between commercial and civil acts, setting forth specific obligations for those engaged in commerce. The law regulates aspects like the formation of commercial companies, commercial papers, and the management of commercial establishments.

When it comes to loans, the Commercial Law recognizes various forms, including promissory notes, bills of exchange, and checks. These instruments facilitate commercial credit, with detailed legal provisions on their issuance, endorsement, acceptance, and maturity. The law stipulates that such financial instruments must be written, signed, and contain specific details to be legally binding. Interest on loans can be agreed upon, but usury rates are controlled, protecting borrowers from exploitative practices.

Pledges, another critical aspect of commercial law, involve the creation of security interests over movable property to secure a debt or obligation. Under Egyptian law, pledges must be formalized in writing, and the pledged property typically remains with the debtor unless otherwise agreed. The law distinguishes between different types of pledges, like ordinary pledges, pledges by dispossession, and pledges on commercial establishments, each with its own set of rules concerning registration, priority, and enforcement. In case of default, the creditor’s right to sell the pledged asset is regulated, ensuring a fair process for both parties.

The Commercial Law also touches upon credit transactions, insolvency, and bankruptcy, providing mechanisms for managing financial distress. It includes provisions for the protection of creditors’ rights, the orderly liquidation of assets in bankruptcy, and the potential reorganization or rehabilitation of a business.

This framework not only supports the economic activities by providing legal certainty but also aims to balance the interests of different market participants, from individual traders to large corporations, ensuring a transparent and regulated commercial environment in Egypt

Capital Markets Law:

Egypt’s Capital Markets Law, Law No. 95 of 1992, serves as the cornerstone for the regulation and supervision of the country’s capital markets. The Capital Market Law establishes a comprehensive legal framework governing securities trading, public offerings, stock exchanges operations, and investor protection. It aims to foster a transparent, efficient, and competitive capital market environment. The Capital Market Law provides investors with new financial instruments to enter the Egyptian Stock Exchange, such as bonds, which attract investment. The law controls the Egyptian market, aiming to achieve transparency in the circulation of commodities, such as agricultural products, according to the supply and demand of the market. The latest edition of the Capital Markets Law provides greater protection for foreign investors. In addition, the Capital Market Law addresses issues which commonly arise from trading companies’ securities and stipulates related penalties for such violations.

The law details the requirements for issuing securities, including stocks and bonds, mandating full disclosure to protect investors by ensuring they have access to all material information needed to make informed investment decisions. Companies looking to raise capital through public offerings must adhere to strict regulations regarding prospectuses, financial statements, and ongoing disclosures. The Egyptian Exchange (EGX) operates under the Capital Market Law, which outlines listing rules, trading mechanisms, and the roles of market intermediaries like brokers and underwriters.

Investor protection is a key aspect of the Capital Markets Law. It includes provisions against market manipulation, insider trading, and fraudulent practices. The Financial Regulatory Authority (FRA) plays a pivotal role in enforcing these protections, overseeing compliance, and imposing penalties for violations. The law also sets standards for corporate governance, ensuring that listed companies manage their affairs transparently and in the interest of shareholders.

The Capital Markets Law has been subject to various amendments to adapt to changing market conditions and international standards, particularly focusing on enhancing market integrity, expanding investment products, and improving investor confidence. These amendments have included provisions for derivatives, investment funds, and more robust regulatory mechanisms to prevent financial crimes while encouraging market growth and international investment.

Civil Code Law:

The Civil Code addresses a wide range of transactions between individuals. It thus complements other laws which regulate certain types of transactions, such as Commercial Law, Companies Law, and the Penal Code. Civil Law has a distinct court system which handles the transactions of governmental authorities. Although disputes are usually settled through arbitration, in accordance with the Arbitration in Civil and Commercial Matters Law No. 27 of 1994, the parties may agree to reach a settlement through dispute resolution/litigation instead. The Civil Code also explains and defines the different types of contracts that occur as a result of our daily interactions. Normally, contracts evolve from an agreement between parties, whether a simple contract such as an agreement between a passenger and a driver on a public transportation, or a more complex contract that requires writing and documentation to guarantee the rights of the relevant parties, moreover, resolve probable conflicts or disputes that may arise in the future between contracting parties. Adding to this, contracts are divided into contracts binding on both sides and contracts binding on one side. The Civil Code can be said to be the source of the Contracts Law.

Banking Law:

The Banking Law is considered a key instrument in Egypt’s ongoing economic development and reform initiatives. The law was drafted based on best international banking standards and practices, drawing upon advice from international consultancy firms, the Basel Framework (the set of standards set by the Basel Committee on Banking Supervision), recommendations from the Organization for Economic Co-operation and Development, a comparative study of the banking laws of other nations and recommendations from banks registered with the CBE in Egypt. The revised law brought Egypt in line with the global banking sphere as well as supporting monetary stability, protecting investors in times of financial crisis. The Banking Law aimed at addressing global developments in the banking sector, including e-payments, FinTech businesses and cryptocurrencies.

FinTech Law:

The Fintech Law was steered by the Egyptian government’s vision to modernize Egypt and introduce technological advancements to the non-banking financial sector and bring Egypt in line with other countries that have implemented regulations for such services and accommodate the global shift towards a digitalizing world and encourage innovation. One aim of the law is financial inclusion by broadening the user base of such platforms. The new law sets standards for governance and transparency of these services, whilst protecting consumers’ rights. The new law introduces concepts, such as the ‘FinTech Sandbox’, which provides a platform for investors with innovative ideas in the non-banking FinTech.

Commercial Register:

Egypt’s Commercial Register Law, primarily Law No. 34 of 1976, governs the registration of businesses within the country. The Commercial Register Law mandates that all commercial entities, including limited liability companies, joint stocks, branches of foreign companies, and representative offices, must be registered in a Commercial Register and renewed every five years. The registration process involves submitting various documents like the company’s Articles of Association and proof of capital deposit.

The law stipulates that all businesses must have a unique identification number issued upon registration, which is crucial for legal operations, taxation, and social insurance purposes. There are specific requirements for company names to avoid confusion, requiring a certificate of non-confusion. Registration also involves setting up a corporate bank account, obtaining tax registration, and industry-specific licenses when required.

Amendments to the law and related regulations have been aimed at simplifying the process, with digital systems now in place to check and reserve company names. The Commercial Register maintains records that are accessible to the public, providing transparency in business activities. Companies must update their registry details for changes in management, capital, or business activities.

Foreign investors have become eligible for registration under recent amendments, even if they hold more than 51% of the company’s capital, which was previously restricted. Such restrictions have been loosened and occurred due to recent legal reforms aimed at encouraging foreign investment. This registration is not only mandatory but also periodic as stated above.

The Commercial Register Law forms the backbone for ensuring that all commercial activities in Egypt are conducted legally, transparently, and can be easily monitored by the government for regulatory compliance.

Intellectual Property Law:

The Intellectual Property Law complies with the international standards of the World Intellectual Property Organization (WIPO). The protection of intellectual property is important to investors during the due diligence process and thus plays an important role in investment decisions. This law aims to safeguard the rights of creators, inventors, and owners of intellectual property, promoting innovation and creativity. Key provisions of the law include the protection of patents for inventions, registration requirements for trademarks and industrial designs, and copyright protection for literary and artistic works. The law also outlines penalties for infringement and provides mechanisms for enforcement, ensuring that intellectual property rights are protected and respected in Egypt. This Law supports economic development and encourages investment in research, development, and creative industries.

Bankruptcy Law:

The Bankruptcy Law aims to support the continuity of business rather than declaring bankruptcy and facilitates smooth exit from the Egyptian market, it also provides an opportunity for the startups to invest. The Bankruptcy Law brings faith in the investment climate in Egypt through reorganizing the company’s administrative and financial system with paying of its debts and rather than declaring bankruptcy or opting for liquidation, the creditors may apply for re-structuring to save their business.

The Bankruptcy Law modified ways to overcome financial and administrative crises; it creates a win-win situation for all the related parties through a new restructuring business plan. This plan aims to organize the company’s financial and administrative system for the company to pay off its debts; rather than declaring bankruptcy or opting for liquidation; its helps business owners and merchants in restructuring the company. The restructuring plan shall be executed by a restructuring committee managed by (bankruptcy administration experts) comprised of specialists in restructuring and asset management registered together with experts from Ministries of Finance, Investment Trade, Industry, Manpower, the CBE, GAFI, the Financial Regulatory Authority, Egyptian Exchange, the Chamber of Commerce, Federation of Egyptian Industries, and others. The committee has authority to reevaluate the company’s assets, restructure its debts, increase its capital and cash flow and decrease its expenditure.

Partnership with the Private Sector in Infrastructure, Services, and Public Utilities Law:

The Partnership with the Private Sector in Infrastructure, Services and Public Utilities Law stipulated the formation of a joint committee of specialists from the Ministries of Finance and Planning and Economic Development as well as the Central Unit for Participation. In addition, it stipulated the previous regulations for the selection of projects that can be implemented in partnership with the private sector. This legal framework enhances the standards of governance and gives investors and investment guide of projects that can be contracted in partnership with the Egyptian government. Furthermore, for regulating contracting projects with the private sector, the PPP Law stipulates the principles governing the economic and financial balance of its provisions and the mutual gains for its parties, transparency of contracting methods, and equal opportunities.

Commercial Agency Law:

The Commercial Agency Law is the main source of protection for commercial agents and principals in Egypt, applying to activities such as the sale or purchase of goods and services. The Commercial Agency Law defines ‘commercial agent’ as any person or entity which, not being bound by a contract of employment or for services, ordinarily carries out the offering of bids or purchasing for merchants or distributors, in his own name or on behalf of others. The law does not exclude agents whose agency activities are secondary, meaning their activities are not the primary purpose of the agency agreement with their principal.

Labor Law:

The Labor Law plays a vital role in regulating the relationship between employers and employees, aiming to balance their interests and protect workers’ rights. Its primary objectives including but not limited to (a) providing a fair and safe work environment, (b) regulating working hours, wages, and benefits, (c) protecting employees from discrimination, and harassment, (d) ensuring job security and stability, (e) promoting social justice and equality, (f) encouraging productive employment relationships, (h) resolving labor disputes and grievances, by establishing clear rules and guidelines, this Law helps maintain a harmonious and productive work environment, ultimately contributing to the overall economic and social development of a country. Also, this Law governs the ratio between Egyptian to foreign employees and requires foreign investors to provide Egyptian employees with training. On the other hand, the law requires Egyptian employees to provide foreign investors with residential visas in Egypt, which remain valid throughout the term of the investment.

Data Protection Law:

The Egyptian Data Protection Law was introduced to safeguard personal data rights. It establishes a comprehensive framework for processing, protecting and managing personal data within the country. Personal data broadly covers any information that can identify an individual, including names, voices, medical records and financial details, and it also classifies certain information, such as health records and religious beliefs, as sensitive data. The Law applies to electronic data processing both within Egypt and abroad when the data concerns Egyptians or foreigners residing in Egypt. Data subjects are granted several rights, including access, correction, and deletion of their personal data, with explicit consent required for its processing.

The Personal Data Protection Center was established under the Law, under the supervision of the Ministry of Communications and Information Technology. Its functions include setting policies, issuing licenses, monitoring compliance, and addressing data breaches. In addition, the Law defines the role of Data Protection Officers (DPOs) and outlines their obligations to ensure compliance. It also specifies the responsibilities of data controllers and processors.

The Law imposes restrictions on transferring personal data outside Egypt, allowing it only when the recipient country has adequate data protection standards or when explicit consent has been obtained. In the event of a data breach, the incident must be reported to the regulatory authority and to the affected individuals within three days.

Penalties for non-compliance can be severe, including fines of up to EGP 5 million or imprisonment. Exceptions apply in cases where data is used for personal purposes or matters of public interest. While the Law draws on elements of the EU’s General Data Protection Regulation (GDPR), it is specifically tailored to Egypt’s legal framework. Businesses are granted a grace period to comply with its provisions, pending the issuance of detailed executive regulations.

KEY AUTHORITIES AND REGULATORS SURROUNDING INVESTMENT IN EGYPT

The Central Bank of Egypt (CBE):

The Central Bank of Egypt (CBE) plays a crucial role in maintaining financial stability and managing the Egyptian economy. Its primary objectives include ensuring price stability, supervising the banking system, and managing the country’s financial resources. The CBE also develops and implements monetary policy, manages foreign exchange rates, and oversees the national payment system.

Ministry of Investment and Foreign Trade (MOI):

The Ministry of Investment and Foreign Trade in the Arab Republic of Egypt focuses on attracting foreign direct investments (FDIs), promoting the private sector, and enhancing the competitiveness of the Egyptian economy through trade policies. The ministry aims to increase Egyptian exports, reduce the trade deficit, and encourage national investments in high-value sectors. This includes facilitating investment, simplifying procedures, and improving the investment climate

Ministry of International Cooperation and Planning (MOIC):

The Ministry of International Cooperation aims to tackle the issues that we face, both national and globally, to achieve the United Nation’s 17 Sustainable Development Goals (SDGs). The efforts of the MIC ensure that Egypt’s vision for the development and growth of the local economy are supported by sustainable investment projects.

General Authority for Investment and Free Zones (GAFI):

GAFI is your gateway to the investment market in Egypt. GAFI has a constant committee which continuously works on improving Egypt’s ranking in Doing Business reports and works on encountering all challenges to continuously improve and amend laws to best meet international practices.

Financial Regulatory Authority (FRA):

The FRA is responsible for supervising and regulating non-banking financial markets and instruments, including Capital Market, Futures Exchanges, Insurance Activities, Mortgage Finance, Financial Leasing, Factoring, and Securitization. FRA plays a pivotal role in ensuring stability and soundness of these markets and boosting their competitiveness to attract further domestic and foreign investments. FRA also works on reducing risks resulting from the lack of coordination, in addition to addressing problems emanating from the presence of different regulatory methods. The roles and objectives of the FRA include protecting the rights of investors and participants rights and issuing various means to ensure the efficiency and transparency of the Egyptian market.

Egyptian Competition Authority (ECA):

The Egyptian Competition Authority (ECA) aims to establish, implement and develop regulations that promote free competition, while raising awareness to enhance market performance and achieve greater economic efficiency, benefiting the national economy and consumers alike. Its mandate includes monitoring and combating monopolistic practices to ensure fair competition. The ECA also seeks to foster a healthy economic environment based on free-market principles by enforcing the provisions of the Law and promoting a culture of competition across Egyptian society.

Egyptian Tax Authority (ETA):

The ETA is responsible to develop the tax work system by submitting tax returns electronically and using cloud storage systems to reduce the burden on the taxpayer by facilitating the process of filling out and submitting the tax return, to provide an effective service through the ability of the taxpayer to access his/her electronic tax system/record through any computer within 24 hours/365 days without the need to install any auxiliary tools or programs, to Allocate a storage space for each taxpayer that enables him/her to store deduction and collection transactions under the tax account and access them at any time and from anywhere (Cloud Storage). Facilitating the purchase and sales invoices to apply the added value, and to ease the management of the electronic tax record through applications available on several systems, including mobile phones.

In addition, the ETA facilitates the issuance and management of purchase and sales invoices for value-added tax purposes and simplifies the handling of electronic tax records through applications compatible with multiple platforms, including mobile phones.

The Egyptian Customs Authority:

The Customs Authority, part of the Ministry of Finance, plays a crucial role in managing the flow of goods, both imported and exported. Its primary functions include collecting customs duties and taxes, controlling the entry and exit of goods, and ensuring compliance with relevant laws and regulations.

The Egyptian Commercial Register (CR):

The Commercial Register, which is managed and overseen by GAFI, is essential for registering business entities such as limited liability companies, joint stock companies, foreign branches, and representative offices. It ensures these businesses are legally recognized and provides a public database with key company information, promoting transparency. The CR issues certificates confirming a company’s legal status, required for activities like opening bank accounts and entering contracts. Companies must update their details if there are any material changes, in addition to the CR ensuring compliance with corporate laws, imposing penalties for non-compliance.

It furthermore facilitates business transactions by providing a centralized system for verifying company information, while supporting both local and foreign investors through clear guidelines on company incorporation details. To complete the registration process, applicants must submit documents such as the Articles of Association, a name clearance certificate for the company name, and proof of capital, all of which are processed through GAFI or its designated offices.

ENTRANCE FOR INVESTORS INTO THE EGYPTIAN MARKET

Types of Companies in Egypt

Foreign investors and companies wishing to conduct business in Egypt may do so by establishing permanent legal presence in Egypt. The business structures according to the Egyptian laws are either companies or partnerships. The types of partnerships offered under the Companies Law include:

Limited Partnerships;
Partnerships Limited by Shares; and
General Partnerships.

The Companies Law also offers the following types of companies to foreign investors:

Limited Liability Companies (LLCs);
Joint Stock Companies (JSCs); and
Sole Person Companies.

In the event that a foreign investor does not wish to establish a permanent entity in Egypt, the following options are available:

Representative Offices; and
Branch Offices.

Limited Liability Companies:

This type of company is usually formed for small projects that do not require major financing such as companies involved in internal trade and services activities. Shareholders may be natural persons or juristic entities. According to the Law, no minimum issued, or authorized capital is required for establishing a limited liability company. LLCs may be managed by one or more managers, and there is no restriction in relation to the manger’s nationality. According to the Law, no minimum issued or authorized capital is required for establishing a limited liability company.

Joint Stock Companies:

JSCs are among the most common legal structures in Egypt and are usually established where there is a manufacturing project in Egypt that requires major investments. The main reason for this is that JSCs have a more organized management structure and more stringent corporate governance requirements. In addition, the liability of a shareholder is limited to the value of the shares in the company.

JSC may have an authorized capital and must have an issued capital (actual and paid in). The issued capital may not be less than EGP 250,000 for closed companies. At least 10% of the share capital must be paid upon incorporation and subsequently increased to 25% within three months following the incorporation. Full payment of the issued share capital shall be made within a period of five years after the incorporation date.

The authorized share capital may not exceed ten times the issued share capital. Payment of the initial issued capital must be established by a bank certificate issued by a bank registered in Egypt and authorized to receive subscriptions. An increase of the issued share capital within the cap of the authorized capital may take place by a board resolution. However, any increase in the authorized share capital would require an extraordinary general meeting resolution.

Sole Person Companies:

The Companies Law allows one person, whether natural or a juristic, to incorporate a company. According to the Companies Law, it takes the same form and structure of an LLC. It is worth mentioning that the Sole Partner may be a natural or a legal person.

Such a company’s capital shall not be less than EGP 1,000 and shall be fully paid in advance. In addition, this type of company is prevented from certain activities, such as insurance, banking, receiving deposits and any other financial activities.

The sole shareholder can be a foreign company, provided that this foreign company shall not be a sole member company itself.

Representative Offices:

Foreign companies may establish representative or liaison offices, scientific or technical offices and other offices for the purpose of carrying out market surveys or studying the feasibility of production without entering into any commercial operations or commercial agency activities. The managers of a representative office are not required to be Egyptian nationals.

Branch Offices:

Foreign companies may register a branch provided that it has a contract with an Egyptian party (ether private or public) to perform work in Egypt. In contrast to representative offices, branch offices may engage in commercial, financial, industrial and contractual activities within the scope of the contract it has entered into. The managers of a branch office are not required to be Egyptian nationals.

FORMS OF DOING BUSINESS IN EGYPT

Egypt has witnessed significant growth in industrial projects over the recent years, driven by ongoing economic reforms and an improving investment climate. The key sectors attracting investment and business opportunities currently include:

INVESTMENT ‘GOLDEN LICENSE’

The Investment Law’s Golden License offers a streamlined mechanism for establishing strategic or national projects that contribute to sustainable development, foster PPPs, or operate in priority sectors. These sectors include public utilities and infrastructure, renewable energy, roads and transportation, ports, and information and communication technology.

Once the Golden License is granted, no additional approvals are required, as it provides comprehensive authorization for the establishment, operation and management of the project. This includes the issuance of building permits, and the allocation or assignment of property, rendering it one of the most efficient investment options in Egypt.

Application Submission to GAFI

GAFI assesses the application and verifies that all rules and regulations have been met for obtaining the Golden License. After that, GAFI and the relevant ministry present the investor’s application to the Council of Ministers to obtain a single approval. The latter issues the approval by virtue of a decree, which cannot be contested by any entity. The conditions for obtaining a Golden License are as follows:

An existing Joint Stock Company must be incorporated in Egypt, with an issued capital of at least 50% of the investment cost of the project;
A master plan for the project (prepared by a licensed expert) must be submitted;
A project execution timetable must be prepared;
Infrastructure facilities for the project must be provided (i.e. roads, water, sewage, electricity, communications, etc.); and
The company’s internal regulations must comply with the relevant Egyptian laws and regulations.

Guarantees and Incentives:

The Investment Law provides a comprehensive framework of guarantees and incentives designed to protect and encourage both foreign and local investors. It establishes the principles of fair and equitable treatment for all investments and ensures equal treatment for foreign and national investors. The incentives are classified into general incentives, special incentives, and additional incentives, each aimed at promoting Egypt as a competitive investment destination.

The general incentives include significant exemption from stamp tax as well as notarization and publication fees for the period of five years from the date of registration in the Commercial Register. As for special incentives, they offer substantial tax-related advantages, including a 50% deduction from the investment costs for projects located in Sector (A) and a 30% deduction for projects in Sector (B) explained below.

Sector (A) covers priority investment zones, including the Suez Canal Economic Zone, the Al-Muthalath Al-Dhahaby (Golden Triangle) Economic Zone, and other high-priority development areas characterized by low domestic production, limited employment opportunities, and other critical social indicators.
Sector (B) covers all other areas of Egypt, with a focus on locations where significant development and investment opportunities are available. These deductions are granted for up to seven years from the date of the project’s commencement.

As part of the additional incentives, the Investment Law allows companies to benefit from partial coverage of technical training costs provided to their employees, further supporting workforce development and enhancing operational efficiency.

Suez Canal Economic Zone (SCEZ):

The Suez Canal Economic Zone (SCEZ) is one of Egypt’s most significant investment zones, offering a range of tax and investment incentives to attract both local and foreign investors. Its strategic location, connecting the Mediterranean Sea with the Red Sea, makes it a critical artery of global trade between the East and the West, providing easy access to regional and international markets.

The zone is governed by the General Authority for the Suez Canal Economic Zone, which continuously introduces additional incentives and focuses on delivering world-class services to investors. Its vision is to position the SCEZ as a global hub for maritime transport, logistics, and trade-related industries, aligning with Egypt’s broader economic growth strategy.

In addition to offering competitive investment advantages, the SCEZ supports both new and existing businesses, helping investors expand and thrive. It also plays a vital role in job creation and driving economic development, strengthening Egypt’s position as a key player in regional and international trade.

The SCEZ targets a wide range of key industries which are accommodated in the following zones
EXITING THE EGYPTIAN MARKET – LIQUIDATION:

The Companies Law and the Investment Law set out the conditions governing company liquidation as a structured mechanism that enables investors to exit the Egyptian market in compliance with legal and regulatory requirements.

The Companies Law regulates all aspects of the liquidation process, including the grounds for liquidation, the company status during liquidation, and the appointment, responsibilities and potential dismissal of the liquidator. During the liquidation period, the company’s powers are limited to matters that fall outside the liquidator’s authority. The liquidation must be carried out in accordance with the provisions of the relevant laws, unless the company’s Articles of Association provide for alternative terms.

Grounds for Company Liquidation:

A company may be liquidated either by a shareholders’ decision or by a court ruling under the following circumstances:

If the specified company term has expired or if the project for which it was established was completed, and the partners continue carrying out the same activities, the contract is automatically extended for one year under the same terms.
A creditor of any partner may object to such extension, and their objection results in suspension of the extension’s effect until the matter is resolved.
If the company loses half of its capital, the directors must submit a dissolution request to the General Assembly. The dissolution decision requires the approval of the majority of shareholders, and it may involve modifying the company’s Articles of Association.
If the company loses three-quarters of its capital, partners holding at least one-quarter of the capital may request dissolution.
If losses reduce the company’s capital below the minimum threshold prescribed by the Executive Regulations, any interested party may petition for the company’s dissolution.

In cases where the company is liquidated due to any of the above circumstances — such as loss of capital or a court-ordered dissolution — this constitutes an exit from the Egyptian market. In situations involving insolvency, the provisions of the Bankruptcy Law also apply.

CONCLUSION:

The Egyptian government is continuously striving to enhance the regulatory framework of investment in Egypt. An optimal legal structure is the foundation for the sustainability of any project or investment. Therefore, it is important to entrust qualified legal counsel through your investment journey in Egypt to ensure proper guidance and effective navigation of the country’s evolving regulatory landscape.

MESSAGE BY OUR FOUNDER MR. MOHAMED KHODEIR

The Egyptian market holds significant untapped potential, offering clear competitive advantages within the region. Over the past two decades, Egypt has made notable progress in reforming its investment climate. However, bureaucracy remains one of the key challenges for some investors.

The government continues to work actively on overcoming these barriers, yet achieving lasting and meaningful reform requires a collaborative effort. The private sector, including law firms, plays an essential role in shaping a more transparent, efficient and investor-friendly environment.

This Guide represents one step towards helping investors better understand the Egyptian investment landscape. By raising awareness and clearly identifying challenges, we enable the continuous improvement of the overall system. Reform is not a one-time achievement but an ongoing process—what we improve today must be reviewed, strengthened and adapted tomorrow to ensure long-term sustainability.