To be able to conduct any business or trade activity in Egypt, you need to either register as an individual trader or to form a company under Companies Law no. 159/1981. Under the Companies Law, all companies should appoint an accounting auditor and submit annual financial statements. One can either form a one-person limited liability company, a two-persons or more limited liability company, a three-persons or more joint stock company. A limited liability company has the advantage of a simple management structure and can be managed by one manager who is also a shareholder, compared to the joint stock company where you should have a board of directors made of three persons at least.
A one-person company is a limited liability company, and hence the financial liability of the founder is limited to the capital of the company. The law provides the one-person company the same protection from financial liability it provides to the liability company provided the founder did not commit commercial fraud or tax evasion. It can be managed by one or more managers appointed upon formation. The capital can start as low as 1000EGP, and is distributed over a number of quotas.
The limited liability company from is the most popular among start-ups, as it allows two or more individuals or companies to share profits and losses while restricting their financial liability to the capital of the company.it can be managed by one more managers appointed upon formation. The capital can start as law as 1000EGP, to be divided in quotas to be distributed between the quota holders.
This company structure is commonly used for large enterprises, or long established business persons or entities. It is characterized by its management structure that includes a board of directors, meeting regularly to manage the company’s enterprise. Its capital should be a minimum of 250.000(two hundred and fifty thousand) Egyptian pound divided over shares distributed between three or more (unlimited) shareholders..