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World Watch/Egypt/Starting a Business

Starting a Business ยท Egypt

How to start a business in Egypt as a foreigner (2026)

ModerateCountry index 75 ยท B+

Egypt shaded by its starting a business status

Starting a business in Egypt as a foreigner: moderate.

FrameworkInvestment Law No. 72 of 2017 and Companies Law No. 159 of 1981, administered by the General Authority for Investment and Free Zones (GAFI) through a one-stop-shop Investor Service Centre and the Digital Egypt Investment Licensing Platform.

Egypt broadly welcomes foreign investors and permits up to 100% foreign ownership of Limited Liability Companies (LLCs) and Joint Stock Companies (JSCs) in most sectors, with GAFI acting as a single-window incorporator that can deliver a memorandum of association, commercial register entry, tax card and social-security file within roughly one business day. However, several sectors carry ownership caps or Egyptian-partner requirements (importation for trade capped at 49% foreign shareholding, commercial agencies and media requiring majority-Egyptian ownership), foreign managers need security clearance and work/residence permits, and in practice bank-account opening, notarisations and sector licences add friction beyond the formal timeline.

Key points

Foreign ownership

Investment Law No. 72/2017 allows up to 100% foreign ownership of LLCs and JSCs in most sectors with no Egyptian-partner requirement; carve-outs cap foreign shareholding at 49% for import-for-trade companies and require majority-Egyptian ownership for commercial agencies, media/press and certain strategic/security-related activities.

Minimum capital

LLCs have no statutory minimum capital under the Companies Law (issued capital must be paid in full on incorporation, so a nominal amount such as EGP 1,000 is typical). Non-listed JSCs require at least EGP 250,000 (10% paid on incorporation, 25% within three months, balance within five years); listed JSCs require EGP 500,000.

Setup steps via GAFI

Digital Egypt Investment Licensing Platform: (1) register on the portal; (2) reserve a non-confusion name and select activity; (3) upload founder IDs/passports, articles of association and lease of registered address; (4) pay fees electronically; (5) e-sign the memorandum; (6) receive commercial registration, tax card, VAT and social-security registration, with GAFI handling Bar Association endorsement, FRA approval (where relevant) and Chamber of Commerce membership on the investor's behalf.

Timeline

Name approval typically 1โ€“2 business days; once a complete file is submitted through GAFI's one-stop shop, incorporation documents (memorandum, commercial register, tax ID, VAT and social-security registrations) can be issued within about one business day, though bank-account opening, sector licences and Central Bank capital-import certification usually extend the practical timeline to several weeks.

Founders and managers

LLCs need 2โ€“50 partners (any nationality) and may be managed by a manager of any nationality; JSCs need at least three founders. A foreign manager must obtain security clearance plus a work and residence permit, and any foreigner applying for a work permit must show a bank certificate evidencing a USD 35,000 capital contribution to the company.

Incentives and free zones

Investment Law No. 72/2017 offers general, special and additional incentives (income-tax deductions of 30โ€“50% on investment costs in designated zones/sectors, customs relief, and Golden Licence one-stop approvals for strategic projects); public and private free zones offer full tax and customs exemptions in exchange for export orientation and annual GAFI fees.

Timeline - major decisions & events

May 19, 2026guidance
Egypt unveils plan to overhaul business licensing and capital rules

GAFI announced a draft overhaul of company licensing and minimum-capital requirements aimed at equalising conditions for local and foreign investors and further easing incorporation. It signals the next phase of streamlining how businesses are started.

Daily News Egypt โ†—
Feb 2, 2026guidance
GAFI digital licensing platform offers 460 services from 41 government bodies

GAFI's unified electronic licensing platform consolidated 460 services from 41 government entities, letting investors complete establishment and licensing online. It operationalises the one-stop-shop concept for starting and running a business.

Daily News Egypt โ†—
Sep 28, 2025guidanceofficial
Draft new Companies Law mandates electronic approvals within 20 working days

GAFI confirmed the upcoming Companies Law will require all government bodies to issue incorporation-related approvals electronically within a maximum of 20 working days, the same timeframe as the Golden License. Startups are expected to benefit most from the faster, fully digital process.

GAFI โ†—
Jun 28, 2022lawofficial
Golden License (single approval) framework simplified

A Prime Ministerial decree amended the Investment Law's executive regulations to make it easier to obtain the 'golden license,' a single approval covering a project's full lifecycle, from incorporation and land allocation to operation, bypassing multiple agencies. It became a flagship tool for fast-tracking major new investments.

UNCTAD Investment Policy Hub โ†—
Oct 24, 2019guidanceofficial
World Bank Doing Business 2020: Egypt improves company formation

Egypt rose to 114th overall and jumped 19 places in the 'starting a business' subindex after abolishing the non-confusion certificate requirement and upgrading its one-stop shop. It was named among the world's top 25 reformers that year.

World Bank โ†—
Jan 16, 2018lawofficial
Law No. 4 of 2018 introduces the One-Person Company

The most significant amendment to the Companies Law since 1981 created the single-person (One-Person) Company, letting a sole natural or legal person form a limited-liability entity without partners, and allowed electronic board procedures. It opened formal incorporation to solo small investors.

GAFI โ†—
Oct 28, 2017lawofficial
Executive Regulations of the Investment Law issued (Decree 2310/2017)

Prime Ministerial Decree No. 2310 of 2017 issued the 132-article executive regulations operationalising the Investor Service Center, fixed service timeframes, and the one-stop-shop. It set the detailed procedures investors follow to incorporate.

GAFI โ†—
May 31, 2017lawofficial
Investment Law No. 72 of 2017 enacted

Replacing the 1997 Investment Guarantees and Incentives Law, the new law established GAFI's Investor Service Center as a one-stop shop, enabling same-day electronic company registration when paperwork is complete, plus incentives and investor guarantees. It is the cornerstone of Egypt's modern business-formation regime.

GAFI โ†—

Egypt - other topics

Starting a Business in other countries

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