Egypt offers several company forms, and the form you choose decides the partners’ liability, how fast you can set up, and whether you can raise funding later. This article explains the differences between the limited liability company (LLC), the joint stock company, the one-person company and the branch of a foreign company, the real set-up timeline, and the tax obligations after incorporation.
Quick comparison of company types
| Item | LLC | Joint stock | One-person | Foreign branch |
|---|---|---|---|---|
| Partners | 2 to 50 partners | At least 3 shareholders | One founder, natural or legal person | Not applicable; part of the parent company |
| Minimum capital | No general minimum | EGP 250,000, with at least 10% paid on formation | EGP 1,000, deposited in full in the name of the company under formation | Confirm before formation |
| Liability | Limited to the partner’s share | Limited to the value of shares | Limited to the capital allocated to the company | The parent company is liable for the branch’s obligations |
| Management | One or more managers | Board of at least 3 members and general assemblies | The founder or an appointed manager | A branch manager |
| Separate legal entity | Yes | Yes | Yes | No |
| Best for | A wholly owned subsidiary | Wide funding and formal governance | A single founder | A foreign company operating directly |
Which form fits you?
- LLC: the most common choice for subsidiaries and operating businesses, and simpler to manage than a joint stock company.
- Joint stock company: suits planned wide funding, many shareholders or formal governance, and requires a board and general assemblies.
- One-person company: a natural or legal person may form it alone under Law No. 4 of 2018 (Articles 4 bis and 129 bis of the Companies Law). The founder is liable only up to the capital allocated to the company.
- Foreign branch: not a separate Egyptian entity, and the parent remains liable for its obligations. Capital and procedural details are confirmed before formation.
Can a foreigner own the company fully?
Yes, in most activities and without an Egyptian partner. Regulated activities such as banking and insurance are excluded. We confirm the position for your activity before formation.
The real set-up timeline
- Trade name reservation: about 48 hours.
- Formation (articles of association and commercial register): one to three working days on the VIP track, and about two to three weeks on the standard track.
- Opening the tax file: about one to two weeks.
- Tax card: received about 15 days after the tax file is opened.
- Electronic seal: can be issued once the tax file is opened, and is required to issue electronic tax invoices.
These periods are estimates and vary by activity and the authorities involved. For the government fees and an estimate calculator, see Company Formation Fees in Egypt.
Taxes after incorporation
- Corporate income tax: 22.5% of net profits, the standard rate for legal persons.
- Value added tax: the standard rate is 14%, but some goods and services appear in schedules attached to the law at different rates, some are exempt, and some require registration regardless of turnover, without the EGP 500,000 threshold.
The simplified tax regime (Law No. 6 of 2025)
It applies to businesses whose annual turnover does not exceed EGP 20 million, and LLCs can use it if they meet the conditions. Tax is a percentage of turnover:
| Annual turnover | Rate |
|---|---|
| Up to EGP 500,000 | 0.4% |
| EGP 500,000 to 2 million | 0.5% |
| EGP 2 million to 3 million | 0.75% |
| EGP 3 million to 10 million | 1% |
| EGP 10 million to 20 million | 1.5% |
Frequently asked questions
What is the capital of a one-person company?
EGP 1,000, deposited in full in the name of the company under formation, after reserving the trade name and before formation.
Do I need an Egyptian partner to form a company?
In most activities, no. Regulated activities are excluded, and we confirm the position for your activity before formation.
How long does it take to form a company?
One to three working days on the VIP track and about two to three weeks on the standard track, followed by opening the tax file within one to two weeks.
Is VAT 14% on everything?
No. 14% is the standard rate. Some goods and services have different rates in the schedules attached to the law, some are exempt, and some must be registered regardless of turnover.
What is the difference between an LLC and a joint stock company?
An LLC is simpler to manage and has no general minimum capital. A joint stock company needs EGP 250,000, a board and general assemblies, and suits wide funding.
Want to know the best form for your company?
ItQan – Advocates & Legal Consultants handles company formation from trade name reservation to the tax card. See our company formation lawyer service in Egypt.
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Or email: Info@itqanlaw.com
