Facebook

10 steps for establishing a Limited Liability Company in Egypt

Establishing a limited liability company LLC is one of the most common concerns in the business world. It depends on the partnership between a certain number of individuals, no less than two and no more than 50.

Establishing a limited liability company LLC includes many procedures, measures, contracts and guarantees; to protect the rights of its owners and investors. This article explains everything related to establishing a limited liability company LLC 

How to establish a limited liability company in Egypt

Thanks to the new procedures and laws of the new investment law, which is characterized by complete flexibility, which provides a fertile environment for the labor market. The steps for establishing an Egyptian limited liability company LLC are now more accessible than before. The procedures for establishing a limited liability company LLC are: 

1- Fill out the primary contract form

A primary contract is a form that contains all the data and information related to the company, which is written manually before being re-entered electronically; To obtain the approval of the establishment of the company from the competent authority. This contract includes several clauses, including the company's name and address, the purpose of incorporation and its specified period

2- Fill out the security inquiries form

This form is used if the company's partners are of foreign nationality. It is obtained from the Security Information Office at the Investment Authority. Its data is filled out and then handed over to the Investment Authority; To enter data electronically.


3- Issuance of a certificate of non-repetition of the trade name

This certificate is obtained from the General Investment Authority, and it is preferable not to rush to get it; It has a validity period of a week.



4- Opening a bank account

The fourth procedure for establishing a limited liability company LLC is to open a bank account in which the company’s capital is deposited. The bank immediately freezes the account and prevents its disposal until the commercial register is extracted. The validity and signatures of the partners are reviewed on all papers and documents that have been submitted.

5- Withdrawal of the file follow-up form

Establishing a limited liability companies LLC requires withdrawing the company file follow-up form; To be used in concluding the company contract. This form includes the signature of all partners and their approval of all its terms.


6- Review the documents to ensure that all their conditions are met

One of the routine steps for incorporating a limited liability companies in Egypt is to review papers and records before entering them electronically; To ensure the success of the rest of the steps.

7- Print and pay the fees

After making sure that the papers fulfil all the conditions, payment receipts are received, which must be photocopied into three copies to be used in the establishment procedures.



8- Registering in the land registry

this step, the presence of the original power of attorney and the identity card of the agent of the owners of the company is confirmed. Then the file is transferred to the land registry; To authenticate and sign, only the agent's ID card is allowed and must be valid when signing. Then the approval to establish a limited liability company LLC is granted within 24 hours.

9- Follow up on the incorporation decision

After 24 hours, the agent must follow up on the decision to establish a limited liability companies.
Then the lawyer delivers the company's file to the Chambers of Commerce. The file includes some other documents, such as:
• Practicing certificate.
• The company's articles of incorporation documented in the land registry.
• The decision to establish the company.
• Originals of commercial registration fee receipts.

10- Issuance of the decision to establish the company

The application and registration form with the company file are submitted to the Commercial Registry; To review the submitted papers and issue the commercial registration number. Then the decision to establish a limited liability company LLC is made.




Fees for establishing a limited liability company in Egypt LLC

 

After knowing the papers required to establish a limited liability companies, you should know the costs and financial fees, which vary according to the documents required:

  1. Fees for documenting the company contract: 1000 EGP.
  2. Fees for registration in the commercial registry: 297 EGP.
  3. Fees for obtaining a certificate of practice: 200 EGP.
  4. Certificate of non-repetition of the trade name fees: 115 EGP.

What is ECPA, and what are its services?

ECPA is one of the largest accounting and consulting firms in Egypt. The company has extensive accounting and legal expertise and has gained many clients’ trusts. ECPA services for LLC incorporation include:

  • Providing legal advice related to the required papers and documents.
  • Preparing the company’s articles of incorporation and employment contracts.
  • Reviewing the company’s documents and solving all its problems.
  • Reviewing contracts and agreements concluded with the government and their impact on the company.
  • Helping you choose the appropriate activity for the company.
  • Registering the headquarters of the institution and its phone numbers. 

Frequently asked questions about incorporating a limited liability company

How do I start a limited liability company LLC in Egypt?

Through the General Investment Authority, after preparing the company's papers and documents. You should have a lawyer to handle the legal instructions properly.

Can foreigners start a business in Egypt?

Yes, but after four conditions are met, which are:
• The approval of the General Investment Authority.
• To be a partner of an Egyptian citizen.
• His share does not exceed 49%.
• Obtaining a commercial register.

What is the minimum capital for a limited liability companies LLC?

The minimum amount for establishing a company is about three hundred thousand Egyptian pounds.

What are the advantages of establishing a limited liability company in Egypt?

Self-independence; You are the decision maker and the owner of the capital that can manage and achieve significant profits.

Is it possible to establish a limited liability company LLC without a headquarters?

No. One of the conditions for obtaining a commercial registration number and incorporation decision is to own a company headquarters.

In summary, the dream of owning a limited liability company LLC is getting easier; With simple procedures, you can establish your company and feel absolute freedom in making decisions, Thanks to the policies and facilities introduced by the government and the services provided by distinguished legal consultancy firms such as ECPA.