This is our first StartRight blog which answers some key questions concerning incorporating corporate entities in Egypt. Follow the upcoming episodes for additional information concerning startups in Egypt and the MENA region.
What is the competent authority for the process of incorporation?
The General Authority for Investment (GAFI) is, almost exclusively, the competent authority for the incorporation process. It is one of the authorities that have the jurisdiction to administer the incorporation process, collect the relevant fees, and register the company in the commercial registry.
Are there any necessary procedures to register the company name?
Yes. Before the company is incorporated, the founder must register the company’s name (for copyright purposes). This is done via an application form that is submitted to GAFI for approval, whereby the selected company name does not infringe upon the copyrights of any existing company.
The name chosen by the company shall be reserved only for two weeks, during which the company finalizes its incorporation process.
Is there a specific form for the company’s articles of association and articles of incorporation?
Yes. The founder informs GAFI’s employees of the company information and the official will then fill out the official templates for the company’s articles of association and articles of incorporation.
How long does it take to incorporate the company and register it in the commercial registry?
It usually takes approximately 5-7 business days to register the company in the commercial registry and issue its articles of incorporation and articles of association. An express service is available for an extra fee whereby the company may be incorporated in one day.
What are the required documents for the incorporation process?
The required documents for the incorporation process usually include the following:
1- Proof of the registration of the company’s name (for copyright purposes);
2- Regarding joint-stock companies (JSCs), a bank statement proving the deposit of at least 10% of the issued capital will need to be provided; given that such capital will be increased to 25% within three months, and will reach 100% within a period of five years;
3- A Power of Attorney from the shareholders which shall specifically give the authority to incorporate the company and represent them before the notary public;
4- Identification documents (national ID for Egyptians/passport for expats);
5- The registration certificate of the appointed auditor to be addressed to GAFI;
6- A photocopy of the Egyptian Bar membership card of the legal counsel of the company and identification document;
7- Security filling the clearance form for any foreign founders or directors;
8- The name and address of the company’s legal counsel, who must be a lawyer registered at the tier of appeal or higher.
Note: In addition to the aforementioned documents, some additional documents, approvals, or licenses may be required depending on the company’s activity and the location area of practice.