How to start a business in Egypt

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Why start a business in Egypt?

If you are wondering how to start a business in Egypt, it is important to understand the unique opportunities and challenges present in this dynamic market.

Egypt is one of the three largest economies in Africa and is strategically positioned at a crossroads between Europe, Aisa and Africa. This makes the country a significant player in international trade in the Middle East and Africa regions. Egypt is home to the Suez Canal which connects the Mediterranean Sea with the Red Sea, and constitutes a vital artery for global commerce.

Egypt has a total area of approximately 1,001,450 square kilometers, including 995,450 square kilometers of land and 6,000 square kilometers of water. According to the Egyptian Central Agency for Public Mobilization and Statistics, the population exceeded 108 million people inside Egypt in 2025. Egypt is divided into 27 governorates, 217 cities, and 4617 villages. The governorates with the highest population are Cairo (10.8%), Giza (8.6%), and Sharqiyya (7.4%).

The Egyptian legal system is primarily based on the French civil law system, supplemented by various European codes and principles of religious law. In practice, religious law is applied exclusively to personal status and family matters, which are governed by the religious law of the individual concerned. The keystone of Egyptian law and the legal framework is the Constitution, which was adopted by referendum in January 2014 and amended in April 2019 (the “Constitution”).

Investment Outlook

The Egyptian government has undertaken significant efforts to attract more Foreign Direct Investment (FDI) to the country. These efforts resulted in attracting approximately USD 47 billion in FDI inflows in 2024 compared to around USD 10 billion in 2023, with a substantial portion directed toward infrastructure and development projects. This momentum was maintained in 2025 where USD 11 billion of FDI was injected into the market during the 1^st half of 2025 alone.

Major Investment Projects

The government is currently implementing several large-scale “mega projects” including, inter alia: (i) the New Administrative Capital, the first phase’s area of approximately 44.1 square kilometers and an estimated construction value of USD 45 billion; (ii) Ras El Hekma Development, which is a USD 35 billion waterfront project on Egypt’s North Coast is expected to become a major economic and tourism hub, featuring residential, commercial, and hospitality facilities, as well as an international airport and high-speed rail connections, with completion anticipated by 2045. (iii) The Zohr Gas field, the largest natural gas discovery in the Mediterranean Sea; (iv) Benban Solar Park, one of the world’s largest photovoltaic power installations, with a planned total capacity of 1650 MWp. in the world; (v) El Dabaa Nuclear Power Plant, Egypt’s first nuclear power plant, (vi) the Cairo Monorail project, a two-line monorail rapid transit system linking Cairo with the New Administrative Capital, one of the longest monorail systems in the world which monorail network will span 100 km and 35 stations, valued at approximately USD 4.5 billion, and (vii) the opening of the Grand Egyptian Museum, one of the largest museum development projects in the world, with an investment value of approximately USD 1 billion, which is a significant development in the Tourism Sector in Egypt, aimed at achieving the goal of 30 million tourists by 2030.

SH&P Experience in Major Projects

Soliman, Hashish & Partners is proud of taking part in several mega projects including, for example, the following:

(i) one of the world’s largest technology companies in implementing the IT infrastructure of Phase I of the New Administrative Capital;
(ii) one of the world’s largest energy companies in the implementation of solar power plants in Benban Solar Park;
(iii) one of the largest European transportation companies in the implementation of the fourth phase of the metro;
(iv) one of the world’s largest energy companies in participating in the construction of El Dabaa Nuclear Power Plant;
(v) The 1^st decarbonization project in Egypt announced during COP27; and
(vi) Acquisition of the major stake in the operation company of the largest seaport in Egypt.

Recent Investment Reforms

The Egyptian Government has undertaken significant efforts towards the adoption and implementation of key legislative reforms aimed at enhancing the investment climate, including, inter alia, amendments to Law No. 160 of 2023, which amended Investment Law No. 72 of 2017 to further enhance investment incentives and streamline regulatory procedures.

These legislative reforms reflect Egypt's ongoing commitment to fostering a conducive investment environment, promoting economic growth, and strengthening integration into the global economy.

Egypt’s Business Environment & Key Investment Reforms

Egypt has introduced major structural and economic reforms to facilitate investment, significantly improving the ease of doing business. Key tools now available to Investors include:

• The Golden License, which provides unified approval mechanism allowing eligible strategic projects to obtain land allocation, construction permits, operational approvals, and incentives through a single step/authority.
• Investment Zones & Free Zones, offering customs and tax advantages for specific and targeted industries.
• The Investors Service Center (ISC), which serves as a one-stop shop for company incorporation, licensing and post-establishment services, significantly reduces procedural timelines for various types of companies.

Corporate Structures

The conduct of business in Egypt is governed by a number of laws including, inter alia: (i) the Trade Code No. 17 of 1999 (the “Trade Code”); (ii) the Companies Law No. 159 of 1981 (the “Companies Law”) and the Executive Regulation thereof; (iii) the Investment Law No. 72 of 2017 (the “Investment Law”); and (iv) the Commercial Registry Law No. 34 of 1976 (the “Commercial Registry Law”).

The Companies law and Trade Code provide several legal forms of corporate structures similar to those legal forms that are available in North Africa and Europe.

Entry Options for Foreign Investors

Foreign Investors have a number of alternatives to plan for or start business in the Egyptian market as follows:

For Pre-Investment Stage

Foreign Investors are entitled by virtue of the Companies Law to open a representative office in Egypt. This is for the purpose of studying the Egyptian market and/or potentials of productions.

However, representative offices are not allowed throughout their operation in Egypt to do any kind of business.

For Direct Investment Structures

Foreign Investors may establish any of the following types of companies for doing business in the Egyptian Market:

Branch of foreign company

The Companies Law permits foreign companies to establish their branches in Egypt to perform works of a contractual nature. However, the said branch must be registered with the competent Commercial Registration Office, and the registration process usually takes up to three (3) working days.

In order for a foreign company to establish a branch in Egypt, such foreign company must be awarded a contract, such as a construction contract, to carry out a specific scope of work within Egypt.

The foreign company must also appoint a manager, of any nationality thereof to represent the said foreign company in Egypt.

Joint Stock Company (“JSC”)

The Companies Law allows foreign Investors to incorporate JSC, which resembles a U.S. corporation or a French société anonyme.

Investors. The incorporation of a non-publicly listed JSC requires a minimum of three (3) founders and a minimum capital of EGP 250,000.

In general, there are no restrictions on the nationality of the founders.

Subscribers are obliged to subscribe to 10% of the issued capital during the formation process of a JSC and subscription should reach 25% during the three (3) months after formation thereof. The remaining unpaid capital should be subscribed within a period of five (5) years.

JSC must be managed by a Board of Directors, which must comprise of at least three (3) members of any nationality.

A Limited Liability Company (“LLC”)

LLC in Egypt is comparable to the French société a responsibilite limitee (S.A.R.L.), and is similar toan incorporated partnership, a U.S. closed corporation, or a British private limited company.

Under Egyptian Law no minimum capital required for the incorporation of LLC. Notwithstanding the foregoing, the issued capital of LLC shall be paid in full upon submission of the incorporation application.

The establishment of a LLC requires a minimum of two (2) partners and may include up to a maximum of fifty (50) partners. Furthermore, there are no restrictions on the nationality of the partners.

A LLC may be managed by one manager of any nationality.

In general, a LLC shall comply with the same provisions of Corporate Governance applicable to JSC.

One Person Company (“OPC”)

Some of the recent amendments made to the Companies Law introduced OPC for the first time in Egypt. OPC may be owned by either a natural or juristic person.

OPC name may be diverted from either the purpose its purpose or from the name of its sole shareholder. The name must be followed by a statement indicating that it is an OPC with limited liability.

The minimum capital requirement for OPC is EGP 1,000, which shall be fully paid upon incorporation in accordance with the latest provisions of the Companies Law.

OPC shall not be permitted to undertake any of the following:

• Incorporate another OPC;
• Conduct a Public Offering;
• Divide its share capital into transferable shares;
• Raise finance by way of issuing bonds; and
• Undertake any activities relating to insurance, banking, savings, receiving funds, and investment management (similarly to LLC).