Business Solutions 3
Business Solutions – Starting a Business
3 – Choosing the size of business you want
The laws in Egypt on how businesses can be set up and how they are taxed have been revised in recent years. Whereas once it took a lot of capital to form a limited company it can now be done with as little as 1,000 le.
However, although it is possible to have a company with a small capital the range of activities that the company can undertake is restricted. Businesses that have large financial commitments to the public have to provide greater security and a larger capital investment is required.
The law still requires that a limited company cannot be wholly owned by a foreigner so there is a requirement for the company to have at least one Egyptian shareholder/manager. The minimum holding of this shareholder would be 1%.
When the shareholders have decided on whom the founding shareholders are and the size of the proposed investment, they then need a lease on the premises from which the business will be run and a statement from the bank saying that the money covering the capital has been deposited. The lease and the account have to be in the company name.
Registration for companies in Upper Egypt is in Assuit. This means that most of the papers have been to taken there for stamping and approval, few of the papers can be completed in Luxor.
The actual cost of completion of the paperwork will vary from lawyer to lawyer and the fee should be agreed before work starts.
