Company Formation in Egypt 2026: Company Types, Documents & Steps
Company formation in Egypt 2026: choosing the right company type, Law 159 vs Law 72, capital rules, required documents and the online steps.
Many people who contact us start with the same question: what is the cheapest company I can open in Egypt? The more important question is a different one: if the business runs into debt, who pays? Your answer decides the type of company you should choose, and it matters more than the registration fees.
Here we walk through company formation in Egypt the way we explain it to our clients: how to choose the company type, the difference between Law 159 and Law 72, how much capital you need, the documents, and the online steps with the General Authority for Investment (GAFI).
How to choose the right company type
Before thinking about the name or the activity, four questions decide the right type for you:
Will you be personally liable for the company's debts, or only up to your capital?
How easy will it be to sell your share or bring in a new partner later?
Do you want to manage the company yourself, or just be a shareholder?
How much capital do you need, and do you have to deposit it in a bank?
Types of companies in Egypt
Sole proprietorship
One person who is the owner and the manager. The problem is liability: if the business owes EGP 50,000 and can't pay, the money is taken from your personal assets, whether that is your bank account, your apartment or your car.
General partnership
Usually between people who trust each other. Like a sole proprietorship, the partners are personally liable for the debts. Changing ownership is also hard: for a partner to leave or a new one to join, all partners must agree.
Limited liability company (LLC)
The most common choice, and the one we recommend in most cases. The company has its own legal personality, so its debts stay with the company and don't reach your personal money. Selling your share is easy too: you are free to sell it, and you don't need the other partners to be present.
Single-person company
One owner with limited liability. It protects your personal money like an LLC, but you have to deposit the full capital in the bank. We compare it with the Saudi version in our article on the single-person company.
Joint stock company
Suitable for bigger projects with shareholders. Its minimum capital is EGP 250,000, and some activities, such as sports clubs, can only be done through a joint stock company. EL-LWAA itself is a joint stock company.
Partnership limited by shares
A mixed company. At least one general partner manages it and is liable for its debts, while the limited partners are only liable up to their shares and have no say in management.
Type | Personal liability for debts | Capital | Transferring ownership |
|---|---|---|---|
Sole proprietorship | Yes | No bank deposit | Not applicable |
General partnership | Yes | As agreed | Needs all partners' approval |
LLC | No | No bank deposit | Easy |
Single-person company | No | Full deposit required | By power of attorney |
Joint stock company | No | At least EGP 250,000 | Through shares |
How much capital do you need?
The minimum capital for a company in Egypt is EGP 1,000. In an LLC you choose the capital and don't deposit it. In a single-person company you deposit the full amount. In a joint stock company you pay 10% at incorporation, 25% within three months, and the rest within five years, into a bank account in the company's name.
Some activities have their own minimum. Export, for example, needs EGP 50,000 and import needs EGP 2 million. Keep in mind that the lower the capital, the lower the fees, so there's no point in a high capital figure unless your activity requires it.
Law 159 or Law 72?
When you apply, you choose the law your company falls under. Law 159 is the general companies law, and Law 72 is the investment law. The difference affects your costs:
Item | Law 159 | Law 72 |
|---|---|---|
Location | Anywhere | Its incentives are linked to new areas, such as 6th of October |
Chamber fees | You pay the chamber subscription for activities that have one (such as technology) | Exempt from the chamber subscription |
Foreign investor residency | Not available | Available |
There is a condition under Law 72: for every Law 159 activity you add, you also add an activity from the Law 72 list. And regardless of the law, some activities need an approval from their regulator, such as transport, medicine and education.
If you are an Egyptian with an office in a busy area like Tahrir or Nasr City and your activity has no chamber, Law 159 is usually enough. If you are a foreigner who wants residency, Law 72 is a must.
Documents required
A valid national ID, or a passport for foreigners.
A direct power of attorney from each partner to the lawyer handling the formation. A sub-delegation won't be accepted. If you are abroad, see how to make a power of attorney from abroad.
A lease contract for the company's address.
A name clearance certificate proving the name isn't already used.
A chamber certificate if your activity has one, such as real estate marketing.
An approval from your employer if you are an insured employee.
A security clearance for any foreign partner.
Security clearance for foreigners
Any foreigner joining the company needs a security clearance before the company can be set up, and again whenever a foreigner joins or leaves later. The time it takes depends on nationality: Saudi nationals usually get a quick response, while some other nationalities take longer.
Steps to set up a company in Egypt online
1. Choose the company type and the law
After creating your account on the GAFI portal, you choose the company type, then Law 159 or 72.
2. Choose the company name
The Arabic name is required, the English one is optional, and the name must match your activity. A company called "Sama Contracting" has to work in contracting.
3. Add the activities
You choose your activities and attach the chamber certificate if any of them needs one. You don't have to practice every activity you add.
4. Set the capital and the partners' shares
Each partner's share is agreed between the partners, and it is separate from management. You can be a partner without being a manager.
5. Define the managers and their powers
You set who manages the company and exactly what each manager can do, such as opening bank accounts or selling company assets.
6. Appoint the auditor and the legal counsel
Every company needs an auditor, and a legal counsel who is at least an appeals-level lawyer.
Selling your share or leaving the company
In an LLC, a partner leaves through a sale contract signed by the seller and the buyer. The manager prepares the papers and the lawyer completes the procedure at GAFI, with no need for either of them to attend. In a general partnership, all partners have to agree.
An Egyptian company as your way into Saudi Arabia
If your goal is to expand into Saudi Arabia, the Ministry of Investment there asks for a parent company outside the Kingdom. Many of our clients start with an Egyptian company built to the Saudi requirements, and we set it up for them as part of our Saudi formation package. Read more in our guide to company formation in Saudi Arabia.
Why EL-LWAA
We have been setting up companies for more than 40 years, in Egypt and in Saudi Arabia. In this session, Ms. Sama Ahmed Ellwaa explains the company types and the formation steps in detail, and answers attendees' questions:
Contact us and we will help you choose the company type and the law that fit your activity.
FAQ
What is the best company type in Egypt?
In most cases, an LLC. It protects your personal money, doesn't require a capital deposit, and makes it easy to sell your share later.
Does an LLC need a capital deposit?
No. A deposit is required for a single-person company and a joint stock company.
What is the minimum capital?
EGP 1,000 for most activities, with higher minimums for some, such as export and import.
Can a foreigner set up a company in Egypt and get residency?
Yes, if the company is set up under Law 72, after a security clearance.
Do I have to work in every activity I register?
No, you don't have to practice every activity in your commercial register.
Can I move my company from Law 159 to Law 72?
Yes. This is called changing the umbrella, and you can also change the company type later.
Does setting up through GAFI exempt a foreign partner from the security clearance?
No. Any foreign partner needs a security clearance before the company is set up, whatever the route.
Can an employee set up a company or join one as a partner?
Yes, but if you are an insured employee you need your employer's approval to join the company.
Do I need an accountant and a lawyer to set up the company?
Yes. The articles of association require an auditor and a legal counsel who is at least an appeals-level lawyer.
I'm under 21. Can I set up a company?
The age of majority in Egypt is 21, and anyone younger may need extra procedures to join a company. Contact us and we'll explain the right route for your case.