Setting Up a Company in Egypt
Egypt is Africa's second-largest economy and the Arab world's most populous market — here is how foreign investors access it through GAFI, investment zones and the Investment Law in 2026.
Egypt offers foreign investors access to 105 million consumers, a strategic geographic position linking Africa, the Arab world and the Mediterranean, and a reformed investment framework under the Investment Law No. 72 of 2017. The General Authority for Investment and Free Zones (GAFI) is the single-window gateway for most corporate registrations and investment incentives.
Key facts for 2026
| Parameter | Detail |
|---|---|
| Corporate income tax | 22.5% (standard rate) |
| VAT | 14% (standard rate) |
| Foreign ownership | 100% in most sectors (no local partner required) |
| Min. capital (LLC) | EGP 1,000 (≈ USD 20) — no meaningful minimum |
| Free zone tax | 1–2% of production/sales value (instead of income tax) |
Corporate structures
The LLC (Sharika Massoulia Mahdouda — SHM) is the most common vehicle for foreign SMEs: 2–50 shareholders, no minimum paid-up capital requirement, 100% foreign ownership permissible. For larger enterprises, the SAE (Joint Stock Company, Sharika Mossahamat) applies — minimum EGP 250,000 capital, up to unlimited shareholders, required for listed entities and certain regulated sectors. Foreign companies can also register a branch for project-based operations, or a representative office (non-trading, for market research and liaison only).
Investment Law incentives
The Investment Law No. 72 of 2017 created a framework of automatic and additional incentives. Automatic incentives include a deduction of 50% of invested capital (spread over 7 years) from taxable income in geographic zones C and D (New Administrative Capital, Suez Canal Economic Zone and Upper Egypt zones). Additional incentives — available for projects that meet employment, technology or sector criteria — can include land at discounted rates, utility cost support and accelerated depreciation. GAFI issues a Single Licence covering all required approvals for qualifying projects.
Free Zones
Egypt's public free zones — Port Said, Alexandria, Cairo (Nasr City), Ismailia, Suez and others — offer a distinctive tax structure: instead of corporate income tax, free-zone entities pay 1% of total sales or production value for trading and 2% for services. No VAT applies within the zone on zone-bound activities. The Suez Canal Economic Zone (SCZone) is a newer, larger special economic zone offering infrastructure, port access and competitive incentive packages for manufacturing and logistics.
The incorporation process
- Choose between LLC, SAE, branch or free zone entity based on activity and ownership structure.
- Submit the incorporation application through GAFI's online portal or the Investment Service Centre (one-stop shop).
- Obtain the Commercial Register certificate and the Tax ID (Tax Card) from the Egyptian Tax Authority.
- Register with the Social Insurance Authority for employees.
- Register for VAT if annual turnover exceeds EGP 500,000.
- For regulated activities (financial services, healthcare, media, education): obtain the relevant sector authority approval before commencing operations.
- Open a corporate bank account — most Egyptian banks require a Commercial Register and Tax Card before account opening.
Frequently asked questions
Can a foreigner own 100% of an Egyptian company?
Yes, for most activities under the Investment Law. Restricted sectors include media, publishing, audiovisual and certain professional services requiring Egyptian citizenship. GAFI publishes the restricted activities list.
What is the corporate tax rate in Egypt?
22.5% standard corporate income tax. Free-zone entities pay 1–2% of sales or production value instead. Investment Law zone incentives can reduce the effective rate through capital deductions.
What is the VAT rate in Egypt?
14% standard rate. Mandatory registration applies when annual turnover exceeds EGP 500,000. Free-zone activities are outside the VAT net for goods consumed within the zone.
What is GAFI?
The General Authority for Investment and Free Zones — Egypt's primary investment promotion and company registration authority. GAFI operates Investment Service Centres as one-stop shops for company registration, sector approvals and investment incentive applications.
Official sources
- General Authority for Investment & Free Zones (GAFI)
- Egyptian Tax Authority
- Suez Canal Economic Zone (SCZone)
- Investment Law No. 72 of 2017
This guide is general information prepared by ARM Management and is current as at July 2026. It is not legal advice; tax rates, sector restrictions, currency regulations and incentive programmes change over time. Confirm with GAFI or an advisor before incorporating.
Access Egypt's 105-million-consumer market through the right structure.
ARM Management advises on Egyptian LLC and SAE formation, GAFI registration, free zone structuring and Investment Law incentive applications for foreign investors entering the Egyptian and broader African market.