Establishing a company with a foreign partner in Egypt requires following specific steps to ensure the success of the process. Therefore, the demand for dealing with specialized offices is increasing so that they carry out all the legal procedures and facilitate the extraction of the necessary papers and licenses to start work. This was from the beginning of 2017, when Investment Law No. 72 was issued. Which encourages foreigners to invest in Egypt and allows them to establish their company within the country with an Egyptian partner; Taking into account that the largest percentage is for the Egyptian partner, in order to encourage internal investment, strengthen the economy and provide job opportunities for young people.
Establishing a company with a foreign partner in Egypt
Establishing a company with a foreign partner in Egypt
There are many steps that can be followed to successfully establish a company with a foreign partner in Egypt, which will help build strong foundations for the company and achieve sustainable success in the market. Therefore, you can carry out the establishment steps in two ways, each of which we will explain with the steps in the following lines:
First: Establishing the company through the Investor Services Center
- The company owner or his agent goes to the Investor Services Center and requests the service of establishing a new company.
- There will be a set of official papers required that must be submitted in a file to be reviewed by specialists working at the center.
- The applicant waits for a day until the papers are reviewed and the issuance of the articles of incorporation is approved, after which his signatures are completed electronically.
- The investor pays the fees required to establish the company, and this can be done using credit cards, or by direct payment to the competent authorities.
Second: Establishing the company through the electronic portal
- The investor visits the official website of the Investment Authority in Egypt through Next link.
- The applicant or his agent begins by creating an official account on that platform.
- The site requests that a set of official papers be uploaded, which must be clearly visible so that they can be easily reviewed by those in charge of the site.
- The applicant follows up on his application, and if it is approved within one business day, he begins paying the required fees, using a credit card.
- After completing the above, the electronic contract is created until it is signed, and then the Investment Authority sends the papers to the company’s address.
See also: The most important steps for establishing an import and export company
Conditions for a foreigner to establish a company in Egypt
A foreign investor who wants to open a company of any type, whether it is a joint-venture company, a limited liability company, a closed company, or any other company, must provide several conditions, the most important of which are the following:
- A copy of the powers of attorney of partners in the same company, with the original brought for review.
- Submitting an incorporation contract explaining the nature of the partnership and its details, taking into account that it is documented in the real estate registry.
- A copy of proof of identity for all partners, whether it is a national ID card for Egyptian partners or a passport for foreign partners.
- A copy of the union card of the agent or Lawyer establishing companies in Egypt Who took over the task of making the contract.
- Partners' security inquiry forms.
- The agent must bring a valid and clear photo of identification.
- Extracting and submitting approvals from the competent authorities, if the company’s activity requires prior approval from one of the concerned authorities.
The amount of fees required to establish a company with a foreign partner
Establishing a company with a foreign partner in Egypt
Establishing a company with a foreign partner in Egypt requires paying some fees to different parties until the establishment procedures are completed. The most important of these fees are the following:
- The value of the memorandum of association fee amounts to one thousandth of the total amount of the company’s capital.
- Commercial Syndicate fees amount to 125 pounds, provided that the company’s capital is 500 thousand pounds or less, but if the company’s capital is greater, 250 pounds are paid.
- Obtaining a profession practice certificate is required with an annual subscription of 2 per thousand of the value of the paid-up capital.
Read also: Learn about the steps to establish a sole proprietorship in Egypt
The most important tips for successfully establishing a company with a foreign partner
When establishing a joint company with a foreign partner, there are several tips that must be taken into account to ensure the success of the business and avoid potential problems. Here are some important tips:
1. Clarity of goals and expectationsDefining the common goals between you and the foreign partner accurately and clearly, in addition to defining the roles and responsibilities clearly and specifically.
2. Choose a reliable partnerChoose a reliable and experienced foreign partner in the field, and make sure that it has credibility and a good reputation.
3. Legal advice: Consult an attorney who specializes in international laws and international partnerships to ensure a sound and reliable partnership agreement is drawn up.
4. Good communicationCommunication channels with the foreign partner must be effective and open, to ensure a clear understanding between the two partners.
5. Respect culture and customs: Understand your foreign partner's culture and respect his or her customs and traditions, as these factors can be important to the success of the relationship.
6. Innovation and development: Being a joint venture means exchanging experiences and knowledge, benefiting from the advantages and technologies that the foreign partner can offer.
7. Negotiating financial terms: Make sure that you and the foreign partner are aware of the financial and investment terms related to the partnership and the expected profits.
8. Preparing a strategic plan: Developing a joint business plan and marketing strategy for the company, setting time goals and determining how to measure success.
By following these important tips, you can reduce risks and increase the chances of success of your joint venture with a foreign partner.
Successful strategies for expanding the business of a joint venture company with a foreign partner
There are successful strategies that you must take into consideration to expand your joint company’s business with a foreign partner, especially if you want to achieve sustainable growth and wide popularity in the local market, as expansion through a foreign partnership enhances the work experience and provides diverse resources and expertise, and these steps may begin by defining the company’s goals. Searching for a reliable partner who has experience and knowledge of the Egyptian market, and the legal and administrative aspects are among the basic pillars, so it is necessary to ensure compliance with Egyptian laws and provide all required licenses.
Successful strategies also include building a joint business plan that includes clearly distributing roles and responsibilities, emphasizing cultural compatibility and continuous dialogue between partners to avoid any differences that may hinder the workflow. Therefore, it is important to invest time in studying the Egyptian market and understanding customer needs, by conducting comprehensive research and environmental analysis. Internal and external.
Hence, benefiting from shared resources and advanced technologies from the foreign partner is one of the most prominent advantages, which enables the company to adopt new methods in production and marketing and reach new markets easily. In addition, building a strong network of relationships with suppliers and local partners enhances the chances of success, as it By implementing these strategies, the company can achieve significant progress and tangible expansion in the Egyptian market.
Establishing a company with a foreign partner in Egypt
The most prominent challenges that you may face in establishing a company with a foreign partner
Establishing a joint company with a foreign partner can be a great challenge due to the differences in cultures, languages, and legal legislation between the two countries. Here are some of the most prominent challenges that you may face in this context:
1. Language and cultureThere may be difficulty in accurately understanding between you and your foreign partner due to differences in cultures and languages, so you must ensure that there are effective means of communication and understanding with the foreign partner.
2. rules and regulationsThere may be challenges in understanding and dealing with local laws and legislation in both countries, and you may need local legal advisors to guide you through this process.
3. Management and Organization: It is important to develop an accurate partnership contract that defines the powers and responsibilities of each partner and how important decisions are made.
4. Financial dealingThe company's financing must be determined, and the financial investments of each partner, their financial rights, and each partner's share of the profits must be clarified.
5. Communication and conflict resolutionYou may face challenges in communicating with your foreign partner due to geographical distance and cultural differences, so mechanisms must be put in place to resolve potential disputes in peaceful and effective ways.
In short, establishing a company with a foreign partner requires good planning and a deep understanding of potential challenges and how to deal with them effectively, to ensure the success of the partnership and the growth of the joint business.
How to build a strong relationship with a foreign partner to ensure the success of the partnership
Building a strong relationship with a foreign partner is one of the most important steps for the success of establishing a company with a foreign partner in Egypt, which requires respecting the culture, language, and values of the foreign partner. Here are some points that can be followed to ensure the success of the partnership:
1. Language learningStudy the culture of your foreign partner, learn the language he speaks, and try to understand and respect cultural differences.
2. Building confidence: Be honest and transparent in your dealings with the foreign partner, keep the promises you make, and be reliable in all matters.
3. Good communication: Maintain effective communication channels with your foreign partner, be prepared to deal with any problems that may arise and try to resolve them constructively.
4. Setting common goals: Clearly define the partnership goal and work to achieve it together, and make sure that both parties are committed to achieving this goal.
5. mutual respect: Be respectful and cooperative with your foreign partner, and do not forget that mutual respect is the foundation of any successful relationship.
6. Take advantage of diversityDiversity in cultures and backgrounds is an opportunity to learn and develop. Do not ignore the values and traditions of your foreign partner, but rather benefit from them to strengthen the partnership.
How do you reach potential customers and achieve success with your foreign partnership?
To achieve success with a foreign partnership and reach potential customers, you must follow thoughtful and effective marketing strategies, and we at Diwan Company are keen to provide assistance in this regard. Here are some steps that will help you reach customers and achieve success in your foreign partnership:
- Before starting marketing, you must identify the target market you want to target and understand their needs and interests.
- Create a website compatible with search engines, as online presence is essential for reaching potential customers, so it is advisable to create a website to ensure it reaches a large number of people.
- Build a strong presence on the social media platforms your potential customers use, and post engaging and valuable content to grab their attention.
- You can use online advertising, email, and content marketing to reach your target audience and capture their attention.
- Study your main competitors and determine where you can differentiate and provide added value to potential customers.
- Communicate with potential customers on a regular basis, listen to their needs and propose appropriate solutions.
The role of Dewan Company in establishing companies
After knowing everything related to establishing a company with a foreign partner in Egypt, it is your turn to clarify the effective role you play Diwan Firm In the work of establishing companies and the services they provide, including the following:
- Providing legal advice to the client and helping him choose the appropriate legal form for the company, so that he can achieve the highest benefit and benefit from the greatest number of advantages.
- Establishing general regulations for the company, such as the financial regulations, purchasing regulations, and sanctions regulations, because these are the matters that help organize the work properly.
- Sharing the customer’s opinion in choosing the trade name appropriate to the nature of the activity.
- Preparing official papers and documents related to establishing the company.
- Completion of obtaining work and residence permits for foreign persons working within the country.
- Work on officially registering the trademark with the Ministry of Commerce.
- Extracting the industrial register and working on completing the facility license.
- The law experts working in the office represent the company before various official bodies, such as social insurance, labor offices, and any other institutions.
- Drafting the necessary contracts for employees within the company and completing insurance procedures for them.
- Obtaining the necessary licenses and approvals to start conducting business and operating the institution.
- Obtaining an import card that enables its holder to order production supplies from abroad.
- Registering the company in the industrial registry, the commercial registry, as well as the registry of exporters and importers.
- Dewan Company undertakes the task of selling shares or assigning shares.
- Open the company's tax file.
In conclusion; If you want to deal with a specialized office to complete the procedures and papers for establishing a company with a foreign partner in Egypt, we recommend choosing Diwan Firm Because it is considered the ideal choice in that specialty, and it carries out all the work of establishing companies with all skill, because it has many legal experts who deal with complete honesty and transparency and are keen to meet the needs of clients and satisfy them.
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