The costs of establishing a company in Egypt are an important step towards building a successful business project. However, the process of establishing requires careful planning and a comprehensive understanding of the costs associated with it. Whether you are planning to establish a small or large company, you must have knowledge of the costs associated with registering the company, obtaining licenses, paying legal fees, and choosing the most appropriate structure for the project.
In this article, we will review the most important expenses that you may face while establishing your company in Egypt, in addition to some tips that may help you reduce these costs and make the most of the allocated budget. It is best to leave this matter to a law firm specialized in company establishment work, such as Diwan Office, to ensure the success of the establishment process.
What are the costs of establishing a company?
Establishing a company in Egypt requires paying a set of costs that vary based on the type of company, its size, and the type of services you need. Below is a comprehensive look at the costs you may face when establishing a company in Egypt:
Government and administrative fees
- Commercial registration fees vary depending on the type of company and the size of the capital.
- Notarization fees: The articles of association must be notarized in the real estate registry, and costs vary depending on the number of partners and capital.
- Tax fees are paid upon registration with the Tax Authority, and in some cases, there may be tax exemptions or reductions, especially for small projects or those located in special economic zones.
- Licensing fees depend on the type of activity, as some commercial activities may require additional licenses from the relevant authorities such as the Ministry of Industry, Health or Environment, and these licenses require the payment of fees.
- Intellectual property protection fees are paid if you intend to register a trademark or patent.
Find out more details about: Cost of establishing a one-person company in Egypt.
Initial capital
The capital required varies depending on the type of company. For example, limited liability companies (LLCs) may require a minimum amount of capital, while joint stock companies may require a larger amount of capital.
The capital must be deposited in a local bank, and some banks usually charge fees for the account opening and capital deposit procedures, and all of these steps can be done by specialists in Diwan office Implement and do it within a short period of time.
Legal costs
There are lawyer fees because it is necessary to hire a lawyer specialized in establishing companies to help you draft the articles of association and internal regulations and follow the legal procedures correctly. These fees change according to the type of service provided and the effort expended to perform it. On the other hand, we recommend the Diwan office, which specializes in company establishment work because its prices are competitive.
Real estate registration fees, such as registration of the articles of association, require payment of fees, which may vary depending on the type of company and the required documents.
Bank fees
Opening a bank account in a company's name requires payment of an account opening fee and sometimes a monthly or annual service fee, depending on the bank.
Administrative and operating costs
Office rent is one of the basic costs because if you need an office or headquarters, you will need to pay a monthly or annual rent.
Salaries and wages are important matters for which a budget must be set in order to pay employees’ salaries in the first stage.
Office supplies and equipment costs, including the purchase of office furniture and equipment such as computers, printers, desks, and other equipment.
We advise you to learn more about: Learn about the fees for establishing a sole proprietorship.
Social and health insurance
Registering for social insurance, as the company must be registered with the National Social Insurance Authority and pay the necessary contributions to cover employees.
Also health insurance because if you have employees, the costs related to health insurance must be paid to those who subscribe to the health insurance system.
Tax related costs
Income Tax: Taxes must be paid on the income generated by the company, and they vary depending on the level of profit and activity.
VAT (if applicable): If you run a business that is subject to VAT, you will have to register the business with the tax authority and pay this tax when you sell goods or provide services.
Other expenses
Advertising and Marketing Costs From logo design to initial marketing campaigns to increase brand awareness, you will need to allocate a budget for these activities.
Legal and financial advice: You may need additional legal and financial advice during the incorporation stages to ensure the company is in compliance with all local laws.
Why should you choose Diwan Office?
Diwan Law Office provides you with distinguished legal services in establishing companies of all kinds, as we are keen to meet your needs by providing specialized legal consultations and easy and flexible establishment procedures.
Whether you are looking to establish an LLC, a joint stock company, or any other type of legal entity, we are here to help you every step of the way.
With our professional team, we work to complete all the required legal papers quickly and accurately, ensuring you have a sound legal start and establish a company capable of success and growth in the market.
Diwan Law Office has a number of features that make it a distinguished choice for company formation and legal services, such as extensive experience and familiarity with local and international laws. The office also continues to support its clients after the establishment of companies and continues to provide legal consultations.
You can learn about: Learn about the best company formation service.
How to Reduce Company Establishment Costs in Egypt: Important Legal Tips
When considering the costs of establishing a company in Egypt, reducing costs is a priority for many entrepreneurs and investors. Here are some legal tips that may help you with that:
- Make sure to choose the type that suits your business size and investment orientation to minimize administrative and legal fees.
- Hiring a qualified attorney can save you time and money in the long run, because it reduces the risks and fees associated with legal errors or delays.
- Using the electronic services available in the business of establishing companies can reduce costs compared to paper transactions or going to government offices.
- Benefit from government programs and support provided to small and medium enterprises.
- Choose a company headquarters in an area with low costs in terms of rent or fees.
- Hiring a chartered accountant helps in better budget planning and more accurate cost calculation.
Frequently Asked Questions
Here are some frequently asked questions about the costs of establishing a company in Egypt and their answers:
Is there a difference in costs based on the type of company?
Yes, costs vary depending on the type of company. For example, establishing a limited liability company (LLC) usually requires less capital than joint stock companies. Also, incorporation and licensing fees may vary depending on the type of company and business activity.
What are the costs associated with licensing?
Licensing fees vary depending on the type of business activity and the location where the company will operate. Some activities require licenses from specific government agencies such as the Ministry of Industry, the Ministry of Health, or the Environment. In this case, the fees for these licenses must be paid upon application.
Is there government support for small projects when establishing a company?
Yes, the Egyptian government offers programs to support small and medium enterprises, including tax breaks, exemptions from some government fees, and financial support through soft loans or incentive programs for emerging projects.
Finally, we must clarify that the costs of establishing a company in Egypt vary depending on the type of company (such as a limited liability company or a joint stock company), the location of the company, and the size of the business, but in general, it can be said that these costs range between 5,000 and 20,000 Egyptian pounds for small and medium-sized projects at the beginning, and these costs include legal fees, government fees, and attorney fees, in addition to any other costs related to the place, equipment, and employees.
