Costs of establishing a company in Egypt

The costs of establishing a company in Egypt are considered one of the important elements that must be taken into consideration when starting to establish any new company, and those wishing to establish a company in Egypt must carefully consider all the costs associated with that, which include the costs of licenses, taxes, and necessary legal procedures, which vary from One type of company to another, and it varies according to the amount of capital that is invested Diwan office He handles all establishment work for various companies and helps his clients meet all requirements efficiently and professionally.

Costs of establishing a company in Egypt

If you are thinking of establishing a company, you must first understand the costs of establishing a company in Egypt, which vary and differ according to the type of company you wish to establish and the amount of capital you will invest. These costs include the following:

• Registration and licensing costs.
• Taxes.
• Administrative fees.
•  Employee salaries.
• Rental, operating and other costs. 

See also: Establishing companies in Egypt

Estimating the expenses necessary to establish a company in Egypt

Calculating the costs of establishing a company in Egypt must include several elements, which are considered the basic expenses and must be taken into consideration, including the following:

•  Registration and license costs: These costs include fees for establishing the company and registering it in the commercial registry, in addition to the cost of obtaining the necessary licenses and permits.
• Lawyer Costs: You may need to hire a lawyer to help you prepare the necessary documents and complete the legal procedures.
• Necessary capital: The capital necessary to establish and operate the company must be determined, in addition to preparing a detailed financial plan.
• Office costs and insurances: Office rental costs and employee insurances must be taken into consideration.
• Marketing and advertising costs: You may need to allocate a budget to market and advertise the company and attract customers.
• Staff costs: You must account for the costs of hiring and training employees, in addition to salary and incentive costs. 

Legal costs for establishing a company in Egypt

The costs of establishing a company in Egypt include several different aspects, and we will explain the most important basic legal expenses that can be expected below:

Company registration fees: These fees include the costs of registering the company with the relevant government authorities, such as the commercial registry, taxes, social insurance, taxes, and others.

Lawyer fees: You may need to hire a lawyer to help you prepare the necessary legal documents and follow up on company establishment procedures.

Core Capital: The core capital of the company must be determined and transferred to the company account.

Establishment fees: These fees include evaluation reports, audit reports, and other necessary documents and procedures.

Legal consultation costs: You may need to consult a lawyer or legal advisor to guide you through the company formation process and ensure compliance with local legislation and laws.

Important note: This list is not comprehensive, but rather refers to the general legal costs that must be taken into account when establishing a company in Egypt. Therefore, it is necessary to inquire with a legal expert or a local lawyer before embarking on the procedures for establishing the company.

Government fees related to establishing a company in Egypt

The costs of establishing a company in Egypt include paying some government fees, and these fees may change based on the type of company you wish to establish and the capital invested in it. Here are some common government fees you may encounter when starting a company:

•  Company establishment fees: These fees include fees related to submitting an application to establish the company and issuing its legal documents.
• Registration fees: You need to pay a fee to register the company in the commercial registry and obtain an activity license.
• Value Added Tax (VAT): You must register the company for VAT and pay prescribed fees based on revenue.
• Company visa fees: If you have foreign employees or need your company to be sponsored by a foreign company that specializes in administrative sponsorship, you will need to pay a company visa fee. 

Read also: Everything related to services for establishing individual companies

Costs of legal and accounting consultations for establishing the company in Egypt

The costs of legal and accounting consultations for establishing a company in Egypt vary according to the type and size of the company, but there are some general points that can help you estimate the costs necessary for these services. We will mention them below:

• Legal consultations: The legal costs associated with establishing a company can include assistance in choosing the appropriate type of company, drafting the necessary contracts and agreements, registering in the commercial registry and completing all required legal procedures.
• Accounting consultations: Accounting consultation costs can include determining the company's financial structure, preparing the necessary financial reports, assistance in choosing the appropriate accounting system, and adhering to the accounting controls and regulations in force in Egypt.
• Company fees: include payment of registration and licensing fees to establish and operate the company in Egypt. These fees vary according to the type of company and the invested capital. It is preferable to speak with legal and accounting consulting offices in Egypt to obtain a specific estimate of the costs of establishing your company.
• Other costs: such as the costs of legal advertisements, necessary insurances, etc.

Important note: The costs of these consultations may vary depending on the level of specialization and experience of the lawyer or legal advisor. 

How to calculate expected taxes for your startup company in Egypt

If you run a startup in Egypt and want to calculate the expected taxes you must pay, you should follow these steps:

•  Determine the type of taxes: You first need to know what types of taxes your company is subject to. Taxes in Egypt usually include corporate income tax and value added tax.
• Determine Revenue: You must calculate the total revenue your company generated during the fiscal year.
• Determine costs: You must calculate all the costs and expenses that your company paid during the fiscal year, including production and operating costs, salaries, wages, rent, debts, etc.
• Calculating Net Profit: After calculating revenues and costs, you must calculate your company's net profit.
• Calculating taxes: After calculating the net profit, you can calculate the taxes due according to the tax systems in force in Egypt.
• Submitting a tax return: After calculating the taxes owed, you must submit the necessary tax returns and pay the amounts due on the specified dates.

The impact of tax laws on the costs of establishing a company in Egypt

The impact of tax laws is considered a decisive factor when looking at the costs of establishing a company in Egypt. Here are some points that you must know about taxes when starting to establish a company in Egypt, which include the following:

• Corporate Tax: Companies in Egypt are subject to a 22.5% corporate tax on profits. Founders must estimate tax costs and their impact on the future profitability of the company.
• Value Added Tax (VAT): A 14% VAT is charged on goods and services sold within Egypt. Founders must consider the impact of paying VAT on project costs.
• Personal income tax: Individuals working in the company are subject to personal income tax at different rates depending on income. This tax must be taken into account when determining salaries and benefits for employees.
• Foreign Investments: There can be tax concessions for foreign investments in Egypt that can affect establishment and operating costs.
• Since tax laws may change regularly, founders should familiarize themselves with local tax updates and consult with a local accountant or tax advisor to plan effectively and minimize tax costs as much as possible.

Studying the costs of establishing a company in Egypt and developing a solid business plan can help you make the right decision, and we advise you to benefit from the specialized financial and legal advice that it provides. Diwan office To avoid potential problems and ensure the success of your business.