Establishing a limited liability company (LLC) in Egypt is a common practice for many entrepreneurs due to the flexibility that this type of company provides in determining financial responsibility. Although establishing these companies seems like a simple process, it requires accurate knowledge of the costs associated with them to ensure the sustainability of the business project. In this article, we will discuss in detail the cost of establishing a limited liability company in Egypt and how to determine the appropriate budget, while highlighting the most important factors that affect these costs.
Cost of establishing a limited liability company in Egypt
The cost of establishing a limited liability company (LLC) in Egypt depends on several factors, but in general, the basic costs that you may face during the establishment process can be summarized in the following points:
Commercial registration fees
The cost of registration in the commercial register ranges from approximately 500 to 1000 Egyptian pounds, depending on the type of company and the size of the capital.
Real Estate Registry Contract Documentation Fees
The establishment contract requires documentation at the real estate registry, and the cost of documentation ranges between 500 and 1500 Egyptian pounds, depending on the number of partners and the components of the contract.
Find out more details about: The most important steps to establish a limited liability company in Egypt.
Initial capital
Limited liability companies do not require a specific minimum capital in some cases, but it is preferable to have an appropriate initial capital for your business.
Typically, limited liability companies can be established with a capital starting from 1 EGP, but in practice it is preferable to allocate a capital ranging from 5,000 to 10,000 EGP at the beginning.
Attorney's fees
Establishing a limited liability company usually requires the assistance of a specialized lawyer to prepare the articles of association and complete the legal procedures. The lawyer’s fees vary depending on the experience and size of the company.
Bank account opening fees
To open a bank account in the company's name, you will need to pay fees starting from 100 EGP, and some banks may require a minimum deposit when opening the account, which usually ranges from 1,000 to 5,000 EGP.
We advise you to learn more about: The difference between limited liability companies and joint stock companies.
Taxes and other fees
Company registration fees with the Tax Authority (it may be approximately 200 to 500 Egyptian pounds), but you may need to pay other fees if the company needs additional licenses depending on the type of activity (such as licenses from the Ministry of Health, Environment or Industry), and these fees vary according to the nature of the activity.
Social and health insurance
If you have employees, you must pay social insurance contributions, which are paid monthly, and insurance fees range from 100 to 300 pounds per month for each employee, depending on the monthly salary.
Cost of establishing a limited liability company in Egypt
The role of the Diwan office in reducing the costs of establishing companies
Diwan Office is a suitable choice if you want to establish a limited liability company in Egypt with ease and convenience. Here are the most prominent advantages that the office offers to its clients:
Diwan Office works with a team of specialized lawyers who have extensive experience in company formation laws in Egypt, which guarantees you the right guidance in every step of establishing your company.
Through Diwan's integrated services, clients can save time and money in company establishment procedures, thanks to the in-depth knowledge of legal and tax procedures, and the ability to provide innovative solutions that help reduce costs.
Fast legal procedures: The office ensures the acceleration of the establishment process, through direct interaction with government agencies, which reduces the time required to complete legal and administrative procedures.
The role of Diwan Office is not limited to merely establishing the company, but extends to providing comprehensive legal consultations that guarantee your compliance with all Egyptian laws, and avoid legal risks that may arise after establishment.
The office provides comprehensive services after establishment. Once your company is established, Diwan Office continues to provide legal and commercial support, through continuous consultations in the field of corporate law, contracts, and any legal amendments that may affect your company.
Diwan Office cares about each client individually and provides them with solutions that suit their type of work and commercial goals, making them the ideal partner in your company establishment journey.
By dealing with Diwan Office, you ensure that your company is successfully established at the lowest possible costs, in addition to providing peace of mind through continuous legal support.
You can learn about: Learn about the most important company establishment services.
What are the hidden expenses when establishing a company in Egypt?
When calculating the cost of establishing a limited liability company in Egypt, it must be taken into account that there are some hidden expenses that can accumulate and affect the overall budget, which many people may overlook, such as the following:
Unexpected fees may appear during the registration process at the Commercial Registry or at the Real Estate Registry, such as costs for obtaining additional documents or submitting requests to correct errors in paperwork.
Additional license fees Because in some cases, a company may need additional licenses to practice a certain activity, which may not be clear from the beginning.
Costs of amending documents or contracts for which additional fees are paid when requesting any amendments or updates from the commercial register.
If you make changes to partners or directors or add or remove anyone from the list of members, you will incur additional costs to document these changes in the official records.
Bank transfer fees are charged when making any money transfers between company accounts or when paying suppliers, and this cost can increase if the transfers are international.
Costs associated with initial marketing and advertising, such as the cost of designing a logo, visual identity, and legally documenting it, as well as marketing and advertising campaign expenses.
Costs related to the place or facilities such as office rent, insurance for the place, or air conditioning and lighting costs, in addition to the cost of decorations and furniture.
Local fees imposed in some cities or provinces on business activities, such as waste fees or road fees, are expenses that may be unexpected when starting out.
Logistics and distribution fees as well as product storage costs.
Frequently Asked Questions
Here are the most frequently asked questions about the cost of establishing a limited liability company in Egypt, along with the answers:
Is there a minimum capital requirement when starting a business?
Egyptian law does not require a minimum capital when establishing a limited liability company, however it is advisable to allocate capital that is commensurate with the size and nature of the business activity to avoid any financial problems in the future.
Can I change the company type after incorporation?
Yes, it is possible to change the type of company after incorporation, but this requires amendments to the articles of association and submitting an application to the competent authorities, and this change may entail additional fees.
How long does it take to establish a limited liability company in Egypt?
Establishing a limited liability company in Egypt usually takes approximately 7 to 14 days, depending on the speed of the procedures and documents required, such as notarization at the real estate registry, obtaining the commercial register, and registration with the tax authority.
In conclusion, we recommend that you have a comprehensive estimate of all costs associated with the cost of establishing a limited liability company in Egypt before starting the project, because although the basic costs are clear, there are many invisible fees that can appear during the establishment, so it is advisable to plan ahead and allocate a flexible budget because this will help you manage these expenses effectively, and do not forget to seek the help of a specialized lawyer because this way you can establish your company at the lowest possible cost while ensuring full compliance with local laws.
