Fees for establishing an individual company in Egypt

 Fees for establishing a sole proprietorship in Egypt vary in value depending on the capital that is invested. Sole proprietorships are one of the forms of simple commercial and investment businesses, and are widely spread, because their owner is one person and most often he is the owner of the capital, and he is also Who is in charge of management? Therefore, the procedures for establishing it are easier and do not require a lot of legal papers and requirements. The administrative and financial responsibility for it falls on this person, and his financial liability is inseparable from the company’s liability.

 Fees for establishing an individual company in Egypt

 After previously clarifying the steps for establishing a sole proprietorship in Egypt, it is our turn to mention the fees required for establishment services, in accordance with the provisions of Investment Law No. 72 of 2017, which are as follows:

• Fees for the General Investment Authority’s services are about 205 Egyptian pounds, if the capital is 100 thousand pounds or less, while if the capital is greater than that, the fees increase to 505 Egyptian pounds.
• The establishment establishment letter fee is 305 Egyptian pounds.
• An annual subscription to the General Federation of Chambers of Commerce is 2 per thousand of the total amount of paid-up capital, taking into account that the minimum is 129 pounds while the maximum is 2,105 pounds.
• The registration fee in the commercial registry is 64 Egyptian pounds.
• There are other fees that are paid to the General Authority for Export and Import Control, and these are paid if the company’s activity is real estate, or it specializes in advertising, and their value is about 2,835 Egyptian pounds.

See also: The most important steps for establishing an import and export company

Papers necessary to establish a sole proprietorship

After knowing the fees for establishing a sole proprietorship in Egypt, it is our turn to clarify the most important official documents that must be prepared to carry out the establishment procedures legally, including the following:

• A scanned copy of the power of attorney made to Lawyer establishing a company in Egypt Or the legal expert to carry out the incorporation procedures instead of the company owner.
• A copy of the ID card of the company owner, which must be within its validity period, along with bringing the original so that it can be seen and reviewed.
• The foreign investor must bring his own identification form, in addition to a scanned copy of that form on a hard disk (CD).
• A copy of the foreign investor’s passport, along with bringing the original to verify its authenticity and review it.
• A report extracted by an expert detailing the in-kind shares.
• Approvals and permits obtained from agencies if the nature of the activity requires prior approvals.

Requirements for establishing a sole proprietorship company in Egypt

Requirements for establishing a sole proprietorship company in Egypt requires adherence to a set of procedures and laws established by the General Authority for Investment, which aim to organize the process of establishing companies and provide the necessary facilities to investors. If you are wondering about the cost of establishing a company in Egypt or how much a commercial registry costs, you should know that there are Basic steps that must be followed to reach your goal. These steps are explained below:

• First, you must choose the “company name” you wish to establish so that it is unique and not similar to the names of other companies, in order to ensure that there are no confusions in the future.
• After completing this step, you need to go to the “Investor Services Center” of the General Investment Authority to complete the “procedures for establishing a sole proprietorship.”
• Then comes learning the details of the “company establishment service,” which depends largely on submitting all the required documents, such as a copy of the founder’s ID card and any special permits that may be necessary for the company’s activity.
• Fees for establishing a sole proprietorship in Egypt are considered one of the most important aspects that must be taken into consideration when starting the process of establishing a sole proprietorship in Egypt. These fees include a set of costs, including registration fees in the commercial registry and publication fees in the Official Gazette.
• As for how to complete the establishment process, you must determine the “capital” to be invested in the company, which does not need to be large to start a small project.
• Finally, after completing all documents and fees and carrying out the basic procedures, the final license is obtained from the General Authority for Investment, which enables the investor to officially start his business.

The difference between a sole proprietorship and a joint stock company in Egypt

When thinking about establishing a commercial entity in Egypt, it is preferable to learn about the difference between a sole proprietorship and a joint-stock company. By learning about a sole proprietorship company, it is considered one owned by one person only, and this person is fully responsible for all the financial and legal obligations of the company. Also, the fees for establishing a sole proprietorship are In Egypt, it is considered reasonable compared to other forms of commercial entities and projects, as establishment fees range from 800 to 1,000 Egyptian pounds. As for the commercial registry, it costs about 56 Egyptian pounds annually.

On the other hand, a joint-stock company requires greater capital and less specific financial and social responsibility on shareholders. It requires a capital of no less than 250,000 Egyptian pounds to establish a joint-stock company. On the other hand, shareholders’ responsibility is limited to the amount of their contribution to the capital, which provides... Greater legal protection for them.

Advantages of establishing an individual company

It is not possible to talk about the fees for establishing an individual company in Egypt without clarifying the advantages of this type of company and why it is considered the most in demand, for the following reasons:

• FlexibilityThe most important advantage of individual companies is that they do not require a specific capital and allow their owner to deal with all flexibility in determining the capital, in addition to flexibility in the procedures for liquidating companies as there are no penalty conditions.
• Ease of proceduresSole proprietorships are easier to establish than other types of companies, because they usually do not have any legal disputes, and their owner only needs a real estate record.
• TeamThe work team in individual companies is often small and limited in number, and therefore it is easy to form the appropriate team and work on its management and follow-up.
• Easily define permissionsThe activity of individual companies is limited and therefore it is easy to distribute tasks and powers to their employees with ease. This makes the decision-making process simple and does not take many meetings and discussions.
• Change activityThe individual company owner can make any changes in his business activity at the time he wants without any problems or restrictions on him.
• Freedom of creativityThe company owner can implement the creative vision he sees without any restrictions from others, and then he can implement his ideas with ease.
• Enjoy privacyAn individual company, unlike other types of companies, can refrain from disclosing any gains or losses that it may be exposed to, and this gives its owner privacy and maintains the confidentiality of the work.

Read also: The difference between a limited liability company and a one person company

Disadvantages of establishing an individual company

The idea of establishing a sole proprietorship in Egypt is an attractive option for many individuals who wish to start their own business. However, there are some disadvantages that must be taken into consideration before making this decision, and the most prominent disadvantages of establishing a sole proprietorship are as follows:

• The financial burden that the company owner must bear, as the fees for establishing a sole proprietorship in Egypt are relatively high and may include the costs of the commercial registry and licensing costs necessary to establish the company. These fees can be a large financial burden on the sole proprietor of the company, especially if the capital available to him is Limited.
• Sole proprietorships are considered less stable compared to other types of companies, such as joint-stock companies or limited liability companies, as the owner of the sole proprietorship is exposed to bearing all legal and financial responsibilities on his personal shoulders, which may lead to a greater risk in the event of commercial failure or exposure to any legal problems. In the event In limited liability companies, there is a limit on the financial responsibility of partners that is proportional to their contribution to the capital, which provides a greater level of security and stability, so joint stock companies and limited liability companies are considered more attractive to potential investors and partners.
• The sole proprietor of a company finds it difficult to attract additional investments or enter into other partnerships because the legal structures of joint-stock companies and limited liability companies provide greater protection for investors.
• Ultimately, anyone considering starting a sole proprietorship should carefully consider these various aspects and evaluate whether the expected benefits outweigh the potential drawbacks before making a final decision.

Taxes and legal procedures for individual companies in Egypt

The individual company or “one person company” is a modern model in the business world, as it allows the individual investor to own an independent company with limited liability, but in Egypt, there are many taxes and legal procedures that individual companies must adhere to, so I will give you an overview. On some important taxes and legal procedures related to individual companies in Egypt:

First: taxes

1. Value-added tax: Value-added tax is imposed on the goods and services provided by the individual company and is paid at a specific percentage.
2. Income tax: It is imposed on the profits made by the individual company, and it must submit an annual tax return.
3. Dividend distribution tax: If dividends are distributed to shareholders, there may be a tax on these distributions.

Second: Registration and licenses

The individual company must register in the commercial registry and obtain the necessary licenses to practice its activity. In addition, the company is subject to special conditions related to the type of activity it carries out.

Third: Employment and social security obligations

The sole proprietorship must comply with the provisions of the Labor Law regarding the rights and duties of employees, and the sole proprietorship must register its employees in the social security system.

Fourth: Financial reporting

The sole proprietorship must submit annual and financial reports to the competent authorities and the sole proprietorship must comply with approved accounting standards and laws.

How to grow and expand an individual company in Egypt

To develop and expand your individual company, you must think of several strategies. You can use digital marketing methods to reach a wider audience through social media and websites. In addition, you must consider opportunities for geographical expansion and opening new branches in other cities, which contributes to increasing the spread of Your brand. Continuous development and starting to create partnerships with other companies and suppliers is an effective step in developing your own company. You can also benefit from small project support and financing programs provided by the Egyptian government or private organizations that provide low-interest financing or even financial grants to expand your business. Moreover, you can organize internal operations, employ competencies, and improve time and resource management, which contributes to improving the efficiency of your company and enhances its growth and sustainability. By implementing all these steps and tips effectively, you can achieve success and expand your individual company in the promising Egyptian market.

 Diwan Company services for company establishment clients

 The last thing we clarify in our talk about the fees for establishing an individual company in Egypt is the services it provides Diwan Firm For clients wishing to establish a sole proprietorship, including the following:

• Providing legal and tax consulting services through a group of the best legal experts and specialized consultants.
• Carrying out all establishment work through a legal agent who represents the company owner before official and governmental authorities.
• Speed in obtaining the necessary papers and licenses to practice commercial activity.
• Preparing contracts in a legal form to facilitate dealing with other parties.
• Drafting lease contracts, sales contracts, or any other contracts related to establishing the company.
• The legal agent represents the company before official bodies such as social insurance offices or labor offices.
• Obtaining licenses and approvals for operation from the relevant authorities in order to begin practicing the commercial activity.

In conclusion, we have clarified the fees for establishing a sole proprietorship company in Egypt and the most important services it provides Diwan Firm To its clients upon establishment, it is worth noting that the company’s work is not limited to that only, but rather it provides other services, such as tax services, financial and accounting consulting services, as well as auditing and intellectual property services, foreigners’ residence permits, and others, as we must say. The process of establishing a sole proprietorship is not a complicated task if the steps are followed carefully, as this makes it easier for you to enter the Egyptian market and makes you qualified to benefit from the available economic opportunities.

Sources:

www.usemultiplier.com

youssrysaleh.com

egypt/sole-proprietorship