THE ART OF BEING LOCAL
What services are provided?
InterGest Egypt was founded in April 2022 by the managing partners of AIMS International Egypt, to help clients with market entry services and administrative support. Egypt has been placed as one of the top 3 investment destinations on the African continent and serves as a gateway to Africa. It has tremendous potential as a developing nation attracting much needed services and transformation projects backed by the government with new laws and regulations designed to enable easier and smoother process for foreign investment. Industries such as payment solutions, financial technologies but also healthcare and infrastructure, which are also top investment areas, gained immense popularity.
Zeinab Noureldin is the Managing Partner of InterGest Egypt. Zeinab holds a wide range of experience holding different positions in the Human Resources and Talent Management field serving many clients in a range of Industries such as manufacturing, real estate and FMCG and technology sector. Zeinab is also a Partner at AIMS International Egypt heading the operations of the business since 2020. Zeinab studied Mass Communication and speaks fluent Arabic and English.
As the Managing Partner of InterGest Egypt, Pauline D‘Arcy holds a rich experience in Financial services, previously heading the executive search department for one of the big 4 firms in Egypt. Moving on afterward to head her own company in Staffing and Recruiting services and finally setting up AIMS International Egypt as Managing Director. Pauline has international experience in the UK, Egypt, France, and speaks all 3 languages fluently.
Company formation in Egypt
Company formation in Egypt offers attractive opportunities for entrepreneurs and investors. Egypt has established itself as a dynamic business location in the Middle East. With the megacity of Cairo as its capital, the country attracts with a growing domestic market size, a strategic location and a variety of industries that are attractive to investors. These industries include tourism, construction, energy, healthcare, financial, information and communication technology, and agriculture. The Egyptian government has taken initiatives to strengthen the private sector and attract foreign investment. These efforts have helped create a more favourable business climate. With sound preparation, professional advice and local knowledge, setting up a business in Egypt has a good chance of success. Companies that recognise Egypt as an important investment destination and see the country as a gateway to Africa can seek advice on all administrative matters from InterGest Egypt before entering the market.
What are the advantages of setting up a company in Egypt
Companies looking to establish a company or branch in Egypt will find a growing business environment here. The government has introduced reforms to facilitate the start-up process and various industries offer promising investment opportunities. Other advantages include:
- Growth potential: Egypt has a growing population of over 100 million people, giving it a large domestic market. The country is experiencing solid economic growth and is becoming an important regional economic centre.
- Strategic location: Egypt is geographically conveniently located between Africa, the Middle East and Europe. The country serves as an important trade hub and provides access to various markets and trade routes.
- Attractive investment climate: The Egyptian government took various measures to facilitate investment and attract foreign companies. These include the introduction of economic zones with tax incentives, the simplification of setting up businesses and the promotion of the private sector.
- Industry diversity: Egypt offers a wide range of industries that are attractive to investors. Depending on the industry, specific support programmes and incentives can be taken advantage of.
- Labour potential: With its large population, Egypt has fundamental potential in the selection of labour. Labour costs are competitive compared to other countries in the region.
- Infrastructure: Egypt has made efforts to improve its infrastructure in recent years. The country has modern transport routes, ports, airports and communication networks to support business operations.
- Trade agreements: Egypt has trade agreements with various countries, including the European Union. These agreements provide better market access for businesses and facilitate trade with different markets.
- Support for the private sector: The Egyptian government introduced programmes and initiatives to encourage business start-ups. This includes support for business development and the promotion of innovation.
Developments and initiatives in Egypt are improving market entry for companies looking to invest locally. InterGest Egypt shows you the right ways to set up a company in Egypt, from company formation and administration to staff recruitment and management to support in setting up sales.
Challenges of setting up a company in Egypt
However, there are also challenges when setting up a company in Egypt. These include bureaucratic processes and cultural differences:
- Bureaucratic processes: Although the Egyptian government has taken steps to simplify the start-up process, bureaucracy is still pervasive. Complying with legal requirements and going through the necessary approval procedures are usually time-consuming and hold up entrepreneurial processes.
- Legal complexity: The Egyptian legal system is complicated, especially for foreign investors. It is important to understand the legal rules and regulations to ensure smooth company formation and business operations.
- Corruption: Corruption continues to be a challenge in Egypt. It is advisable to be aware of the applicable anti-corruption laws and to take compliance measures to minimise potential risks.
- Financing: Although Egypt has made efforts to improve financing options for businesses, finding adequate sources of funding is still a challenge. Especially for start-ups and small businesses, access to capital can be limited.
- Skilled labour shortage: Although Egypt has a large labour base, there can be difficulties in finding qualified professionals with the required skills. Depending on the sector and the job, it has to be taken into account that investments have to be made in the training of employees.
- Cultural differences: Egypt has its own business culture and way of working that is different from other countries. It is important to understand local business practices and historical etiquette in order to build successful relationships with business partners and clients.
- Competition: Depending on the industry, competition in Egypt is challenging. It is important to develop a differentiated business strategy and focus on market research and positioning to stand out from the competition.
Despite these challenges, Egypt offers attractive opportunities for entrepreneurs and investors. With thorough preparation, professional advice and local support, many of these challenges can be successfully overcome. InterGest Egypt offers you the necessary basics to trade successfully in the Egyptian market.
What should I bear in mind when setting up a company in Egypt?
To start a business in Egypt, there are a few steps to follow. First, one should choose the type of business structure, be it sole proprietorship, partnership or limited liability company. Then, one needs to register the company name and obtain a permit from the Egyptian authorities.
The incorporation process in Egypt has been simplified and accelerated in recent years to attract investors. The Egyptian government has introduced reforms to reduce bureaucracy and increase efficiency in setting up a business. Nevertheless, it is advisable to seek professional assistance from local lawyers or business consultants to properly comply with legal requirements and procedures.
Another important aspect of setting up a company in Egypt is tax compliance. It is crucial to understand the tax obligations and make the necessary registrations. However, Egypt also offers tax incentives and concessions for certain investment projects in special economic zones.
It is important to also consider cultural differences and business practices when setting up a company in Egypt. Thorough market research and knowledge of local business etiquette are advantageous to operate successfully in Egypt. InterGest Egypt accompanies export-oriented companies and supports them in all important service areas when setting up, designing and managing their own company or branch.
Egypt has made considerable efforts in recent years to optimise the legal framework for investment:
- Investment Law: Egypt passed a new investment law that aims to protect and promote investment in the country. The law offers foreign investors, for example, protection against expropriation, equal treatment with domestic investors and the possibility of repatriation of profits.
- Economic zones: Egypt relies on several economic zones, including free trade zones, industrial zones and technology parks. These zones offer companies tax incentives, infrastructure support and simplified administrative procedures.
- Trade agreements: Egypt concluded various bilateral and multilateral trade agreements in recent years, including with the European Union. These agreements provide facilitated market access for businesses and create favourable conditions for trade.
- Protection of intellectual property: To strengthen the protection of intellectual property, Egypt relies on specific laws and regulations to protect patents, trademarks, copyrights and other forms of intellectual property.
- Tax incentives: Egypt offers concessions for certain investment projects, especially in the economic zones. These include tax exemptions, reduced tax rates and special VAT regimes.
- Labour laws: Egypt has labour laws and regulations that protect workers' rights and regulate labour relations. It is important to observe the applicable labour laws and comply with labour standards.
- Foreign exchange regulations: Egypt facilitates the transfer of capital, profits and dividends based on various regulations. It is essential to understand the applicable foreign exchange regulations and obtain the necessary permits for the transfer of capital.
Generally, when investing in Egypt, it is advisable to seek professional legal advice in advance in order to understand the specific requirements and regulations and to comply with legal obligations. Based on many years of expertise in legal and tax advice, InterGest Egypt offers you valuable support in navigating the legal framework and business practices in Egypt.
What forms of society exist in Egypt
In Egypt, there are various company forms that can be chosen when setting up a business:
- Sole Proprietorship (OPC): A sole proprietorship is run by a single person who has full ownership and responsibility for the business. It is the simplest and quickest form of business formation, but the owner is personally liable for the debts and obligations of the business.
- Partnership: A partnership is a company formed by two or more people. The partners share the responsibilities, ownership and profits or losses of the business. There are two types of partnership: the general partnership and the limited partnership. In the general partnership, all partners have full liability for the debts of the business, whereas in the limited partnership, some partners have limited liability.
- Limited Liability Company (LLC): An LLC is a popular form of company in Egypt. It offers the advantage of limited liability for the members. Their personal assets are protected in case of debts or obligations of the company. An LLC can be formed by one or more persons acting as members. The minimum capital required to form an LLC is fixed.
- Joint Stock Company (JSC): A joint stock company is a corporation in which the capital is divided into shares. A JSC can be either public (Public Joint Stock Company, PJSC) or private (Private Joint Stock Company, PrJSC). In a PJSC, the shares can be publicly traded, while in a PrJSC the shares can only be held by selected persons.
- Branch: A foreign company can open a branch in Egypt to conduct business in the country. The branch is not a separate legal entity, but an extension of the foreign company. It is subject to the laws and regulations of Egypt.
The choice of company form should take into account the specific requirements of the business and the individual needs of the founders. Expert support is important to determine the appropriate company form and to take the necessary steps to establish the company in Egypt. This know-how is offered by InterGest Egypt.
The government in Egypt has introduced reforms to facilitate the company formation process and various industries offer promising investment opportunities. InterGest Egypt is the right partner for professional entry into the Egyptian market. We want to learn more about your plans in Egypt and bring our experience in the administrative field. This includes competencies in bookkeeping and accounting, import/export and administrative work, managerial accounting, controlling, cross-border and consolidated reporting, cash and credit management, payroll, VAT management, statistical reporting of goods, Intrastat, invoicing, dunning and debt collection.