Formation and Restructuring

The legal vehicle you choose to enter Egypt shapes what you can do here, how much liability you carry and how easily you can change course later. Choosing the wrong one, for example a representative office for a business that intends to trade, usually means a costly restructuring after the fact.

Al Majidi Law Firm advises foreign and multinational companies on setting up in Egypt and on restructuring their existing operations. We recommend the right structure, manage registration with the authorities and support you as your business grows or changes.

Our Company Formation and Restructuring Services in Egypt

Choosing the Right Structure for Market Entry

Foreign investors can generally enter Egypt through several routes, depending on their activity and plans:

• Limited liability company (LLC): the most common vehicle for foreign-owned businesses.
• Joint stock company (JSC): suited to larger ventures and those planning to raise capital from the market.
• One-person company: a single-shareholder structure that can be owned by an individual or a company.
• Branch of a foreign company: an extension of the parent rather than a separate legal entity, generally tied to a specific contract or project.
• Representative office: for market research and liaison only, without commercial activity.

We explain the legal, tax and operational consequences of each option and advise on which fits your business. Foreign ownership of up to 100% is generally possible, though some sectors carry restrictions.

Company Incorporation and Registration

We manage the entire incorporation process on your behalf, including:

• Drafting articles of association, shareholder agreements and governance documents.
• Registration with the General Authority for Investment and Free Zones (GAFI), the commercial registry and the tax authorities.
• Preparing, notarising and legalising foreign shareholder documents and powers of attorney.
• Obtaining the licences and approvals your activity requires. See our Corporate and M&A practice for the wider regulatory picture.

Governance and Shareholder Arrangements

• Designing board structures, voting rights and reserved matters that reflect your group’s governance standards.
• Advising on capital structure, share transfers and ownership arrangements.
• Preparing joint venture arrangements with local partners. Acquisitions and merger transactions are covered by our Corporate and M&A practice.

Restructuring Existing Operations

Business needs change, and so must the structure. We advise on:

• Converting a company from one legal form to another, for example ahead of a public offering. See our Capital Market practice.
• Reorganising group structures, transferring shares and changing ownership.
• Debt restructuring and refinancing.
• Winding down, liquidating or exiting an Egyptian entity in compliance with Egyptian law.
• Advising on distressed situations, including insolvency and recovery options.

Ongoing Compliance

After incorporation, your entity must keep its records and filings up to date. We help with:

• Regulatory filings, corporate updates and annual requirements.
• Anti-money laundering (AML), anti-bribery and anti-corruption compliance.
• Employment and work permit compliance for the team you bring in. See our Employment practice.
• Trademark registration for your brand in Egypt. See our Intellectual Property practice.

Why Multinationals Choose Al Majidi for Company Formation in Egypt

• Structure advice before paperwork. We start with your business plan and recommend the vehicle that fits it, rather than defaulting to a standard setup.
• Experience with Egyptian authorities. We work regularly with GAFI, the commercial registry and the tax authorities, and understand what each requires from foreign shareholders.
• One team from entry to exit. Our corporate, employment, IP and disputes lawyers can support you at each stage, from first setup to restructuring and beyond.
• Clear communication with your headquarters. We work in English and coordinate documentation with your group’s legal and finance teams abroad.

Frequently Asked Questions

Can a foreign company own 100% of an Egyptian company?
In most sectors, yes. Foreign investors can generally hold full ownership, although certain activities have restrictions or require special approvals. We confirm the position for your sector at the outset.

What is the best structure for a foreign company entering Egypt?
It depends on your activity and objectives. An LLC is the most common choice for foreign-owned trading and service businesses. A branch is generally tied to a specific contract or project, and a representative office cannot carry out commercial activity. We advise on the right route after understanding your plans.

What is the difference between a branch and a representative office?
A branch is an extension of the foreign parent and can carry out commercial activity within its permitted scope. A representative office is limited to market research, promotion and liaison, and cannot trade or generate revenue in Egypt.

How long does it take to set up a company in Egypt?
It depends on the structure, the sector and how quickly documents are ready. Foreign shareholder documents usually need to be notarised and legalised before they can be filed, so early preparation helps. We give you a realistic timeline once we know the details.

Can an existing company change its legal form in Egypt?
In many cases, yes, subject to the requirements of Egyptian law for the forms involved. This is common before a public offering or when a business outgrows its original structure.

What happens if we need to close our Egyptian entity?
Closing an entity requires a formal process to settle liabilities, deal with employees and contracts, and deregister with the authorities. We manage the process from planning to completion.

Speak to Our Company Formation Team

Planning to enter the Egyptian market or restructure your operations here? Contact Al Majidi Law Firm for a confidential discussion of your plans and the structure we recommend.

Contact Us · info@almajidilaw.com