Egypt is fast growing economy, whose GDP, according to the World Bank, rose from US$235 Billion in 2017 to US$303 Billion in 2019; creating haven of business opportunities for those desiring to start a business there. Starting a business in Egypt requires following several steps set by the General Authority for Investment (GAFI).
First, you need to submit a letter of intent to GAFI. This document is a company’s application to start operating in the country and is submitted for approval. It’s only available in Arabic and must contain basic information about the company’s activities, its line-up of shareholders, and its estimated capital investment.
Second, you need to register your business with the Ministry of Trade and Industry (MITI). The registration is achieved via submission of a form that contains the following information:
The registration form is available only in Arabic and can be completed online. Following this step, MITI will issue a trade license for the company.
If you wish to proceed with opening a business in Egypt, you will need a trade license issued by MITI. However, this license is not mandatory for all companies. Only companies that are legally allowed to run a business in the country (i.e., companies that possess a current license issued by GAFI) are able to obtain MITI’s trade license.
The amount of investment required for starting a company is at least EGP 200,000 or the equivalent in foreign currency. To open a company, you will need a Commercial Registration Number (CRN) issued by GAFI. This number can be obtained for the nominal fee of EGP 50.
The process of opening a company is significantly simplified in Egypt compared to other countries where starting a business is not as straightforward. In Egypt, the government provides you with all the necessary documentation, so there are no filings to make, no licenses to obtain or no permits required.
In order to complete your business setup in Egypt, you need to open bank accounts for your business. This process can take several weeks or even months due to strict anti-money laundering and terrorism financing rules that are imposed by the central bank.
Opportunities in Egypt for investment by locals and foreigners include industries such as Agriculture and Land Reclamation, Automotive, Building Materials industries, Construction and Civil Engineering, Chemical Industries, Communications and Information Technology (ICT), Education, Electricity and Renewable Energy, Engineering and Electronics Industries, Financial and Insurance Services, Food Processing, Healthcare, Leather Industries, Metallurgical industries, Manufacturing of Metals, Mining and Mineral Resource Exploration, Oil and Gas Petroleum and Mineral Resources, Packing & Packaging, Petrochemicals, Pharmaceutical and Medical Industries, Real Estate, Retail, Textile, Tourism, Transportation and Logistics, and Wood and Furniture.
Opportunities in Egypt for investment by locals and foreigners include industries such as Agriculture and Land Reclamation, Automotive, Building Materials industries, Construction and Civil Engineering, Chemical Industries, Communications and Information Technology (ICT), Education, Electricity and Renewable Energy, Engineering and Electronics Industries, Financial and Insurance Services, Food Processing, Healthcare, Leather Industries, Metallurgical industries, Manufacturing of Metals, Mining and Mineral Resource Exploration, Oil and Gas Petroleum and Mineral Resources, Packing & Packaging, Petrochemicals, Pharmaceutical and Medical Industries, Real Estate, Retail, Textile, Tourism, Transportation and Logistics, and Wood and Furniture.
These industries are supported by the Egyptian Government’s Strategic Plan for Economic Development (SPED), which identifies the following as priorities:
Egyptian citizens are allowed to work in other countries, but must have a residence permit to enter the country. For Muslims, a residence permit is required and depends on their occupation. The length of stay in Egypt is one year for every year of service. There is only one type of residence permit available for foreign workers and expatriates in Egypt—the “A visa”. This is a single-entry type of visa. The A visa allows the holder to enter and leave the country for business, tourism, medical treatment, and other reasons.
An A visa allows one to work in any company in Egypt for up to one year. There is no limit on the number of times an A visa can be renewed or extended. An A visa holder who has received a permit from the Ministry of Interior may work or study more than one job at a single location during a single trip to Egypt.
Whilst completing business start-up formalities, you need to get good office space, in convenient locations depending on the nature of business. It’s not difficult to rent office space in Cairo, there are several options for the various budgets. More expensive office space may be found in modern buildings, close to transport facilities which can help save money.
Workers who live in Egypt may apply for a residence visa that allows them to live and work indefinitely in Egypt. An Egyptian residence visa can be renewed repeatedly as long as the employee’s employer does not change at each renewal of the residence visa.
Recruitment is the next step for your business, as employing locally in Egypt has more benefits for a foreign investor. It’s possible to leverage the language and the culture. The Egyptian people speak English, French and Arabic.
There are about 20,000 certified companies in Egypt. Some of these firms have been established for more than 65 years and employ more than 100,000 people. There are also 16000 companies with a size of 10-50 employees.
Egypt is one of the main markets & gateway for many businesses in Africa, Middle East region & Europe these days. Learning the culture and work ethics of Egyptians will go a long way in understanding how to do business in Egypt.
Marketing and Advertising in Egypt is done differently, and knowing where and how to advertise is very important. Make sure your Marketing Manager and your Advertising Agency fully understand your business, services, and products, and how to navigate the Egyptian consumer terrain.
Source: GAFI