--- name: kb-corporate-law-eg description: Use when advising on Egyptian corporate law, including SAE (joint stock company) and LLC entity structures, incorporation procedure, foreign ownership rules, the General Authority for Investment and Free Zones (GAFI), Investment Law (Law 72/2017), Capital Market Authority requirements for listed companies, EFSA regulation, and Egyptian Free Zone structures. Relevant for MENA regional investors establishing presence in Egypt, M&A in Egyptian targets, and joint ventures with Egyptian partners. license: MIT metadata: id: kb.corporate-law-EG category: kb practice_area: Corporate Law jurisdictions: [EG] priority: P2 intent: [Egyptian corporate law, SAE, LLC, GAFI, investment law, Egypt, M&A, company formation] related: [kb-corporate-law-uae, kb-corporate-law-lb, kb-competition-law-mena, kb-banking-regulation-cbuae] source: Louis — HAQQ Legal AI (github.com/sboghossian/mini-claude-for-legal) version: "1.0" --- # Knowledge Pack — Egyptian Corporate Law ## Scope This pack covers the principal features of Egyptian corporate law relevant to commercial practice and investment. Egypt is the most populous MENA country and a significant investment destination for Gulf capital and international business. Egyptian corporate law is a French-influenced civil-law system with distinct Investment Law provisions that are critical for foreign investors. --- ## Primary legislation | Statute | Scope | |---|---| | **Companies Law** (Law 159/1981 as amended) | Joint stock companies (SAE) and limited liability companies (LLC); primary corporate statute | | **Investment Law** (Law 72/2017) | Investment incentives, GAFI, free zones, establishment procedures for foreign investment | | **Capital Market Law** (Law 95/1992 as amended) | Listed companies, securities regulation, Capital Market Authority (FRA) | | **Competition Law** (Law 3/2005) | Competition rules affecting corporate structures | | **Commercial Register Law** (Law 34/1976) | Registration requirements | --- ## Entity types ### SAE (Sharikat al-Musahamah al-Masriyya) — Egyptian Joint Stock Company Equivalent of a corporation or public company. Used for larger businesses and listed companies. - Minimum shareholders: **3** - Minimum paid-up capital: **EGP 250,000** (subject to revision) - Management: Board of Directors (minimum 3; maximum 11 members; majority Egyptian nationality for most sectors) - Annual General Meeting required - Accounts must be audited by Egyption certified accountants ### LLC (Sharikat Tawsiyyah Basita) / Limited Liability Company The most common form for SMEs, subsidiaries, and JVs. - Minimum shareholders: **2** (maximum 50) - No minimum capital requirement under general rules (sector-specific minimums may apply) - Management: Manager(s) — need not be shareholders - Simpler governance than SAE ### Partnership forms - **General partnership** (Sharikat Tadamun): unlimited liability; all partners jointly liable - **Limited partnership** (Sharikat Tawsiyyah Basita): general + limited partners --- ## Foreign ownership ### General rule Egypt permits foreign ownership in most sectors. Under the Investment Law 72/2017: - 100% foreign ownership permitted for most activities - GAFI (General Authority for Investment and Free Zones) is the primary one-stop-shop for foreign investment registration ### Restricted sectors - Banking (minimum 51% Egyptian shareholding for certain license types — verify EFSA/CBE rules) - Insurance (Egyptian shareholding requirements) - Media and publishing (Egyptian majority required) - Land and real estate (foreigners may acquire but ownership restrictions apply near border areas + sinai) - Some defense and security-related activities ### Negative list The Investment Law maintains a negative list of activities that require Egyptian majority ownership or are closed to foreign investment. --- ## Investment Law (Law 72/2017) — key features ### GAFI — one-stop-shop **General Authority for Investment and Free Zones (GAFI)** provides: - Single window for company registration - Investment approvals - Operating licenses coordination - Investor dispute resolution (first-instance administrative) ### Investment guarantees The Investment Law provides explicit guarantees to foreign investors: - Equal treatment with Egyptian investors - No expropriation without compensation (fair market value) - Freedom to transfer profits and capital abroad (subject to CBE rules) - Protection from changes in law for 5 years after first production/activity (stabilization-lite) ### Investment incentives - **General incentives**: reduced corporate tax rates for certain periods for new projects - **Special incentives**: higher incentives for projects in industrial zones, less-developed regions (Upper Egypt), national priority sectors - Projects must apply for incentives through GAFI during registration --- ## Incorporation procedure (GAFI fast track) 1. **Pre-approval** — application to GAFI; review of activity against negative list 2. **Company name reservation** — through GAFI or Ministry of Interior 3. **Articles of Association** drafted; notarized if required 4. **Capital deposit** — minimum capital deposited in escrow account with an Egyptian bank 5. **GAFI registration** — GAFI issues investment card and commercial registry extract 6. **Tax registration** — Egyptian Tax Authority 7. **Social insurance registration** — NOSI 8. **Sector-specific licenses** — as required **Timeline**: 1–3 weeks for straightforward setups through GAFI; longer if sector-specific approvals needed. --- ## Egyptian Free Zones Egypt has two types of free zone: | Type | Description | |---|---| | **Public Free Zones** | Administered by GAFI; purpose-built areas (Alexandria, Port Said, Nasr City, etc.) | | **Private Free Zones** | Established by ministerial decree for specific projects; same benefits as public FZs | **Key free zone benefits**: - Exemption from import/export duties and taxes on goods stored or processed in the free zone - Exemption from corporate income tax on free zone activities - No customs inspections for transit goods - Simplified currency and foreign exchange rules --- ## Capital markets — FRA and CMA **Financial Regulatory Authority (FRA)** regulates: - Capital markets (securities and sukuk) - Insurance - Mortgage finance - Leasing - Microfinance For listed companies (SAE listed on EGX — Egyptian Exchange): - CMA authorization required for public offering - Prospectus and continuous disclosure obligations - Corporate governance code compliance - Related party transaction disclosure --- ## Governance features ### SAE governance - Board: 3–11 members; majority must be Egyptian nationals for most sector activities (verify current rules — ongoing reform) - Chairman and CEO roles can be combined or separated - Related party transactions: disclosed and approved by independent directors - Annual audit required ### Minority protection - Egyptian courts recognize oppression remedies for minority shareholders - Articles can provide tag-along and drag-along rights --- ## Annual obligations - Annual general meeting: within 3 months of year-end (SAE); 6 months for LLC - Audited financial statements - Commercial Registry renewal - Tax filings (corporate income tax + VAT + withholding) - GAFI investment report (for investment law entities) --- ## Dispute resolution - Commercial courts have jurisdiction over corporate matters - Cairo Court of Appeal for major issues - Cairo Regional Centre for International Commercial Arbitration (CRCICA) — Egypt's main international arbitration institution - Arbitration clauses enforced under Egyptian Arbitration Law (Law 27/1994) — based on UNCITRAL Model Law - New York Convention: Egypt was one of the original 1958 signatories --- ## How to use this pack Load this pack when the user: - Is advising a MENA or international investor on establishing presence in Egypt - Needs to understand SAE vs LLC for an Egyptian subsidiary or JV - Has questions about Egyptian Investment Law incentives and GAFI procedures - Is structuring an acquisition of an Egyptian target company - Needs to understand free zone structures in Egypt ## Caveats & currency Egyptian corporate law and investment rules are subject to reform. GAFI procedures have been streamlined progressively. Capital thresholds and sectoral restrictions change. Verify current GAFI requirements and Investment Law implementing regulations at gafi.gov.eg. FRA requirements for listed companies are updated regularly. ## Related skills - [[kb-corporate-law-uae]] — UAE corporate law for comparison - [[kb-corporate-law-lb]] — Lebanese corporate law for comparison - [[kb-competition-law-mena]] — Egyptian competition law (ECA) - [[kb-aml-fatf-mena]] — Egyptian AML/CFT requirements