Egypt

Experts for Egypt

Ask the Experts: Mohamed Fathalla

Egyptian Business Expert

Mohamed Fathalla , CPA is the managing partner in Fathalla & Co . Mohamed has over fifteen years of experience in providing tax , accounting, audit and management services to both local and international firms in Egypt.

As a member of IAPA International , Fathalla & Co. ( accountants and consultants) can provide support in every subjects demanded by customers due to the global connection with over 230 professional firms and groups in 58 countries which are members of IAPA.

Mohamed is a licensed Public Accountant in the Egyptian Institute of Chartered Accountants and is a member in the American institute of certified public accountants (AICPA). Mohamed is here to help with all Egyptian related business queries.

Fathalla & Co. ( accountants and consultants) has 4 offices in Cairo ,Alexandia and borg El Arab and is ready to help local and foriegn investors to do business easily in Egypt.

www.fathalla-cpa.com

002 011 3939 362

how do we get finance to buy a business in eygpt Question from gary cudd on 04/02/2012
Mohamed says:
dear sir

it is difficult to get finance from banks in egypt these days,,so we have to depend on other sources.

thanks

mohamed
Mr. Fathalla, We are doing freelance service mainly in IT field (most of our work are done through internet). for sometime now we are about to work with Egyptian companies and they were asking about our tax card and commercial register. So I was asking about the requirements to get these documents knowing that we are working remotely from Egypt and other countries. do we need to have an office in Egypt or there is any other solution? Regards Question from Moataz Younes on 02/02/2012
Mohamed says:
dear sir

it is better to call me to understand what you need exactly.
my mobile 002 0111 3939362

thanks

mohamed fathalla,CPA
salaam, brother mohamed, i have bought 2 apartment in hurgadha, i have paid all the money throug my uk company and i wanted now to register these 2 apartment in the uk company , but my lawyer is advising me to open up an egyptian company and register the apartment in the egptian company, which will be owned by my british company, but i need an egptian shareholder,my lawyer is willing to be that person,but will he have any hold on this company?.thats my worry, he said once i sell my apartment it will be easier to bring the money back to the uk..my lawyer said it will cost me 6000 egyptian pounds for the formatian of the company..if you could advise me on this and also if you would be willing to represent me on the matter of year end return or any other tax matter..the apartment cost is £50,000 pound stirling.many thanks. Question from oscar shah on 29/01/2012
Mohamed says:
dear sir

i need to know what will be the activity of this company in egypt? is it rent activity?
take care you can form a company with 100 % foriegn ownership.
please give me more details in order to help you,also i need your email.

thanks

mohamed fathalla,CPA
Good morning. I am thinking about running a small business in Hurghada. Could you give me some information how can I make it? What are the conditions and possibilities for me. Waiting for your response. Best wishes, ewa.nht@gmail.com Question from Ewa Latusek on 10/01/2012
Mohamed says:
dear sir

you are welcomed to egypt.

could you please give me more details about your activity?and a detailed describtion of your business? what type of business that you are going to do IN ORDER TO GIVE YOU RELEVANT INFORMATION?

thanks

mohamed Fathalla,CPA
Mobile: 002 012 4393923
002 011 3939362
Email: mohamed@fathalla-cpa.com
www.fathalla-cpa.com
We are owed GBP11,700.- from a trading company in Giza to whom we supplied in good faith some instruments. Our invoice is dated 21st September 2011. The company in Giza refuse to respond to our calls but we know that they have received them in good order and have sold them on. Is there any way we can retrieve our money? Question from Uri Friedlander on 10/01/2012
Mohamed says:
dear sir

you have 2 ways

1) i can send a lawyer from my office , he can convince them to pay for you .all what i need from you is to give me more details about the payment and whther it was LC or any other type.

if this step doesnt work , we will go to the second step
2) to make a case for them asking them to pay .

so if you want me to help you in that , so please give me more data.

please send email to me at: mohamed@fathalla-cpa.com

thanks

mohamed fathalla,CPA
My name is Christian, i am a Nigerian by nationality,I want to set up a business in egypt, my line of trade will be selling sports wears and sports equipments with the target of selling in egypt and beyond. i will own a shop, pls advice me on how to go about this i.e (1) how much is it gonna cost me to register this business? (2) does it require an egyptian patner? (3) what is the capital requirement to start this type of business? (4) will i need a work permit? (5) can i deal with the gorvenment alone or do i need an expert to do it for me? pls reply me urgent. thanks Question from CHRISTIAN EZEAGWU on 29/12/2011
Mohamed says:
dear Ms Christian,

i hope you are fine.

my answers are as follow:

1) governmental costs for forming a company depends on capital.are you going to import these clothes or you will buy it locally?
2)this company may be 100 % forigners .
3) in my point of view , minimum capital to start that in a good image is about 200,000 LE.
4) IF YOU ARE GOING TO STAY IN EGYPT MORE THAN 180 days every year, so itr is prefered to have a business visa.
5) it is better to depend on accounting office for the registration of the company.

thanks

mohamed fathalla,CPA
AS-SALAM ALAIKUM , SIR I AM FROM INDIA AND I WANT TO REGISTER A CONSTRUCTION FIRM IN SAUDI ARABIA. PLEASE HELP ME OUT . I WILL BE CARDIALLY THANKFUL TO YOU. I WILL WAIT FOR YOUR KIND AND SUPPORTIVE REVERT. Question from EMAM HASAN SIDDIQUI on 22/12/2011
Mohamed says:
dear sir

i have a friend , he is the owner of a consulting firm in saudi arabia,,,he send me the following data:

The required documents to license LLC. company in Saudi Arabia (owned by companies and individuals) as follow::

1. Shareholders resolution to invest in Kingdom of Saudi Arabia stating the shareholders names, capital, shares percentage (stock or cash) location (Al-Khobar City or Dammam ?please choose one city?), activities and appointing the General Manager notarized and authenticated from the Saudi Embassy at your country.
2. Copy of the Commercial Registration for each participating company authenticated from the Saudi embassy at your country translated to Arabic language and from recognized translation office.
3. Copy of Articles of Associations of each company, authenticated from the competent authority and the Saudi embassy at your country, translated to Arabic language from recognized translation office.
4. Passport copy for all partners and the appointed General Manager (all papers) accompanied with 4 original personnel photos (in white background) for each.
5. Non objection letter from the last sponsor if the General Manager have been reside in Saudi Arabia within last three years.
6. Copy of last two years budget for the company prepared by and authenticated from auditing office in the investor?s country and approved from the related official commerce or taxes office to be authenticated from the Saudi embassy at your country. translated to Arabic language from recognized translation office.
7. The principal Articles of Association of the new company complying with the Saudi ministry of commerce and industry laws (we shall draft it)
8. Power of attorney for our law firm to proceed establishing the company on behalf authenticated from the Saudi Embassy at your country. (we shall provide the draft of it).

- The requirements of contracting activity (in addition to the above stated general required documents) are as follow:

1- Provide the budget for the company owned by a foreign investor outside the Kingdom for three years prior to application for a license show the integrity of the financial situation of it prepared from accredited accountant office and authenticated from the tax authority on the country of the investor and Saudi Embassy.
2- Presence of a distinguished works done by the company previously in the field of activity which would like to invest in accompanied with the obtained certificates of achievement.
3- The company should be classified in its country with the same activity, and not less rating for the third degree or equivalent authenticated from the Saudi Embassy.
4- Bank certificate proving the solvency of the company amount of (SR. 250.000) authenticated by the Saudi Embassy.
5- The legal entity should be a limited liability company.
6- To provide a timetable for the steps to implement the project.
7- To provide Acknowledgment committing to deposit the company capital in a licensed Saudi bank after the issuance of investment license and certificate of deposit in the name of the company before obtaining the commercial registration

(We shall do the required Arabic translation for above documents by recognized translation office in KSA)

Our scope of work has been identified and noted to start and finalize all above procedures up to obtain the following
a) Investment license from General Investment Authority (SAGIA).
b) The Commercial Registration (CR) from Ministry of Commerce and Industry.
c) To register the Company at chamber of commerce.
d) Open company files In General Insurance Organization (GOSI) and Zakat and Income Tax Department.

- Stages of establishing a limited liability company

The stages of establishing a limited liability company in Saudi Arabia after fulfillment of all required documents are as follow:
1. To reserve the proposed company name at Ministry of Commence, this may take 2 days.
2. To submit investment application to Saudi investment Authority (SAGIA) and obtain SAGIA License, this may take 15 days.
3. To submit the Article of Association of the Company to Ministry of Commerce for study to be approved.
4. To notarize the Articles of Association of the company before the Notary Public, this may take approximately 3 weeks.
5. To publish a brief of the Article of Association of the Company in the Gazette (Umm Alqura news paper) this may take approximately 2 days.
6. To submit application to the Ministry of Commerce to obtain the commercial registration (CR), this may take approximately 3 weeks and this stage requires appointing the Company Manager and enter to Saudi Arabia and obtain the work permit and residence permit (Iqama) depositing the company capital in recognized Saudi Bank, lease contract for the company location and register the company at Chamber of Commerce.
7. Open company files In General Insurance Organization (GOSI) and Zakat and Income Tax Department this may take approximately 4 days.
8. Obtain the Investment License.

Total time of finalizing the procedures up to obtain the company CR. approximately 40days.

- The official cost of registration of the company approximately SR. 15.000 (fifteen thousand Saudi Riyals) excluding documents authentication form Ministry of foreign affairs and translation fees.
- you can open company at Riyadh and branch at Jeddah and vice-versa

thanks

mohamed fathalla,CPA
Dear Mr. Farhalla, I am very interested in exporting used car components from the Netherlands to Egypt. but i want to know what the legal restrictions are, general conditions, conditions for delivery or liability, the tarrifs and taxes, what financial aspects should be considered? Question from M. Sliman on 28/11/2011 Mohamed says: dear sir please tell me whther you plan to open a company in egypt or not ? or you will let a local company to import to egypt on your behalf? so my answers will depend on the way you plan to work in egypt. thanks mohamed fathalla ,CPA Dear Mr. Fathalla, To replay on your question, I actually want to know the best way or lets say the cost effective way of doing business:...it seems to be better to open a company in Egypt (in your earlier answers you suggested an LLC or a corporation) to be closer to the consumers and their needs. Thanks. Question from M. Sliman on 29/11/2011
Mohamed says:
dear sir

please send me your private email so that i can give you enough information...........also please tell me your nationality?

thanks

mohamed fathalla ,CPA
Dear Mr. Farhalla, I am very interested in exporting used car components from the Netherlands to Egypt. but i want to know what the legal restrictions are, general conditions, conditions for delivery or liability, the tarrifs and taxes, what financial aspects should be considered? Question from M. Sliman on 28/11/2011
Mohamed says:
dear sir

please tell me whther you plan to open a company in egypt or not ? or you will let a local company to import to egypt on your behalf?

so my answers will depend on the way you plan to work in egypt.

thanks

mohamed fathalla ,CPA
Dear Mohamed, Waht a great initiative, this site! I am truly hoping you can giveme an answer that I've been searching the net and credit rating agencies for for hours: Is there any standard payment term and/or method in Egypt? As I am currently hired by an international company as a credit controller, I need to know what the benchmarks are re DSO and payment term in Egypt.. Many thanks in advance for your help in this matter. Regards, Anne Question from Annemarie Bult on 16/11/2011
Mohamed says:
dear Anne

according to my understanding to the meaning of your question :
the concept of buing with credit in egypt is growing but still not so much ,,,,,most people depend on cash and checks..................there are some credit reating agences in egypt but they are all new as the culture of credit rating is not popular in egypt as in usa and europe.

if you have any question dont hesitate to contact me.

thanks

mohamed fathalla ,CPA
Member of the American institute of certified public accountants ( AICPA)
Member of the Egyptian society of accountants and auditors
Tel: 002 03 4807838 Fax: 002 03 4805619 Mobile: 002 012 4393923 002 011 3939362
Email: mohamed@fathalla-cpa.com
www.fathalla-cpa.com
Hello Mr. Fathalla, I am from India and started an IT business in back 2008. I want to expand my business in Europe, in Egypt for example, and wants your expert advise on that. I want that I can advertise in Europe and can target the potential customers out there. So, please help me in this regard. Thanks, Sanjeev Question from Sanjeev Goel on 07/11/2011
Mohamed says:
dear sir

May be this is not the area of my experience but i will give you my openion.

i think it is very difficult to market your business in egypt ,,,,as egypt is like india ,they are exporting IT solution to all the world.also there are thousands of IT companies in egypt.

i think the best way to advertise your company is to make advertisment in forigen countries ( may be in newspapers , famous websites,.......)

thanks

mohamed fathalla ,CPA
Hello Sir, Am Egyptian living in Sweden and trying to establish an import & export business between Sweden and Egypt and between Egypt and other lands. I heared that you have to have a company in Egypt and license for import and export from the Egyptian authorities to be able to do that. Is true? In that case, how to start a company in Egypt and get the requiered licens if there is any required? Sincerely, Mohamed Ouf Question from Mohamed Ouf on 24/10/2011
Mohamed says:
dear Mr Mohamed

i hope you are fine.

in order to import and export ,,,you must have a company in egypt.
this company is better to be LLC or a corporation.
after finishing registration of this company and after getting tax card and commercial register.........we have to apply for import and export licence .

take care , this company should be 100 % egyptian in order to import from outside. ( this is a condition to get
the import license).

we can help you in establishing this type of companies and to issue the import and export license.

please email me at mohamed@fathalla-cpa.com for any other questions.

thanks

mohamed fathalla ,CPA

Member of the American institute of certified public accountants ( AICPA)
Member of the Egyptian society of accountants and auditors
Tel: 002 03 4807838
Fax: 002 03 4805619
Mobile: 002 012 4393923
002 011 3939362
Email: mohamed@fathalla-cpa.com
www.fathalla-cpa.com
Dear Mr. Fathalla, my question might seem very easy, but I have found some difficulties to find decisive answers for. An American friend of mine wants to establish a beauty saloon in Cairo. The business will be 100% owned by her, so I have the following questions: - is it possible for foreigners to own business in Egypt? - do the precedures require approvals of the American embassy in Cairo? Question from Mohamed Nada on 23/10/2011
Mohamed says:
hello

it is allowed for forigners to establish companies ( it may be 100 % foriegn ownership ) ..............no need to get approval from any embassy.........here in egypt forigners are treated as egyptians in forming companies.........if you need any other information dont hesitate to contact me at mohamed@fathalla-cpa.com

thanks

mohamed Fathalla,CPA
Dear Mohamed - I live abroad and wish to come back to home country (Egypt), and therefore i'd like to start up business that would serve multinational clients whom i know and target regionaly and globaly, also have the business case to work with. The nature of the services i would like to offer them is all web based one, including on-line training services, chemicals excess & obslete brockage, man power supply, consultancy...etc. I have series of quistions, pls. 1) What are the conditions for establish web-based type company in Egypt? what benifit i would enjoy at regional and global level having the entity of the company being egyptian? or is it better to register the company in US, Dubai or even Panama!!, for me to have better benifits in Egypt in comparion to being a new Egyptian company in terms of taxes, fees....etc. 2) is better to haev it Free Zone company type?.......as you see i am bit lost, and my worry is where to start up the business and with what entity and company type to have both legal and traing flexibility working with multinational companies, on the other hand pay less tax and fees 3) whom you adviced me to contact to start up such business in Egypt. Thanks, Question from Medhat Saleh on 20/10/2011
Mohamed says:
dear Mr Medhat

i hope you are fine.

as i understand all your work will be done through the internet . so please tell me whether you will have clients in egypt or not ? and if you plan to add some other services in the future ?

please email me on mohamed@fathalla-cpa.com in order to give you more details.

thanks

mohamed fathalla ,CPA
Hi Mr Fathalla, I just have a few questions to ask. I don't want to set up my own business but I'd like to write to a company to ask if they would consider opening a branch out in Cairo. How do I start? And what kind of information do I need to convince them that they would benefit a lot if they opened in Egypt? Thanks for your time Shokran Question from Helena Asquith on 02/10/2011
Mohamed says:
dear Helena

egypt is a very good place for investment for many rasons:

1) cheap labor average is 100 $ per month
2) cheap electricity cost : it is about 20% of what is paid in europe.
3) egypt has a lot of trade agreements with many countries like no customs between egypt and all arab countries ,and with turkey........and we have a quiz agreement with USA that allow us to export to USA with any tarrifs or qoutas.

please send me your email to send you more information.

thanks

mohamed fathalla,CPA
Hi Mr Mohammed its kristina in reply to your question i am looking for good qhuality earopean clothing like english and italian styling but at affordable prices for customers and also good underwear and swim suits. Im in Sharm el Sheikh at the moment and hoping to go to Cairo next week would it be possible to meet up for advice? Question from kristina atherton on 18/08/2011
Mohamed says:
dear Ms Kristina

we can meet next sunday 22/8/2011 in cairo ,,,,is it relevant for you?

thanks

mohamed fathalla
Hello Mr Mohamed I am hoping to start a business in Egypt - How do I validate the authenticity of my contract for rental of a shop? How do I find the best clothes factory? I would be greatful for some help Many thanks Kristina Question from kristina atherton on 23/07/2011
Mohamed says:
Ms Kristine

i hope you are fine.

in order to register this contract ,we must stamp this rent contract in the notary office ,,,,,,,,after registering this contract ,you can submit it in any place.

there are many good clothes factories here in egypt ,but tell me waht type of clothes you need?

please email me at mohamed@fathalla-cpa.com

thanks

Mohamed Fathalla, CPA
Member of the American institute of certified public accountants ( AICPA)
Member of the Egyptian society of accountants and auditors
Tel: 002 03 4807838
Fax: 002 03 4805619
Mobile: 002 012 4393923
002 011 3939362
Email: mohamed@fathalla-cpa.com
http://www.fathalla-cpa.com
Dear Sir, We are import company in Pakistan and main office in Canada. We import Metal Scrap from all over the world. We also buy some material (Metal Scrap) from Egypt and now we want to estibalish a permanent company in Egypt on which we can ship our purchased material by ourself on our Egyptian company. Our main purpose to purchase metal scrap from Egypt and export from egypt. now we want your guidence to do this accuratly. Our concern person goes Egypt for loading of material and than comes back to pakistan but we want our permanent existance there in egypt for doing better business. Our person is going soon to Egypt again for loading and for forming a company. You kindly initially guide us than we want your professional services in future too. Looking forwarder for your prompt response. Thans & Best Regards Khalid Tufail MALIK & MALIK Lahore, Pakistan T: +92-42-3756-3232 Skype: malikandmaliks36 Email: malikandmaliks36@gmail.com Question from Khalid Tufail on 05/07/2011
Mohamed says:
Mr Khaled

i have sent my reply on your email,did you receive it?

thanks

mohamed fathalla ,CPA
Salam Walakum Mohamed, My name is Christine, my Muslim name is Khdajia. I have an idea for a business in Egypt, but I have no idea how to begin. I currently live in Louisiana, USA & have plans to come to Egypt soon, insha Allah. My business idea is a non-profit orginization, combining tourists agencies, hotels, schools, masques & other local resources, to educate persons new to Islam & their families, as well as anyone else interested in learning about Islam. The buisness would be two fold, being non-profit education, as well as, increasing Egyptian tourism, something much needed in Egypt right now. If you have any advice it is much appreciated. Thank you so much for your time. I look forward to speaking with you. Email is the best way to contact me. Awalakum Salam Brother Peace, Love & Respect, Khdajia Question from Christine Brunner on 22/06/2011
Mohamed says:
dear Ms Khadija

i hope you are fine.

as i understand ,you want to teach tourists about islam as well as attracting investors to visit egypt.

is it right ?
anyway please send me your email and i will be in contact with you to show you the best way for your ideas.

thanks

mohamed fathalla
I JUST ASK ABOUT HOW TO IMPROVE MY KNOWLEDGE IN PAYROLL MANAGEMENT? PLEASE I NEED YOUR ADVISE ASAP!!!! Question from EMAD SWAILAM on 25/05/2011
Mohamed says:
Mr Emad

payroll system depends on whether you are manufacturing or trading company.
we can help you in designing an accouting cycle to manage payroll efficiently.

thanks

mohamed fathalla,CPA
Hello, Thx you for your replay. The activity ill be in 2 me and my husband. the company for now it will have only 3 workers.me, my husband and onother person, at the begining, i think we will rent the cars for the turist. the agency it will be international, not only local. I wat to know how much capital i need to haveto openit, for th rncrsad t ote acivity is not a problem, but the importat thin is how muc capital they will required me to give me my licences.And what document i need. Awaiting for your reply best regads. Question from ioana el bada on 01/05/2011
Mohamed says:
dear Ms Loana

if you plan to start locally and to rent cars to tourists locally ,there is no capital requirmay for that .you can start with any capital ,,but if you need to have a work permit in egypt ,capital may be 300,000 LE ,,WE WILL PUT 10 % AT BANK which is 30,000 LE for a week and you can refund it back...........but if you have no problem in visa ,we can start with any capital that you see.

if you plan to work internationally and to get tourists from abroad,this option is not availbe now as the ministry of tourism restricts forming a touristic company for a year starting from march 2011 ,,,,so according to that information ,,you can start locally with no problems ......if you wish i can help you in that.

please send me emails to mohamed@fathalla-cpa.com

Thanks

Mohamed Fathalla
Dear Sir My name ia Ioana, i am an romanian citizen, my husband is egytian citizen, i would like to open a Travel Agency In Hurghada . My question is what i need to open a Travel Agency, what documents, how much money i need to have like capital,what licences?.Awaiting for your replay best regards. Ioana El Bada. Question from ioana el bada on 28/04/2011
Mohamed says:
Ms Loana

i hope you are fine.

ok it is easy to form this company.but i have some qustions.

1) are you going to make the activity under your name only ?or you will make a partnership?
2) how many foriegners will be included in this company?
3) are you going to rent buses and limozine or you will buy buses and cars?
4) does this travel agency will be for local market or you will organize travells from abroad in addition ?
5) please give me more detail about what you are willing to do exactly and number of partners in order to give you sufficent information.

thanks

mohamed Fathalla

please send me emails to the following : mohamed@fathalla-cpa.com
and m_fathalla2001@yahoo.com
Dear Mohamed Fathalia, I am married by contract to an Egyptian and we want to start a car care company in Hurghada. We will initially employ three staff and will invest no more than 200,000le. 1) What is the best way to register the company? 2) Is Hurghada a 'Free Zone' ? 3) Four of us are investing in the business although I am investing the largest share . If in the event our marriage ends, will my share of the business be protected as a shareholder and would we need a seperate contract stating this - in other words would the marriage and the business be treated as two seperate things? Question from Catherine Warner on 20/04/2011
Mohamed says:
Mrs Cathrine

i hope you are fine.

i have some qustions
1) are there forigners other than you?
2) please give me more detail about your activity?

concerning your questions
hurghada is not a free zone.
the best way for any forigner to form a company is to form LLC or a joint stock company ,,,,these 2 forms protects forigner rights and allow him to work easily in egypt.

if you establish a joint stock or LLC ,,EACH PARTNER HAS HIS OWN SHARE in the company and is considered to be independant from the others........in your case if we establish a joint stock or LLC ,,,you are seperated from your husband ie all shraholders in the company are independent in thir shares.....so there is no relation between marriage and business. if you are divorced -i hope not - your share will not be effected.

please answer my questions in order to tell you the way you can go in the business formation.

thanks

mohamed Fathalla,CPA
Mobile: 002 012 4393923
002 011 3939362
Email: mohamed@fathalla-cpa.com
www.fathalla-cpa.com
Dear Mohamed, I am looking to set up a business in Egypt in Sharm el Sheikh. My business is Fish Spa using Garra ruffa fish imported from Singapore.I would like to know if this is possible and also, please let me know what is required to start a business in Egypt (I have a British passport). I have an Egyptian business partner and already have rented premises. Please let me know if you require any more information. Looking forward to hearing from you soon. Kind regards, Andrena Question from Andrena Nash on 16/04/2011
Mohamed says:
dear mr Andrea

you are weloomed to egypt.

could you please give me more details about your activity?and a detailed describtion of your business?
what type of products that you are going to import IN ORDER TO GIVE YOU RELEVANT INFORMATION?

thanks

mohamed Fathalla,CPA
Mobile: 002 012 4393923
002 011 3939362
Email: mohamed@fathalla-cpa.com
www.fathalla-cpa.com
Hello, I'd like to start a small clothes manufacturing business under my husband name as he is Egyptian and it would be easier I think. What kind of documentation we need and how to register our business to be legal in Egypt? Then possibly if you can explain how to obtain a retail license here in order to sell our products? Thanks, Anna Question from Anastasiya Biryozova on 02/04/2011
Mohamed says:
dear Ms Anna

i hope you are fine.

ok no problem of your business .but i think it is better to meet you either in my cairo office or Alex office to discuss these points.

thanks

mohamed fathalla,CPA

002 011 3939362
info@fathalla-cpa.com
Thanks Mohamed, We're looking to partner with a consultancy in Egypt, but our terms and conditions require them to have public liability, employers' liability, and professional indemnity insurance. Therefore we need to know if these are legal requirements in Egypt. There's no supply of goods, or construction, etc., involved, simply professional services from a local Egyptian team. Thanks ! Question from Bernard Ross on 22/03/2011
Mohamed says:
Dear Mr. Bernard,

I hope you are fine.

Do you already found a partner in Egypt? if you need ,I know a very skilled consultants who can help you in Egypt?

Here in Egypt, ,the knowledge of insurance is not widely spread.
it is not obligatory to make professional indemnity insurance for consultants ,,but this can be done in private insurance company.( I already face this situation as I am consultant to many multinational companies in Egypt)

We can make social insurance on employers and employees in the government,,,this will be a governmental insurance.

Here are some data about forming a company in Egypt:

If you want to establish a permanent entity in Egypt?.so it is preferable to establish an LLC or a corporation( joint stock).

It is possible to establish 100 % foreign ownership company in Egypt. ( costs of forming is same when having foreigners or Egyptians)

In order to establish an LLC we need the following:

1- At least 2 legal persons or entities over 21 years.( may be 2 companies)
2- Power of attorney
3- Copy of passports
4- Minimum capital is 1000 LE we have to put 100% at bank and then getting it back after finishing the registration of the company.
5- There will be a police inquiry about the persons who will participate in the formation of the company.
6- A place for managing the work ,,it may be a rented flat.( I can manage this for you easily)
7- Name of the founders and mangers of the company and their % share in capital
8- We have to choose a name of the company in order to get an approval on that

If all documents are available ,,,this process will take about 10 business days. but if the founders are Indians or Pakistanis it will take more time for the police inquiry .we have to wait the result and approval to work in order to form the company.

After finishing the formation of the company ,You will get after that a tax card, commercial register and a company contract.

In order to establish a corporation we need the following:

1- At least 3 legal persons or entities over 21 years.( may be 2 companies and a person)
2- Power of attorney
3- Copy of passports
4- Minimum capital is 300000 LE we have to put 10% at bank and then getting it back after finishing the registration of the company.
5- There will be a police inquiry about the persons who will participate in the formation of the company.
6- A place for managing the work ,,it may be a rented flat.( I can manage this for you easily)
7- Name of the founders and mangers of the company and their % share in capital
8- We have to chose a name of the company in order to get an approval on that

If all documents are available ,,,this process will take about 10 business days. but if the founders are Indians or Pakistanis it will take more time for the police inquiry .we have to wait the result and approval to work in order to form the company.

After finishing the formation of the company ,You will get after that a tax card, commercial register and a company contract.

Cost and duties depend on the amount of capital?

There are 4 types of taxes in Egypt :

1) Income tax: 20% of profit
2) Sales tax ranges from 1.2% to 10 % on total revenue ( indirect tax)..if the project done in a free zone ,no taxes
3) Withholding tax
4) Payroll taxes

Our services include:

1) Establishing all types of corporations ( joint stock ,LLC ,foreign branches,?..)
2) Dealing with all governmental authorities such Ministry of investment and capital market authority.
3) Submitting all tax returns( income tax ,sales tax ,withholding tax and labor tax)
4) Work permits.
5) Preparing financial statements
6) Bookkeeping
7) Auditing and accounting
8) Feasibility studies
9) Establishing accounting and financial systems
10) Recruitment
11) Preparing B.O.D meeting and general assembly meetings for joint stock companies.
12) Training
13) Legal services as we are employing 2 lawyers in our office.
14)all types of consultation services.
15) payroll services.
16) bank account introduction

If you have any question, don?t hesitate to contact us

Thanks

Mohamed fathalla, CPA
Member of the American Institute of Certified Public Accountants ( AICPA)
Member of the Egyptian Society of Accountants and Auditors
Tel : 002 011 3939362
002 012 4393923
Fax: 002 03 4805619
email: mohamed@fathalla-cpa.com
website: www.fathalla-cpa.com
Could you tell me the requirements for public liability insurance in Egypt ? The business in question is social and environmental consultancy. Question from Bernard Ross on 22/03/2011
Mohamed says:
dear sir

i need to know the following
1) what is your activity in detail ,does it include any kind of constustion ,or supply and apply materials.
2)for forigners ,there are 2 legal status ,either LLC or Joint stock ( corporation).......what do you mean with pulic liabilty requirments?

thanks

mohamed Fathalla,CPA

Mobile: 002 012 4393923 002 011 3939362
Email: mohamed@fathalla-cpa.com www.fathalla-cpa.com
Hi Mohamed Yes the bar will sell wine and beer etc, It will have a small kitchen for snack food, i will be renting for a 5 year term to start, I was hoping to take it on without a partner but i can arrange an egyptian partner very easily and he has many years experiance in the tourism industry. Paul Question from paul leggett on 17/02/2011
Mohamed says:
Mr Paul

could you please send me your email in order to contact you.

thanks

mohamed
Hi Mohamed I am very interested in opening a bar/ coffee and snack venue in hurghada, Could you give me any insight to what needs to be done. Regards Paul Question from paul leggett on 15/02/2011
Mohamed says:
dear Mr Paul

hope that all things are good.

please tell me whether you want to rent or purchase a place?
are you going to offer wine or not?does it include a restaurant or not?

do you have partners with you or not ?

waiting your answers and after that i will give you a full information of forming a company in egypt

thanks

Mohamed fathalla,CPA
Dear Mohamed Fathalla, Could you please give me an advice on starting a trading company in Egypt, Hurghada. Is it possible to establish a company with only one owner - foreigner (EU). I plan importing high technology sporting goods which do not have Egyptian alternative from Europe or other countries and selling them in Egypt or reselling to other African countries. Could you also please advise where I can find information about Egypt import taxes? Thank you very much! Question from Maris Gabrans on 06/02/2011
Mohamed says:
dear sir

it is possible to establish a company with one owner but it is preferable as a forigner to establish LLC or joint stock company as these lagal structures will be easy for you to do business easily in egypt while a solepropritiorship ,sometimes faces some obstacles ,,,,,so i suggest to bring another person in addition to you ,this person may be forigner or egyptian ,,,but is better.

take care ,any company that include forigners are not allowed to import finished goods,,but i have some solutions for that

. if you need any other information ,,don?t hesitate to contact me

. Thanks

Mohamed Fathalla, CPA
Member of the American institute of certified public accountants ( AICPA)
Member of the Egyptian society of accountants and auditors
Tel: 002 03 4807838
Fax: 002 03 4805619
Mobile: 002 012 4393923 002 011 3939362
Email: mohamed@fathalla-cpa.com
www.fathalla-cpa.com
Dear Mr Fathalla, we would like to start a new business in Egypt, our activity will consist mainly on exporting petroleum derived products, We would like to have more details about the procedures, and if there is any restrictions in exporting petrochemical products, Thank you, Question from Nour Khalid on 03/02/2011
Mohamed says:
dear sir

you are welcomed in any time.

any company in egypt either contain egyptian or forigners are allowed to export goods from egypt....the only restriction is that any company contais foriegners are not allowed to import finished goods.

you can easily establish a company in egypt but tell me your actiity in detail and the lagel status that you need whether it is LLC or a joint stock company.

thanks

mohamed fathalla,CPA
Do we still need to have 51% egyptian ownership for business outside of Sinai? Question from jon dawson on 09/01/2011
Mohamed says:
dear sir

you can establish a 100 % foreign ownership ,,,if you establish either a joint stock company or LLC.

if you need any other information please dont hesitate to contact us.

thanks

Mohamed fathalla,CPA
002 0113939362 002 0124393923
I am a general manager for a new import/export business and need to know where can I go and get the information I need to understand the steps clearing that I need to take to import/export in Egypt. Thank you so much. Question from Fard Mujtahid Fardan on 06/01/2011
Mohamed says:
dear sir,,

happy new year.

please tell me what do you want exactly?do you want to establish a trading company in egypt that will import and export goods? what type of goods you are planning to trade?how many partners are going to be in the egyptian company?

thanks

Mohamed Fathalla, CPA

Member of the American institute of certified public accountants ( AICPA)
Member of the Egyptian society of accountants and auditors
Tel: 002 03 4807838
Fax: 002 03 4805619
Mobile: 002 012 4393923
002 011 3939362
Email: mohamed@fathalla-cpa.com
www.fathalla-cpa.com
Dear Mr. Fathalla, I represent an Import-Export Company from Albania. Now I want to import goods from Egypt to Albania and Kosovo. For this reason I want to open a Representative Office of my Company in EGYPT. This office will serve only to Export EGYPTIAN goods to Albania and Kosovo. Please, help me to know about the conditions and fees of opening a such activity in EGYPT. Regards, Vilson Bejko,Albania Question from Vilson Bejko on 13/12/2010
Mohamed says:
dear mr Vilson

i hope you are fine.

you are welcomed in egypt.

First i would like to introduce our firm:

Fathalla & Co. ( Accountants and Consultants ) is considered one of the fast growing Accounting ,Tax ,Auditing and Consulting firms creates powerful business solutionsEgypt

We implement cutting-edge solutions for numerous valued clients from many countries such as : UK ,Germany ,Netherland ,Japan and Turkey.

We have helped many multinational companies to do business easily in Egypt.

Fathalla & Co. ( Accountants and Consultants ) is a member of IAPA International which is considered one of the top 25 accounting networks and associations in the world. ( www.iapa.net)

Our services include:
1) Establishing all types of corporations
2) Dealing with all governmental authorities such Ministry of investment and capital market authority.
3) Submitting all tax returns( income tax ,sales tax ,withholding tax and labor tax)
4) Work permits.
5) Preparing financial statements
6) Bookkeeping
7) Auditing and accounting
8) Feasibility studies
9) Establishing accounting and financial systems
10) Recruitment
11) Preparing B.O.D meeting and general assembly meetings.

I will give you a brief information about having a company in Egypt:

If you want to establish a permanent entity in Egypt?.so it is preferable to establish an LLC or a corporation( joint stock).
It is possible to establish 100 % foreign ownership company in Egypt.

In order to establish a corporation we need the following:

1- At least 3 legal persons or entities over 21 years.( may be 2 companies and a person)
2- Power of attorney
3- Copy of passports
4- Minimum capital is 300000 LE we have to put 10% at bank and then getting it back after finishing the registration of the company.
5- There will be a police inquiry about the persons who will participate in the formation of the company.
6- A place for managing the work ,,it may be a rented flat.( I can manage this for you easily)
7- Name of the founders and mangers of the company and their % share in capital

If all documents are available ,,,this process will take about 10 business days. but if the founders are Indians or Pakistanis it will take more time for the police inquiry .we have to wait the result and approval to work in order to form the company.

You will get after that a tax card, commercial register and a company contract.

Cost and duties depend on the amount of capital?.but I think 300,000 LE is enough for a corporation.

In order to establish LLC, we need the following:

1- At least 2 legal persons or entities over 21 years.( may be 2 companies )
2- Power of attorney
3- Copy of passports
4- Minimum capital is 1000 LE we have to put 100% at bank and then getting it back after finishing the registration of the company.
5- There will be a police inquiry about the persons who will participate in the formation of the company.
6- A place for managing the work ,,it may be a rented flat.( I can manage this for you easily)
7- Name of the founders and mangers of the company and their % share in capital

In the LLC all capital must be paid one time,,,not 10% as in corporation.

In LLC ,THE MANGER MUST BE EGYPTIAN, but in a corporation the BOD may be all foreigners.
WE NEED AT least one egyptian manger

If all documents are available ,,,this process will take about 10 business days. but if the founders are Indians or Pakistanis it will take more time for the police inquiry .we have to wait the result and approval to work in order to form the company.

You will get after that a tax card, commercial register and a company contract.

There are 4 types of taxes:

1) Income tax: 20% of profit
2) Sales tax ranges from 1.2% to 10 % on total revenue ( indirect tax
3) Withholding tax
4) Payroll taxes

if you need any other information ,,don?t hesitate to contact me.

Thanks

Mohamed Fathalla, CPA
Member of the American institute of certified public accountants ( AICPA)
Member of the Egyptian society of accountants and auditors
Tel: 002 03 4807838
Fax: 002 03 4805619
Mobile: 002 012 4393923
002 011 3939362
Email: mohamed@fathalla-cpa.com
www.fathalla-cpa.com
Dear Mr. Mohamed, We are a Facilities Services company (EMCOR Facilities Services), based in UAE and have branches in the Gulf Region. We are interested to open a branch in Egypt. We need to know the procedure and the documents required please. Best regards, Assem Chabti achabti@emcorme.com +97144503601 Question from Assem Chabti on 29/11/2010
Mohamed says:
Dear sir

I hope you are fine.

First I would like to introduce my office:

Fathalla & Co. ( Accountants and Consultants ) is considered one of the fast growing Accounting ,Tax ,Auditing and Consulting firms creates powerful business solutions In Alexandria and Cairo.

We implement cutting-edge solutions for numerous valued clients from many countries such as : UK ,Germany ,Netherland ,Japan and Turkey.

We have helped many multinational companies to do business easily in Egypt.

Fathalla & Co. is the only representative of IAPA INTERNATIONAL in Egypt ,which is considered one of the top 25 accounting networks and associations in the world. (www.iapa.net)

Our services include:

1) Establishing all types of corporations ( joint stock ,LLC ,foreign branches,?..)
2) Dealing with all governmental authorities such Ministry of investment and capital market authority.
3) Submitting all tax returns( income tax ,sales tax ,withholding tax and labor tax)
4) Work permits.
5) Preparing financial statements
6) Bookkeeping
7) Auditing and accounting
8) Feasibility studies
9) Establishing accounting and financial systems
10) Recruitment
11) Preparing B.O.D meeting and general assembly meetings for joint stock companies.
12) Training

I will give you a brief information about having a company in Egypt:

If you want to establish a permanent entity in Egypt?.so it is preferable to establish an LLC or a corporation( joint stock).

It is possible to establish 100 % foreign ownership company in Egypt. ( costs of forming is same when having foreigners or Egyptians)

I prefer a joint stock corporation if you plan to work permanently ?in this case you are allowed to do all activities like Egyptians except few things.

In order to establish a corporation we need the following:

1- At least 3 legal persons or entities over 21 years.( may be 2 companies and a person)
2- Power of attorney
3- Copy of passports
4- Minimum capital is 300000 LE we have to put 10% at bank and then getting it back after finishing the registration of the company.
5- There will be a police inquiry about the persons who will participate in the formation of the company.
6- A place for managing the work ,,it may be a rented flat.( I can manage this for you easily)
7- Name of the founders and mangers of the company and their % share in capital
8- We have to chose a name of the company in order to get an approval on that

If all documents are available ,,,this process will take about 10 business days. but if the founders are Indians or Pakistanis it will take more time for the police inquiry .we have to wait the result and approval to work in order to form the company.

After finishing the formation of the company ,You will get after that a tax card, commercial register and a company contract.

Cost and duties depend on the amount of capital?.but I think 300,000 LE is enough for a corporation.

In order to establish an LLC we need the following:

9- At least 2 legal persons or entities over 21 years.( may be 2 companies)
10- Power of attorney
11- Copy of passports
12- Minimum capital is 1000 LE we have to put 100% at bank and then getting it back after finishing the registration of the company.
13- There will be a police inquiry about the persons who will participate in the formation of the company.
14- A place for managing the work ,,it may be a rented flat.( I can manage this for you easily)
15- Name of the founders and mangers of the company and their % share in capital
16- We have to chose a name of the company in order to get an approval on that

If all documents are available ,,,this process will take about 10 business days. but if the founders are Indians or Pakistanis it will take more time for the police inquiry .we have to wait the result and approval to work in order to form the company.

After finishing the formation of the company ,You will get after that a tax card, commercial register and a company contract.

There are 4 types of taxes in Egypt :

1) Income tax: 20% of profit
2) Sales tax ranges from 1.2% to 10 % on total revenue ( indirect tax)..if the project done in a free zone ,no taxes
3) Withholding tax
4) Payroll taxes

We have to make social insurance on the workers.

if you need any other information ,,don?t hesitate to contact me.

Thanks

Mohamed Fathalla, CPA
Member of the American institute of certified public accountants ( AICPA)
Member of the Egyptian society of accountants and auditors
Tel: 002 03 4807838
Fax: 002 03 4805619
Mobile: 002 012 4393923
002 011 3939362
Email: mohamed@fathalla-cpa.com
www.fathalla-cpa.com
Dear Mohamed, I am looking to set up a business in Egypt, preferrably not in Cairo (high polution etc.) Can you give me advice which areas are great for expats to live (I may rent an appartment as well) and start a business (expand a business) Also, please let me know what is required to start a business in Egypt (I am on Dutch passport) in the Training Industry. see www.mindxcel.com Regards, Evina Question from evina hameeteman on 27/10/2010
Mohamed says:
Dear Evena
I hope you are fine.

you are welcomed in Egypt.

First I would like to introduce our firm:

Fathalla & Co. ( Accountants and Consultants ) is considered one of the fast growing Accounting ,Tax ,Auditing and Consulting firms creates powerful business solutions in Egypt
We implement cutting-edge solutions for numerous valued clients from many countries such as : UK ,Germany ,Netherland ,Japan and Turkey.
We have helped many multinational companies to do business easily in Egypt.
Fathalla & Co. ( Accountants and Consultants ) is a member of IAPA International which is considered one of the top 25 accounting networks and associations in the world. ( www.iapa.net)

Our services include:
1) Establishing all types of corporations
2) Dealing with all governmental authorities such Ministry of investment and capital market authority.
3) Submitting all tax returns( income tax ,sales tax ,withholding tax and labor tax)
4) Work permits.
5) Preparing financial statements
6) Bookkeeping
7) Auditing and accounting
8) Feasibility studies
9) Establishing accounting and financial systems
10) Recruitment
11) Preparing B.O.D meeting and general assembly meetings.

I will give you a brief information about having a company in Egypt: If you want to establish a permanent entity in Egypt?.so it is preferable to establish an LLC or a corporation( joint stock). It is possible to establish 100 % foreign ownership company in Egypt.

In order to establish a corporation we need the following:
1- At least 3 legal persons or entities over 21 years.( may be 2 companies and a person)
2- Power of attorney
3- Copy of passports
4- Minimum capital is 300000 LE we have to put 10% at bank and then getting it back after finishing the registration of the company.
5- There will be a police inquiry about the persons who will participate in the formation of the company.
6- A place for managing the work ,,it may be a rented flat.( I can manage this for you easily)
7- Name of the founders and mangers of the company and their % share in capital If all documents are available ,,,

this process will take about 10 business days. but if the founders are Indians or Pakistanis it will take more time for the police inquiry .we have to wait the result and approval to work in order to form the company.
You will get after that a tax card, commercial register and a company contract.

Cost and duties depend on the amount of capital?.but I think 300,000 LE is enough for a corporation.

In order to establish LLC, we need the following:
1- At least 2 legal persons or entities over 21 years.( may be 2 companies )
2- Power of attorney
3- Copy of passports
4- Minimum capital is 1000 LE we have to put 100% at bank and then getting it back after finishing the registration of the company
. 5- There will be a police inquiry about the persons who will participate in the formation of the company.
6- A place for managing the work ,,it may be a rented flat.( I can manage this for you easily)
7- Name of the founders and mangers of the company and their % share in capital In the LLC

all capital must be paid one time,,,not 10% as in corporation.
In LLC ,THE MANGER MUST BE EGYPTIAN, but in a corporation the BOD may be all foreigners.
WE NEED AT least one Egyptian manger .
If all documents are available ,,,this process will take about 10 business days. but if the founders are Indians or Pakistanis it will take more time for the police inquiry .

we have to wait the result and approval to work in order to form the company. You will get after that a tax card, commercial register and a company contract.

There are 4 types of taxes:
1) Income tax: 20% of profit
2) Sales tax ranges from 1.2% to 10 % on total revenue ( indirect tax
3) Withholding tax
4) Payroll taxes

in my view ,i see that alexandria is a good place for your business.

if you need any other information ,,don?t hesitate to contact me

Mohamed Fathalla,CPA
Member of the American Institute of Certified Public Accountants ( AICPA)
Member of the Egyptian Society of Accounatants and Auditors
Tel: 002 03 4807838
Fax: 002 03 4805619
Mobile: 002 012 4393923
002 011 3939362
Email: mohamed@fathalla-cpa.com
www.fathalla-cpa.com
Asalam alaikum. I am interested in starting an export business in Cairo - exporting handicrafts made by women's projects to the UK / Europe. I want to do it under Investment Law, as I wish also to obtain a 5 year permanent residency visa at the same time. I believe I read a year or so ago that if you go via GAFI, then you have it all in one visit. I am particularly concerned about the capital investment! I understand that if I wish to be a sole trader then I must put up 250000LE capital (or $50000). However, I am not clear what happens to this money? Do I keep it in the bank untouched? Or can I use it to purchase goods to export, pay running costs for an office and so on? Can I get a 5 year permanent residency visa on this basis? I would be grateful if you know a good link with the specific details that I require as I have read the GAFI website and it doesn't go into the details. Thank you Question from Brigid Cooling on 19/09/2010
Mohamed says:
Dear sir

I hope you are fine.

you are welcomed in Egypt.

First I would like to introduce our firm:

Fathalla & Co. ( Accountants and Consultants ) is considered one of the fast growing Accounting ,Tax ,Auditing and Consulting firms creates powerful business solutions in Egypt
We implement cutting-edge solutions for numerous valued clients from many countries such as : UK ,Germany ,Netherland ,Japan and Turkey.
We have helped many multinational companies to do business easily in Egypt.
Fathalla & Co. ( Accountants and Consultants ) is a member of IAPA International which is considered one of the top 25 accounting networks and associations in the world. ( www.iapa.net)

Our services include:
1) Establishing all types of corporations
2) Dealing with all governmental authorities such Ministry of investment and capital market authority.
3) Submitting all tax returns( income tax ,sales tax ,withholding tax and labor tax)
4) Work permits.
5) Preparing financial statements
6) Bookkeeping
7) Auditing and accounting
8) Feasibility studies
9) Establishing accounting and financial systems
10) Recruitment
11) Preparing B.O.D meeting and general assembly meetings.

I will give you a brief information about having a company in Egypt: If you want to establish a permanent entity in Egypt?.so it is preferable to establish an LLC or a corporation( joint stock). It is possible to establish 100 % foreign ownership company in Egypt.

In order to establish a corporation we need the following:
1- At least 3 legal persons or entities over 21 years.( may be 2 companies and a person)
2- Power of attorney
3- Copy of passports
4- Minimum capital is 300000 LE we have to put 10% at bank and then getting it back after finishing the registration of the company.
5- There will be a police inquiry about the persons who will participate in the formation of the company.
6- A place for managing the work ,,it may be a rented flat.( I can manage this for you easily)
7- Name of the founders and mangers of the company and their % share in capital If all documents are available ,,,

this process will take about 10 business days. but if the founders are Indians or Pakistanis it will take more time for the police inquiry .we have to wait the result and approval to work in order to form the company.
You will get after that a tax card, commercial register and a company contract.

Cost and duties depend on the amount of capital?.but I think 300,000 LE is enough for a corporation.

In order to establish LLC, we need the following:
1- At least 2 legal persons or entities over 21 years.( may be 2 companies )
2- Power of attorney
3- Copy of passports
4- Minimum capital is 1000 LE we have to put 100% at bank and then getting it back after finishing the registration of the company
. 5- There will be a police inquiry about the persons who will participate in the formation of the company.
6- A place for managing the work ,,it may be a rented flat.( I can manage this for you easily)
7- Name of the founders and mangers of the company and their % share in capital In the LLC

all capital must be paid one time,,,not 10% as in corporation.
In LLC ,THE MANGER MUST BE EGYPTIAN, but in a corporation the BOD may be all foreigners.
WE NEED AT least one Egyptian manger .
If all documents are available ,,,this process will take about 10 business days. but if the founders are Indians or Pakistanis it will take more time for the police inquiry .

we have to wait the result and approval to work in order to form the company. You will get after that a tax card, commercial register and a company contract.

There are 4 types of taxes:
1) Income tax: 20% of profit
2) Sales tax ranges from 1.2% to 10 % on total revenue ( indirect tax
3) Withholding tax
4) Payroll taxes

if you need any other information ,,don?t hesitate to contact me

Mohamed Fathalla,CPA
Member of the American Institute of Certified Public Accountants ( AICPA)
Member of the Egyptian Society of Accounatants and Auditors
Tel: 002 03 4807838
Fax: 002 03 4805619
Mobile: 002 012 4393923
002 011 3939362
Email: mohamed@fathalla-cpa.com
www.fathalla-cpa.com
Dear Mr Mohamed Fathalla, I had written earlier, but apparently my query has not reached you. I am Anuj Joshi, and work for a partner of a global HR consulting company, with HQ loosely based out of Singapore and London. Our company wishes to support existing consulting clients' offices in Egypt by opening our own office there. We wish to understand what is the best form of opening an office and how in Egypt - our own, or JV . We are interested in liaison or representative office set up as well, if that works. We shall look at servicing existing clients plus prospect for new ones. We plan to have a strength of 2 to 5 staff in this office. Your advice is eagerly looked forward to. Thanks, Anuj Question from ANUJ R. JOSHI on 06/09/2010
Mohamed says:
Dear Sir

I hope you are fine.

you are welcomed in Egypt.

First I would like to introduce our firm:

Fathalla & Co. ( Accountants and Consultants ) is considered one of the fast growing Accounting ,Tax ,Auditing and Consulting firms creates powerful business solutions in Egypt
We implement cutting-edge solutions for numerous valued clients from many countries such as : UK ,Germany ,Netherland ,Japan and Turkey.
We have helped many multinational companies to do business easily in Egypt.
Fathalla & Co. ( Accountants and Consultants ) is a member of IAPA International which is considered one of the top 25 accounting networks and associations in the world. ( www.iapa.net)

Our services include:
1) Establishing all types of corporations
2) Dealing with all governmental authorities such Ministry of investment and capital market authority.
3) Submitting all tax returns( income tax ,sales tax ,withholding tax and labor tax)
4) Work permits.
5) Preparing financial statements
6) Bookkeeping
7) Auditing and accounting
8) Feasibility studies
9) Establishing accounting and financial systems
10) Recruitment
11) Preparing B.O.D meeting and general assembly meetings.

I will give you a brief information about having a company in Egypt: If you want to establish a permanent entity in Egypt?.so it is preferable to establish an LLC or a corporation( joint stock). It is possible to establish 100 % foreign ownership company in Egypt.

In order to establish a corporation we need the following:
1- At least 3 legal persons or entities over 21 years.( may be 2 companies and a person)
2- Power of attorney
3- Copy of passports
4- Minimum capital is 300000 LE we have to put 10% at bank and then getting it back after finishing the registration of the company.
5- There will be a police inquiry about the persons who will participate in the formation of the company.
6- A place for managing the work ,,it may be a rented flat.( I can manage this for you easily)
7- Name of the founders and mangers of the company and their % share in capital If all documents are available ,,,

this process will take about 10 business days. but if the founders are Indians or Pakistanis it will take more time for the police inquiry .we have to wait the result and approval to work in order to form the company.
You will get after that a tax card, commercial register and a company contract.

Cost and duties depend on the amount of capital?.but I think 300,000 LE is enough for a corporation.

In order to establish LLC, we need the following:
1- At least 2 legal persons or entities over 21 years.( may be 2 companies )
2- Power of attorney
3- Copy of passports
4- Minimum capital is 1000 LE we have to put 100% at bank and then getting it back after finishing the registration of the company
. 5- There will be a police inquiry about the persons who will participate in the formation of the company.
6- A place for managing the work ,,it may be a rented flat.( I can manage this for you easily)
7- Name of the founders and mangers of the company and their % share in capital In the LLC

all capital must be paid one time,,,not 10% as in corporation.
In LLC ,THE MANGER MUST BE EGYPTIAN, but in a corporation the BOD may be all foreigners.
WE NEED AT least one Egyptian manger .
If all documents are available ,,,this process will take about 10 business days. but if the founders are Indians or Pakistanis it will take more time for the police inquiry .

we have to wait the result and approval to work in order to form the company. You will get after that a tax card, commercial register and a company contract.

There are 4 types of taxes:
1) Income tax: 20% of profit
2) Sales tax ranges from 1.2% to 10 % on total revenue ( indirect tax
3) Withholding tax
4) Payroll taxes

if you need any other information ,,don?t hesitate to contact me

Mohamed Fathalla,CPA
Member of the American Institute of Certified Public Accountants ( AICPA)
Member of the Egyptian Society of Accounatants and Auditors
Tel: 002 03 4807838
Fax: 002 03 4805619
Mobile: 002 012 4393923
002 011 3939362
Email: mohamed@fathalla-cpa.com
www.fathalla-cpa.com

Mohamed Fathalla : Egypt

Egypt

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Mohamed says:

Mohamed says:

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