Can a foreigner own 100% of an Egyptian company?

In most sectors, yes. The Companies Law and the Investment Law together permit 100% foreign ownership across general trading (subject to the Law 121/1982 partner rules for import-for-trade activity), services, manufacturing, holding, and consulting. A short list of sectors carries partner requirements or thresholds: parts of media, certain agricultural land, Sinai real estate, and some legacy-regulated activities. Confirm the sector treatment before locking in the entity.

What is the minimum capital for each entity?

LLC and One-Person Company: EGP 1,000 minimum. Joint-Stock Company: EGP 250,000 issued, with 10% paid on incorporation (EGP 25,000). Free Zone (Law 72): set by the GAFI Free Zone Board based on the activity and the zone. Foreign Office Branch: no capital requirement; the branch is funded by the foreign parent as needed. These minimums are floors, not recommendations. Most operating businesses capitalise materially above them.

Which entity gives the fastest setup?

The One-Person Company is typically fastest, at 5 to 10 working days for a clean file. The LLC follows at 7 to 14 working days. The JSC takes 14 to 30 working days because of the additional governance documentation. Free Zone runs 30 to 60 days because of the GAFI Free Zone Board approval. The Foreign Office Branch takes 21 to 45 working days because of the apostilled foreign-parent documentation. None of these include the operational onboarding (bank accounts, tax card, hiring), which adds another 30 to 60 days.

Can I change the entity type later if I picked wrong?

Partly, and at material cost. A One-Person Company can be converted to an LLC by admitting shareholders. An LLC can be converted to a JSC, and a JSC to an LLC, under specific legal procedures. A Free Zone entity cannot become an inland LLC without effectively a new incorporation and a new GAFI dossier. The Foreign Office Branch cannot be converted at all; when the parent decides to trade, it sets up a new entity. Conversions are possible but expensive in time and money. Choosing the right entity at the start is materially cheaper than fixing the wrong one later.

Does the entity choice affect my residency permit?

Indirectly, yes. The investor residency permit looks at the investment quantum and the business activity. The entity holds the investment, so it must be in place before the permit application is filed. Some entity choices (Free Zone, JSC at meaningful capital) carry residency-friendly profiles; the Foreign Office Branch carries a representative visa rather than an investor residency. The residency briefing page covers this in more detail.

When does the entity decision need to be locked in?

Before any execution begins. The entity choice cascades into the Memorandum of Association, the capital structure, the bank account opening, the tax registration, the social-insurance file, and the residency strategy. Changing it later costs three to five times what getting it right the first time would have. The advisory deliverable that follows the discovery call sets out the analysis on paper before any incorporation filing begins.

Can a foreigner own 100% of an Egyptian company?

In most sectors, yes. The Companies Law and the Investment Law together permit 100% foreign ownership across general trading (subject to the Law 121/1982 partner rules for import-for-trade activity), services, manufacturing, holding, and consulting. A short list of sectors carries partner requirements or thresholds: parts of media, certain agricultural land, Sinai real estate, and some legacy-regulated activities. Confirm the sector treatment before locking in the entity.

What is the minimum capital for each entity?

LLC and One-Person Company: EGP 1,000 minimum. Joint-Stock Company: EGP 250,000 issued, with 10% paid on incorporation (EGP 25,000). Free Zone (Law 72): set by the GAFI Free Zone Board based on the activity and the zone. Foreign Office Branch: no capital requirement; the branch is funded by the foreign parent as needed. These minimums are floors, not recommendations. Most operating businesses capitalise materially above them.

Which entity gives the fastest setup?

The One-Person Company is typically fastest, at 5 to 10 working days for a clean file. The LLC follows at 7 to 14 working days. The JSC takes 14 to 30 working days because of the additional governance documentation. Free Zone runs 30 to 60 days because of the GAFI Free Zone Board approval. The Foreign Office Branch takes 21 to 45 working days because of the apostilled foreign-parent documentation. None of these include the operational onboarding (bank accounts, tax card, hiring), which adds another 30 to 60 days.

Can I change the entity type later if I picked wrong?

Partly, and at material cost. A One-Person Company can be converted to an LLC by admitting shareholders. An LLC can be converted to a JSC, and a JSC to an LLC, under specific legal procedures. A Free Zone entity cannot become an inland LLC without effectively a new incorporation and a new GAFI dossier. The Foreign Office Branch cannot be converted at all; when the parent decides to trade, it sets up a new entity. Conversions are possible but expensive in time and money. Choosing the right entity at the start is materially cheaper than fixing the wrong one later.

Does the entity choice affect my residency permit?

Indirectly, yes. The investor residency permit looks at the investment quantum and the business activity. The entity holds the investment, so it must be in place before the permit application is filed. Some entity choices (Free Zone, JSC at meaningful capital) carry residency-friendly profiles; the Foreign Office Branch carries a representative visa rather than an investor residency. The residency briefing page covers this in more detail.

When does the entity decision need to be locked in?

Before any execution begins. The entity choice cascades into the Memorandum of Association, the capital structure, the bank account opening, the tax registration, the social-insurance file, and the residency strategy. Changing it later costs three to five times what getting it right the first time would have. The advisory deliverable that follows the discovery call sets out the analysis on paper before any incorporation filing begins.

For foreign investors

Five entity types. One right structure for your business.

A deeper comparison than the Market Entry overview. Minimum capital, foreign ownership, governance, tax treatment, audit obligations, and the case for and against each entity.

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The entity choice is where most foreign entrants go wrong, and the cost surfaces months later when the wrong vehicle is already in place. This page goes deeper than the pillar overview on the five vehicles that matter, with the side-by-side table, the decision tree, and the scenarios that recur on the discovery call.

Pending advisor validation

This page is sourced from public Egyptian regulatory references and our internal advisory notes. Our advisors are reviewing the specifics for final sign-off. Book a 30-minute call for advice tailored to your case.

Last sourced: 2026-05-17

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Decision tree

Which entity fits your case?

Most decisions resolve on one of the eight branches below. The first condition that matches your project is usually the right starting point. The discovery call covers the edge cases.

Two or more shareholders, general trading or services, primarily for the Egyptian or regional market
→ Limited Liability Company (LLC) — the default vehicle for most foreign entrants
Single founder wanting full limited liability, services or consulting, no immediate co-investor
→ One-Person Company (OPC)
Three or more shareholders, capital-intensive, plans for an external investor or eventual listing
→ Joint-Stock Company (JSC) — also mandatory for banking, insurance, and certain regulated activities
Manufacturing where the majority of output is exported, or a logistics hub serving COMESA, AfCFTA, GCC, or EU markets
→ Free Zone Company (Law 72/2017) — customs and tax exemption regime
Re-export or assembly with material customs exposure on inputs
→ Free Zone (Law 72) — the duty and tax-exemption case is decisive
Foreign parent wants Egyptian market presence for liaison, procurement, market research — no Egyptian-side revenue
→ Foreign Office Branch (Representative Office)
Bank, insurer, fund manager, or other activity that the law specifically reserves to a JSC
→ Joint-Stock Company (JSC) — there is no alternative
Holding entity for a portfolio of Egyptian subsidiaries
→ LLC — simpler governance and lower running cost than a JSC, which is overbuilt for holding

Side-by-side

The five vehicles, side-by-side

Minimum capital, foreign ownership, typical timeline, and the headline use case. Use the table to scan, then use the scenarios below to land on the right choice.

Entity type	Minimum capital	Foreign ownership	Typical timeline	Best for
LLC	EGP 1,000	100% in most sectors	7–14 working days	Most foreign businesses entering Egypt
One-Person Co.	EGP 1,000	100% in most sectors	5–10 working days	Single founders who want corporate protection
Joint-Stock	EGP 250,000 issued (10% on incorporation)	100% in most sectors	14–30 working days	Larger capital, multiple shareholders, fundraising plans
Free Zone (Law 72)	Varies by activity (set by GAFI Free Zone Board)	100%	30–60 days (requires GAFI Free Zone Board approval)	Manufacturing primarily for export
Foreign Office Branch	—	100% (always a branch of the foreign parent)	21–45 working days	Representation, market research, liaison — no revenue

LLC

Minimum capital: EGP 1,000
Foreign ownership: 100% in most sectors
Typical timeline: 7–14 working days
Best for: Most foreign businesses entering Egypt

One-Person Co.

Minimum capital: EGP 1,000
Foreign ownership: 100% in most sectors
Typical timeline: 5–10 working days
Best for: Single founders who want corporate protection

Joint-Stock

Minimum capital: EGP 250,000 issued (10% on incorporation)
Foreign ownership: 100% in most sectors
Typical timeline: 14–30 working days
Best for: Larger capital, multiple shareholders, fundraising plans

Free Zone (Law 72)

Minimum capital: Varies by activity (set by GAFI Free Zone Board)
Foreign ownership: 100%
Typical timeline: 30–60 days (requires GAFI Free Zone Board approval)
Best for: Manufacturing primarily for export

Foreign Office Branch

Minimum capital: —
Foreign ownership: 100% (always a branch of the foreign parent)
Typical timeline: 21–45 working days
Best for: Representation, market research, liaison — no revenue

Beyond the table

Governance and tax

The comparison table covers capital and timeline. The governance and tax differences below usually decide between two short-listed vehicles.

LLC

Governance: Two-tier optional. Manager(s) appointed by the shareholders; no statutory board required. Annual general meeting for accounts approval.
Audit: External audit mandatory.
Tax: Standard corporate income tax (22.5%). VAT 14% on most activities. Dividend distribution tax 10% (5% for listed entities).

One-Person Company

Governance: Single owner; single manager (the owner or an appointee). Decisions documented in a written resolution.
Audit: External audit mandatory.
Tax: Same corporate tax treatment as an LLC. Owner-employee remuneration follows the standard personal-income tax brackets.

Joint-Stock Company

Governance: Board of directors (minimum three members, majority Egyptian residents in some sectors). General assembly. Stricter shareholder-rights regime than the LLC.
Audit: External audit mandatory; statutory auditor appointed by the general assembly.
Tax: Standard corporate tax. Listed JSCs benefit from a reduced dividend tax (5%). Capital-market transactions on Egyptian Exchange-listed shares carry their own tax regime.

Free Zone (Law 72)

Governance: Same governance shapes as the LLC or JSC, with additional reporting to the GAFI Free Zone Authority.
Audit: External audit mandatory; additional GAFI-format reporting on output, exports, and customs.
Tax: Exempt from corporate income tax on Free Zone activities. Exempt from customs duty on inputs. Subject to an annual GAFI fee (1% of revenue for most activities; rate varies by zone and activity).

Foreign Office Branch

Governance: Branch of the foreign parent — no separate corporate governance. The branch manager is the local representative.
Audit: External audit of the Egyptian books mandatory. Annual filing with GAFI and the Companies Department.
Tax: No corporate tax on the branch itself when properly structured as a non-revenue representative office. Personnel and operating costs are funded from the parent and are not Egyptian-source income.

Real engagements

Common scenarios

Six engagements from the last two years (anonymised), with the entity choice and the reasoning. Most cases land on these patterns.

A Saudi industrial group wants to manufacture food-processing equipment, with 70%+ output going to the GCC and East African markets.
Choice: Free Zone (Law 72) inside an industrial-zone Free Zone.
Customs exemption on imported inputs, corporate-tax exemption on Free Zone activities, and a GAFI single-window licensing path. The binding constraint is the 30–60 day GAFI Free Zone Board approval window, not the entity setup.
A Turkish family office wants to hold three Egyptian subsidiaries (real estate, hospitality, agro-processing) under one roof.
Choice: LLC holding entity.
Three subsidiaries do not need the board and annual general assembly a JSC requires. The LLC's lower governance burden means lower running cost, and the structure positions the group cleanly for a future spin-off if a subsidiary is sold.
A European fintech wants to launch a payments product in Egypt under Central Bank licensing.
Choice: Joint-Stock Company (JSC).
Central Bank payment-services licensing requires a JSC; there is no alternative. The Central Bank sets a capital requirement in addition to the JSC's standard EGP 250,000 minimum.
A solo German consultant wants to set up a Cairo-based advisory practice serving GCC and European clients from Egypt.
Choice: One-Person Company (OPC).
Full limited liability without a co-shareholder. Simpler than an LLC and materially cheaper than a JSC. The OPC's standard EGP 1,000 minimum capital suits a services business.
A Chinese auto-parts manufacturer wants to scout the Egyptian market before committing to a full factory.
Choice: Foreign Office Branch (Representative Office) for the scouting phase.
No Egyptian-side revenue means no tax exposure. The parent can hire a local manager, run market studies, and sign a memorandum with potential distributors without locking in an entity choice. When the manufacturing decision lands in 12–18 months, a Free Zone (Law 72) entity replaces the Branch.
Two Egyptian-American co-founders want to launch a SaaS company with a US holding entity above.
Choice: Egyptian LLC owned by the US holding.
The standard tech-startup structure. The LLC carries the Egyptian engineering team and local revenue; the US Delaware C-corp above carries the global IP, global revenue, and cap table. The Egypt–US tax treaty governs the cross-border flow.

Go deeper

Go deeper on each entity

Each vehicle has its own detail page: document checklist, process steps, foreigner-specific notes, and per-entity FAQ. Open the one closest to your case and bring questions to the discovery call.

Most common for foreign investors

Limited Liability Company (LLC)

The default vehicle for most foreign investors entering Egypt — general trading, services, holding, and most commercial activities.

Read the LLC detail

Best for solo founders

One-Person Company (OPC)

Single-founder vehicle with full limited liability. Designed for solo founders who want corporate protection without a partner.

Read the One-Person Co. detail

For larger capital and multi-shareholder structures

Joint-Stock Company (JSC)

Capital-intensive vehicle for multi-shareholder structures, future fundraising, and regulated activities that require it (banking, insurance).

Read the Joint-Stock detail

For manufacturing and export

Free Zone Company (Law 72 of 2017)

Manufacturing and export hub structure under Investment Law 72/2017 — customs and tax-exempt regime for businesses primarily selling outside Egypt.

Read the Free Zone (Law 72) detail

For representation, no commercial activity

Foreign Office Branch (Representative Office)

Representation-only presence for foreign parent companies. Cannot generate revenue inside Egypt — purely market research, liaison, and brand presence.

Read the Foreign Office Branch detail

Common questions

What investors ask after this comparison

The questions below come up on almost every discovery call that starts with the entity decision.

Land on the right entity before the paperwork starts.

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