Global Upside helps businesses expand into Egypt by providing talent acquisition, human resources, accounting, payroll, tax, incorporation, and professional employer organization (PEO)/employer of record (EOR) services. Our comprehensive offerings create an end-to-end solution that helps you establish your business and optimize your operations, all while maintaining compliance with Egyptian laws and regulations.
The hiring and incorporation processes in Egypt are often complex, time-consuming, and involve numerous legal and compliance challenges. Global Upside simplifies these processes and lifts the compliance burden from your business. Our teams have the experience and expertise required to help you establish a legal entity in Egypt. We also offer PEO/EOR solutions to companies interested in hiring employees quickly, without setting up a legal entity in the country.
Egypt’s economy has seen the highest growth rates in the region for the past few years as the nation saw strong benefits from the workers abroad. The economy majorly relies on petroleum imports, natural gas, tourism, agriculture, and media.
- Egypt ranks as the 40th largest economy in the world in terms of nominal GDP.
- Egypt ranks as the 3rd largest economy in Africa.
- Egypt is Africa’s largest non-OPEC oil producer.
- Egypt ranks as the 3rd largest country in the continent for dry natural gas production.
Joint Stock Company (JSC) is an individual establishment that can either be a public or a private company. The investment in a JSC is divided into stocks of equal value; the obligation of the investor is limited to the estimation of his/her shares. Additionally, the investor is not accountable for the debts of the organization except within the constraint of those stocks. It may be a closed or a listed organization.
Limited Liability Company (LLC) is an individual entity that is the most common form of establishment. There must be at least two associates who can either be individuals or legal bodies.
One-Person Company (OPC) is a form of establishment that has a solo investor who can be either an individual or an official. The sole proprietor or founder of the company can appoint a manager to handle daily activities.
It takes approximately three to four weeks to establish a legal entity set up in Egypt, depending on the kind of establishment required.
The Egyptian Labor Law No. 12 aims at governing the employer-employee relationship in the private sector. Furthermore, Law No. 81, regulates the relationship of employer and employee with regards to the State’s civil servants.
Mentioned below are the terms to be included in Egypt’s employment contract:
- Name and address of both the employer and employee
- Job location
- Job title and description
- Employee’s qualifications and Social Security Number
- Salary and payroll cycle
- Probationary period (usually 3 months)
Under the Capital Market Authority Law No. 95 of 1992 and the Corporate Law No. 159 of 1981 all organizations in Egypt – both listed and unlisted, need to prepare financial reports in consonance with the Egyptian Accounting Standards (EAS). Additionally, a Certified Public Accountant has to audit these financial reports as per the Egyptian Auditing Standards. Joint assessments are required for financial institutions and banks.
Currently, Egypt does not have a law that administers the privacy of personal data. However, the Parliament is reviewing the Data Protection Draft Law which is expected to be published soon. It will provide security and protection for personal data and information of clients/consumers. The Data Protection Draft Law targets managing the processing and accumulation of personal information by service providers in the segment of information technology and communications as well as avoid revelation and handling of such data without the approval of the individual.
Anti-Bribery & Anti-Corruption Law
The Egyptian Anti-Bribery Law is enclosed in the Penal Code. Bribery is mentioned in Articles 103 to 111.
Bribery for Public Officials
i) Restrictive imprisonment.
ii) A monetary fine of up to EGP 1,000.
iii) Confiscation of received benefits.
iv) Seizing all benefits and privileges from the accused as prescribed in Article 25 of the Penal Code.
v) Removal from holding a position in the organization.
For Legal Entities
The Law does not govern the principle of criminal duty of lawful entities like corporations except concerning specific monetary crimes that do not apply to the crime of bribery. The Egyptian Court of Cassation has customarily decided that – Legal establishments are not criminally answerable for violations perpetrated by their delegates; the people who commit the crime are the ones who are accountable.
Bribery for Private Officials
i) Imprisonment for a minimum of 2 years.
ii) A monetary fine starting from EGP 200 up to EGP 500.
iii) Abstain performing work or obligations related to their position.
iv) Removal from holding a position in the organization.