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No doubt that Egypt is recognized as an attractive market to invest in, thanks to its unique mix of demographics and commercial links to the broader world, strategic location at the gateway of trade and commerce for Southern Europe as well as Africa and the Middle East position and population of over 83 million makes it the largest Arab country a in addition to that the government ability to apply new package of incentives to the new and old investors.
Here are some key facts about doing business in Egypt.
Low Taxes and Customs
Tax system:
As a part of its ongoing efforts to make Egypt the most attractive investment destination in the MENA region, the government has clarified the tax code and corporate tax rates and personal tax rates 22.5%, and Sales Tax / VAT Rate is 14% .
Customs system:
In order to improve Egypt’s standing as a global manufacturing hub, the custom tariff ranged from 0 to 30% according to the Degree of manufacturing and from 0 to 10% on the imported machines.
Enabling Legislation
The regulatory and institutional frameworks governing investment in Egypt have seen significant overhauls in the past several years. The government has taken bold steps to slash red tape and make Egypt -one of the world’s oldest economies- also one of the easiest in which to do business. Some examples of reforms and protections based on the concepts of property rights protections, equality and ease of doing business include:
- Fast-track dispute resolution services for all investors.
- 100% foreign ownership of companies.
- Profit and dividend repatriation, dispute resolution and settlement mechanisms implemented.
- Comprehensive corporate governance principles which means the rules, processes, or laws by which businesses are operated, regulated and controlled, anti-money laundering, anti-trust and consumer protection laws.
- New commercial court system now rolling out nationwide to settle business disputes
- Incorporation time slashed from an average of several months to only 72 hours.
- One Stop Shop which contains 53 representative offices from different authorities, taking into consideration that the One-Stop Shops introduced at multiple locations throughout the country.
- Minimum capital requirements for LLC reduced to EGP 200.