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Setting Up a Company in Egypt: 3 Key Issues Turkish Businesses Must Know

Setting Up a Company in Egypt: 3 Key Issues Turkish Businesses Must Know

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Setting Up a Company in Egypt: 3 Key Issues Turkish Businesses Must Know
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Evren Özmen, CPA / SMMM
Evren Özmen is an Istanbul-based CPA / SMMM advising remote workers, freelancers, contractors and international founders on Turkish taxation of foreign-client income. Founder, OZM Consultancy. Core topics: Turkish tax residence, foreign-client invoicing, VAT on exported services, service export deductions under GVK 89/13 and KVK 10/1-g, sole proprietorship, limited company setup and accounting review. Primary contact: info@ozmconsultancy.com Business website: https://ozmconsultancy.com This profile and Evrenozmen.com.tr provide general information. Case-specific review is required before applying any tax position.

Setting Up a Company in Egypt: 3 Key Issues Turkish Businesses Must Know

Thinking about expanding into Egypt? For Turkish textile companies, Egypt offers not only cost advantages but also strategic positioning. Here's what you must know before incorporating a company in Egypt.

What Type of Company Is Ideal?
For most Turkish textile firms, the most practical option is establishing a Limited Liability Company (LLC).

Is a Local Partner Required?
No. Turkish companies can establish 100% foreign-owned LLCs in Egypt.

What About Opening a Liaison Office?
Liaison offices can only conduct market research and feasibility studies.

Can a Turkish Company Open a Branch?
Yes, but the activity must be tied to a specific contract or project.

2. What Are the Steps and Requirements to Set Up a Company in Egypt?

Required Documents:
- Founding documents
- Notarized Articles of Association
- Security clearance forms

The Investment Service Center:
All incorporation processes go through GAFI’s Investment Service Center. Approval is usually within 1–2 days.

Trade Registry and Tax Number:
Commercial registration and tax number typically take another 3–4 business days.
Total process: 5 business days to 2 weeks.

3. What Is the Average Employer Cost per Employee in Egypt?

As of March 1, 2025, Egypt’s minimum wage is 7,000 EGP/month (~12,060 TL).
Total cost per employee including social security is approximately 15,900 TL.

ComponentEGPTL (approx.)
Net Salary7,00012,060
Employer Social Security (18.75%)1,3132,263
Total Employer Cost8,31314,323

Final Thoughts: Is Egypt the Right Move for Your Business?

Establishing a company in Egypt offers Turkish firms—particularly those in labor-intensive industries like textile—a competitive edge in costs and market access. But keep in mind: while legal procedures are clear, on-the-ground experience matters just as much as theoretical compliance.

If you are considering expanding to Egypt, ensure you're guided by a team with local know-how and cross-border tax expertise.

Need help navigating the legal and tax landscape in Egypt?
Our multilingual team supports Turkish businesses in cross-border structuring, setup, payroll, and compliance.

Reach out to our experts today to start your Egypt expansion with confidence.

info@ozmconsultancy.com

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