A distinctive feature of small business in Egypt is the availability of cheap labor among both the local population and foreigners. This is a plus only if the latter work illegally.
With legal registration, you will have to expand the staff to 10 Egyptian employees per foreigner and cover everyone with insurance, the cost of which is within 500 Egyptian pounds per person, as well as make work visas for non-citizens of Egypt. Large hotel chains can afford such expenses. Small businesses are supported by contractual terms with employees. Salaries are formed mainly from a percentage of the company’s profits with a minimum monthly rate, which varies between 1,500-2,000 Egyptian pounds. On the one hand, this option is convenient for the owner to save money off-season. On the other hand, it is very similar to a voluntary return of profits to employees. This calculation option encourages the contractor to actively earn money, since you can survive on 1,500-2,000 pounds only with the most modest expenses in your own home. Despite the obvious advantages of starting a business, there are some restrictions for foreigners:
– Foreign companies (brands) are allowed to open branches or representative offices. But it is necessary to conduct business through an Egyptian intermediary company or assistant. Independent intermediary activity within Egypt will be prohibited.
– Egyptian legislation is categorical in relation to the age of the business owner – the latter must be 21 years old at the time of opening his own business. A businessman must also meet these parameters: capable, without mental disorders, with no criminal record.
– A person registering his own business must not work in the civil service.
There are also certain restrictions on specific areas of doing business:
– Import and activities of sales agents. To be included in the register of importers, you must be an Egyptian or live in Egypt (taking into account the time of residence in other countries) for at least 10 years after receiving citizenship. This is due to the desire of the Egyptian state to increase production volumes (by attracting investments), and not imports.