Private Equity

Tickmark Bassem Adel Gaber & Co is a professional CPA Firm that may help you to operate and choose the right company track in Egypt based on your operation. We handle your business compliance for future reporting.

Private Equity in Egypt in a nut-shell

You may set up your company in Egypt as a foreign investor according to:

- Corporate company according to companies law.

- Corporate company according to Investment law.

- SMEs law no.152 for 2020.

- Free zones (Public or Private zones).

The governing laws:

Companies Law No. 159 of 1981: This foundational law outlines the regulatory framework for the incorporation, management, and dissolution of companies in Egypt, including governance aspects like shareholder rights and board responsibilities.
Investment Law No. 72 of 2017: The purpose of law is to protect foreign investors and provide tax incentives to particular industries.
SMEs Law No.152 of 2020:The Law defines SMEs based on turnover and capital, categorizing them into Medium Projects (EGP 50 million to EGP 200 million), Small Projects (EGP 1 million to less than EGP 50 million), and Micro Enterprises (annual turnover below one million pounds or capital below 50 thousand pounds). The purpose is to provide tax incentives to start-ups and Fin-tech entities.
Banking Law No. 88 of 2003 "For Banks": This law governs banking institutions, emphasizing robust governance structures for risk management and operational integrity.

Companies incorporation

Company shall has a licensed agent to incorporate the company to foreign investors (Lawyer and CPA accountant).
Basic documentation needed are (Passports of assigned managers, owners and a security clearance to both. Also, non confusion certificate to the proposed company name. In addition to brief of companies activities).
Some operation require private license, such as importing and exporting, medical,,, etc.
Tax registration and issuance of tax ID. That will require a company address (Rent of virtual or admin shall be available).
Article of association issuance including the shareholding structure and the company's agreement.
Issuance of commercial register and VAT certificate if applicable.
Open a social insurance file.

Private Offering

It is needed by individuals or corporate firms, which should be qualified investors (should have financial criteria or experience related to securities market.).
The private offering doesn’t require the issuance of a subscription prospectus which should be published in a daily newspaper, which required by the IPO.
Information memorandum is to be submitted and its contents have less detailed information compared to an IPO prospectus.

Trade in securities

For the trading in non-listed shares which will be offered to the public, it should be done through brokers licensed by EFSA and there are no requirements regarding trading in shares with pre-emption rights. Exceptions can be included in the articles of establishing the company.