The Egyptian government constantly imposes new reforms and policies to encourage foreign and domestic new investment. The government made remarkable efforts to promulgate new investment laws that improve the climate for foreign direct investment by removing previous constraints and eliminating market barriers. Many companies and businesses are now thriving and growing their investments in Egypt.
Investing in Egypt
There has never been a better time to invest in Egypt; the new investment law safeguards investments to promote further development in Egypt through facilitation for foreign investors to receive the same legal treatments as Egyptian nationals. With approval from the Council of Ministers, foreign investors may now be granted preferential treatment. Egypt is also keen to encourage significant investments through incentives. For example, the new law provides deductions from taxable net profits according to a forthcoming investment map identifying investment areas as Sectors A and B. Investors will receive a 50% discount off investment costs in Sector A and a 30% discount off investment costs in Sector B for specified priority activities.
Services you need to safeguard your investments in Egypt
Starting a business could be easy, but maintaining the business success needs a significant amount of planning and professional services to help the organization thrive and secure the investments.
Incorporation Services
First, it is crucial to choose a suitable incorporation form for the business to ensure its success, prepare the "Articles of Incorporation", and file the documents to the appropriate governmental states. This will help protect business owners and founders from liability, establish perpetual existence, transfer ownership and help in gaining certain tax advantages.
Outsourcing Bookkeeping Services
Bookkeeping is one of the most critical factors in creating a strong business infrastructure and sustaining positive business growth. The bookkeeping services provide a comprehensive overview of the business's financial situation at any point in time, facilitating predicting its future performance based on historical data. Also, bookkeeping delivers precise data regarding the organization's performance, which allows stakeholders to make decisions for growth. It is used to assess your business performance and identify your strengths and weaknesses.
Bookkeeping is vital in staying in control of the business's finances through delivering reports to demonstrate income and expenses. On top of that, bookkeeping services help in tracking profit on monthly basis and offer a better understanding of the business cycles.
Payroll Accounting & Management Services
Another critical aspect that has a significant impact on the business is payroll services. As a new entity in a new market, there must be a strict policy for collecting and maintaining employees' financial data and records, whether local employees or ex-pats. In addition to payroll, accounting services are essential to effectively manage the business's expenses and track employees' wages and salaries, whether full-time, part-time or freelancers. For a new business starting in Egypt, hiring a team to handle payroll might be overwhelming, so it is always preferred to outsource it to a company with experience in the local market like Kreston.
Corporate Maintenance
Every business needs to keep up with all the legal and tax regulations and compliance updates in Egypt to ensure meeting all the requirements in a timely manner. With the laws changing frequently, a business needs to hire a partner to take care of all the legalizations and formal documents like annual shareholder's meetings, FDI filing (Foreign Direct Investment,) Stock registration and central depository system and other documents.
Feasibility Studies
Although Egypt is welcoming almost all sorts of investments, it is always a good idea to hire a local experienced company to conduct a feasibility study to ensure the success of the business and securing the investments. The feasibility study before initiating the investment will support in determining the profitability of the business venture. It is an imperative step to analyze the viability of the business.
Tax Compliance and Tax Due Diligence
Egypt is constantly amending tax rules to facilitate investments in the country; however, it is crucial to comply with all the local tax requirements and globally also for foreign investments. It is recommended to work with a local business partner like Kreston, who also has a global network and reach to ensure tax compliance and thorough due diligence.
Why do you need Ahmed Mamdouh & Co. Kreston Egypt as your business partner in Egypt?
While technically, anyone can start a business in Egypt with the help of the available resources through GAFI, ITIDA and other governmental platforms. It is always advisable to work with business partners who can provide guidance on handling investments in Egypt and provide essential services, like incorporation services, audit, bookkeeping services, and more.
Ahmed Mamdouh & Co. Kreston Egypt offers a wide array of customized services to meet every business's needs and requirements, thanks to our professional consultants. Our services include all the above plus much more like:
- Limited Review Services
- Feasibility Studies Services
- Corporate Finance Services
- Business Restructuring Services
- Insolvency Services
- Corporate Income Tax Services
- Tax Compliance and Tax Due Diligence Services
All our bookkeeping and accounting services and reports are compliant with local GAAP (Generally Accepted Accounting Principles) and IFRS (International Financial Reporting Standards). Our bookkeeping services are cost-efficient, helping businesses mitigate fraud risks and support new business owners to focus on their core business rather than consuming their time maintaining their bookkeeping internally. We implement the latest technologies to improve our performance, in addition to providing our clients with total control over their data through cloud services, to help mitigate the risks of a data breach.
If you are planning to launch a new investment or start a business in Egypt soon, get in touch with our team and book a consultation with our experts.