A very common way of establishing presence in Egypt by a foreign company is to open a branch or representative office.
However, a very important distinction between the two exists, whereas branch office can engage in commercial activity in Egypt and earn profits, and is licensed to perform activities similar to those carried out by the mother company in its home jurisdiction, a representative office is not permitted to perform commercial activity and earn profits but is limited to marketing research and/or promoting its mother company’s products and services and establish network of connections in Egypt. Our attorneys assist foreign companies to establish its representative office in Egypt providing consultations throughout the process.
As discussed under the Law Number 159, a foreign entity may establish a representative office in Egypt.
Accordingly, certain policies and regulations shall be relevant:
By law representative office does not perform any commercial activities, no profits are gained. Therefore, the entity is not subjected to taxes. However, the employment income is subjected to taxation
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