How much does it cost to start a company in Egypt? Is it worth it?
The Egyptian startup scene has seen a significant increase over the last couple years. According to Startup Egypt, there are currently around 1,500 companies operating in the country. This number is expected to double within the next two years.
In 2017 alone, the government invested $1.5 million into the startup ecosystem. As such, the costs associated with starting a new company in Egypt are relatively low. Startups should expect to pay between $10,000 and $50,000 for their initial setup.
If you’re thinking about starting your own business, here’s a look at what you can expect from the process:
How Much Does It Cost To Start A Company In Egypt?
Startup Egypt says that the average cost of setting up a company in Egypt ranges between $10,000 – $50,000. The lower end of this range comes from the cost of getting an official license, while the higher end includes legal fees but not licenses.
Startup Egypt also notes that the average time needed to get a company off the ground is 2-3 months. However, some companies take longer than others because they require more paperwork or need additional funding. Fundraising is the process of obtaining voluntary financial contributions for a particular project.
What Can You Do With Your Business In Egypt?
According to Startup Egypt, most businesses in Egypt fall under one of three categories:
• Service-based businesses like restaurants, cleaning services, etc.
• Ecommerce businesses like online shopping malls, e-tailers, etc.
• Tech-related businesses like app development, software engineering, etc.
Which Of These 3 Categories Should I Choose?
This largely depends on your skill set and knowledge base. If you have no experience in these fields, then you may want to consider focusing on service-based businesses. On the other hand, if you have expertise in certain areas, then you might be better suited to work in tech-related businesses.
Where Can I Find Funding For My Business?
Startup Egypt estimates that the average amount of capital required to launch a startup in Egypt is between $250,000 – $750,000. This figure includes money spent on marketing, hiring staff, renting offices, buying equipment, etc.
However, the exact amount will depend on many factors including the type of business you plan to operate, how big you want to grow, and whether you’ll use external investors or raise funds through crowdfunding platforms.
Should I Hire An Employee Or Work From Home?
While working from home can save you money, it can also make things difficult when it comes to managing employees.
For example, if you hire someone full-time, you’ll need to provide them with benefits (health insurance, paid vacations, sick leave) as well as a salary.
On the other hand, if your employee works remotely, you won’t need to worry about paying benefits, taxes, or any other expenses related to employment.
You could also choose to hire freelancers instead of full-time employees. Freelance workers usually don’t receive benefits and must cover their own health care premiums and taxes.