What is the best initial capital amount you need to set for your company?
The law has established for each type of company a minimum amount necessary in initial capital. There are some companies like an LLC where the minimum capital required is quite low. However, for some business activities the minimum requirement is higher than others. For example, import export companies require an initial capital of 2M EGP.
How can you determine the appropriate initial capital for your business?
Everytime you increase the initial capital you put on paper, you also increase your governmental incorporation fees at GAFI. That is why it is important to keep your initial capital small.
However, some companies have strategic partners that could want a higher initial capital set at first. It’s important to ask your partners/ investors if they need a certain amount in initial capital.
Hekouky’s Legal Advice:
If there are no external or additional requirements, at Hekouky we usually advise business people looking to incorporate an LLC to set their initial capital at 18k. We have set this number because it allows for low incorporation fees. Also, it is not a number that is too small hence making your business entity seem not prestigious/ serious at all.
Contact Hekouky to register your company hassle free.