One Person Company Example in Egypt: How It Works

If you're a freelance consultant, a software developer billing foreign clients, or a single founder tired of operating as a sole trader, the one person company (OPC) is probably what you're looking at. It's the solo-founder structure introduced into Egyptian law to give you a limited-liability shield without needing a second shareholder. Here's a concrete one person company example and what it costs.

Quick answer

A one person company example in Egypt looks like this: Ahmed, a software developer, forms "Ahmed Digital Solutions – One Person Company" with EGP 50,000 in share capital, registers at the General Authority for Investment (GAFI), gets a commercial register and tax card, and starts invoicing clients. He's the sole shareholder, sole manager, and his personal assets are protected if the company is sued. The OPC is governed by Law No. 4 of 2018, which amended the Companies Law (Law No. 159 of 1981) to allow single-owner entities. ^[1][2]

A worked one person company example

Let's make this concrete.

Ahmed wants to stop freelancing under his own name and set up a proper company. He picks the one person company structure because he doesn't want a nominee second shareholder, and he doesn't want unlimited personal liability.

Here's what his setup looks like:

• Name: Ahmed Digital Solutions – One Person Company (the "One Person Company" suffix is mandatory under Law 4/2018)
• Capital: EGP 50,000 (there's no statutory minimum, but banks and clients take you more seriously above EGP 10,000)
• Activity: Software development and IT consulting
• Shareholder: Ahmed, 100%
• Manager: Ahmed himself (an OPC can have one or more managers; the sole owner usually appoints themselves)
• Head office: A leased office in Maadi, Cairo

He submits the incorporation file to GAFI's one-stop shop. Processing usually takes 3 to 7 working days if the file is clean. Total government fees — commercial register, notarization, chamber of commerce, tax card — land somewhere between EGP 3,000 and EGP 6,000 depending on capital and activity. ^[3]

Honestly, the paperwork is the easy part. Picking the right activity codes is where people slip up — pick too narrow and you can't invoice for related work; pick too broad and you trigger extra licensing.

Watch out: The OPC name must include the phrase "One Person Company" (شركة الشخص الواحد) in all contracts, invoices, and official correspondence. Omitting it exposes you personally — Art. 4 bis of Law 159/1981 as amended. ^[1]

What liability protection actually gives Ahmed

This is the whole point of the structure.

If a client sues Ahmed Digital Solutions for a botched software delivery and wins EGP 2 million in damages, the claim is against the company's assets — its bank account, equipment, receivables. Not Ahmed's apartment, not his car, not his personal savings.

That shield has limits. If Ahmed:

• mixes personal and company money (pays his rent from the company account)
• signs contracts in his personal name without the "One Person Company" suffix
• commits fraud or gross negligence
• fails to keep proper books

…a court can pierce the corporate veil and go after him personally. The Egyptian Court of Cassation has consistently applied this doctrine where the single owner treats the company as an extension of themselves. ^[4]

Keep a separate bank account. Keep separate books. Sign everything with the company name. Boring advice, but it's what keeps the shield intact.

Tax treatment in this one person company example

Ahmed's OPC is taxed as a corporate entity, not as a sole proprietor. That means:

• Corporate income tax: 22.5% on net profits, under Law No. 91 of 2005 (Income Tax Law). ^[5]
• VAT: 14% if annual turnover exceeds EGP 500,000, under Law No. 67 of 2016. Software and IT consulting are taxable services. ^[6]
• Payroll tax and social insurance: If Ahmed pays himself a salary as manager, he withholds payroll tax and contributes to social insurance under Law No. 148 of 2019.
• Dividends: When Ahmed distributes profit to himself as the sole shareholder, dividend withholding tax of 5% applies (10% if the shares aren't listed and certain conditions aren't met). ^[5]

Compare that to staying a sole trader: sole-trader income gets taxed at progressive personal income tax rates up to 27.5%, but you dodge the dividend layer. Run the numbers for your bracket before you incorporate — the OPC isn't always the cheaper tax outcome. It's the cleaner liability outcome.

Costs snapshot (2026): Expect roughly EGP 3,000–6,000 in setup fees, EGP 2,000–4,000/year for accounting and annual filings, plus a notarized lease for your registered office. Capital can be as low as EGP 1,000 technically, but set it realistically — it shows on your commercial register.

When the OPC doesn't fit

The one person company isn't right for everyone.

You can't use it if you want to bring in a co-founder later without converting the entity (you can convert to an LLC, but it's a formal process with GAFI). You also can't use it for certain regulated activities — banking, insurance, and some financial services require specific corporate forms and higher minimum capital.

You probably shouldn't use it if your revenue is under EGP 200,000/year and you have no liability exposure. The overhead of corporate accounting, annual reports, and tax filings eats the benefit. Stay a freelancer, pay personal income tax, and revisit when the business grows.

One more thing most people get wrong: a natural person can only own one OPC in Egypt at a time. You can't stack three OPCs for three different ventures under your own name — you'd need LLCs or a different structure. Art. 4 bis of Law 159/1981. ^[1]

The structure works best for solo consultants, freelance professionals going formal, single-founder startups pre-seed, and small import/export operators who want corporate standing without a partner.

---