The long-waited New Egyptian Investment Law No. 72 of the year 2017 was finally passed by the Parliament and issued by the President, this law is expected to attract the investors for the incentives, guarantees, facilitations and advantages provided for in it.
A letter of guarantee is a type of a contract issued by a bank on behalf of a customer who has entered into a contract to purchase goods from a supplier and promises to meet any financial obligations to the supplier in the event of the default. The main purpose of this product is to guarantee payment to the beneficiary regardless of any objection or contestation from any other party.
Egypt after 2011 started to focus mainly on energy and renewable energy sectors as an integral part of the main projects in the sustainable development plan 2030. Egypt recently issued The Electricity Law No. 87 of the year 2015, and its Executive Regulation in 2016 (Ministerial Decree No. 230 of year 2016) and Renewable Energy Law No. 203 of the year 2014.
The Documentary Credit is an essential way for the execution of import & export trade operations, thus it has been requisite for the trade relations which has been defined by Article 341 of the Egyptian Commercial Law No.17 of the year 1999 which stipulates that: ‘Documentary credit is an Agreement by virtue of which the bank undertakes to open a credit upon the request of one of his clients (called ‘the remitter’) in favor of another person (called ‘the beneficiary’ guaranteed by documents representing the shipped goods or goods prepared for shipment’. Such documentary credit contract is separate from the contract because of which the credit was opened. And the bank shall remain alien to that contract. In case there is no special provision prescribed herein, the ICC Uniform Customs and Practices for Document Credits issued from the International Chamber Of Commerce shall apply.
The Transfer of Technology Contract is one of the contracts which are included in the Egyptian Commercial Law No. 17/1999, due to the new era of significant expansion in the field of technology contracts and the legal issues that face the transfer of technology processes at the international level as a result of the conflict of interests between the parties of these processes.
Collision is a maritime danger that frequently occurs especially after the increase of the number of ships sailing in the seas, multiplication of their velocities and unification of navigation lines. Such leads to mass damages to persons and properties.
The liquidation of companies in Egypt is governed by the Egyptian Companies Law. No. 159/1981, the law governs all the aspects of the companies’ liquidation including the reasons of liquidation, status of the company under liquidation, the appointment of the liquidator, responsibilities of the liquidator and revocation of the liquidator.
Throughout 30 years of experience in providing clients with immigration services in Egypt we found that many foreigners and companies are facing many issues in obtaining work permit in that’s due to the complicated process of receiving work permit in Egypt and involvement of numerous authorities.
Foreign companies or establishments may not establish scientific, technical, consulting or other services unless they have a commercial agent in Egypt in accordance with the Egyptian laws and regulations. Such companies and establishments can carry out any act of commercial agency or mediation only through a registered agent or commercial intermediary.
As with any other commercial activity, maritime insurance has an essential role in the overseas trade that involves transportation of goods from one country to another via ships, this type of insurance covers perils of the sea including the loss of ships, cargo, terminals and any transport or property by which the cargo is transferred.
Usually within the drafting process parties may neglect that a dispute may arise in the future regarding, for example, the validity of the contract, at this moment many questions can arise; what is the law governing this contract? To any jurisdiction parties will refer their dispute to? What will be the method of settlement in case the dispute arises? These clauses are very important clauses to be taken into account when drafting a contract to avoid legal uncertainty. In this article, it is briefly discussed what is meant by those clauses and how to be included into the contract.
On 5th of September 2016, the new Value Added Tax (VAT) Law in Egypt has been promulgated and published in the Official Gazette entering into effect on 8th of September 2016. The new Law no. 67 of year 2016 replaces the General Sales Tax (GST) Law no. 11 of year 1991 and any other legal provision contradicting with the new law shall be annulled.
Banking industry in Egypt is one of the oldest and largest industries in the region that plays a critical role in the development process in Egypt. It has been expanded by the “Open Door Policy”, adopted in the mid-seventies when foreign banks were allowed to proceed with their work in Egypt, aiming the analytical growth with an effective role for the private sector in promoting the economic performance. In order to achieve the goals of this policy, the banking law was published, stating the nature and operation of the three types of banks:
The Egyptian legal system is greatly influenced by the French Civil Code System. The main comprehensive code in Egypt is the Civil Code No. 131 for the year 1948 that covers vast types of transactions between individuals including personal rights, contracts, obligations and torts.
Foreign enterprises wishing to conduct business in Egypt may enter the Egyptian market by establishing a permanent legal structure. Foreign investors are permitted to establish various types of entities by the Egyptian law. These entities may have either permanent presence as Limited Liability Companies and Joint Stock Companies or temporary presence as Foreign Branch Offices and Foreign Representative Offices. Generally, investment in Egypt is subject to the Egyptian Corporate Commercial Law, however, if the entity invests in certain fields, it might obtain benefits from the Egyptian Investment Law.
A franchise agreement is the agreement concluded between a seller “Franchisor” and the buyer “Franchisee” by which the franchisor allows the franchisee to use its trade mark and provides him with the knowhow and the manual book of business (the rules, steps and manuals to run the business), while the franchisor is not liable for the franchisee’s illegal acts or conducts.