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.
This section discusses the case of foreign entities marketing their products to Egypt directly without the requirement of business entity incorporation in Egypt but with the help of certain form of representation.
Legal Framework :Post 25th of January, 2011 Revolution Direction following Revolution of 25th of January, 2011, Egypt has been heading towards the future in a slightly different track. Political and economic distress has led to significant changes
Import :Import is strictly regulated by the Egyptian government permitting Egyptian nationals only and fully owned and managed Egyptian companies to import into Egypt. For importation into Egypt for the purpose of trade, companies/individuals should register with the Register of Importers.
Commercial Agency Contract is considered to be one of the most common contracts in the commercial area. Such contracts are governed in Egypt by Law No. 120 of the year 1982 (and the Ministry of Economy’s Decision No. 342 of 1982).
Nowadays, foreign investment in Egypt is becoming easier, and is being facilitated by the new Investment Law No.72 of the year 2017(hereinafter referred to as the Investment Law) offers guarantees, simpler procedures, as well as incentives that include tax breaks and trims customs duties.
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 ( LLC) 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.
The Franchise system has become essential in all countries of the world in light of the global economic changes, which aims to open markets and drop barriers to goods and capital, providing the latest marketing systems, management, transfer of technology, expertise and job creation opportunities in most productive and service sectors.
Foreigners’ business activities are frequently conducted in Egypt by appointing an intermediate commercial agent or an authorized distributor by means of Commercial Agreements. Prior to the effective date of the new Commercial Code, Egyptian Commercial Agency Law was more liberal in comparison with many other jurisdictions. Commercial agency agreements in Egypt could be limited in time and, as a rule, the matter of compensation for termination was to be decided by the mutual consent of both parties.