Elhawary Brothers LLC

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Frequently Asked Questions:.

Q: What are investment guarantees?

Companies and enterprises may not be nationalized or confiscated. It is not permissible by administrative means to impose ​guardianship on companies and establishments or to seize, seize, reserve, freeze or confiscate their assets.

No administrative authority may interfere in the pricing of the products of companies and enterprises or determine their ​profitability. No administrative authority may revoke or suspend the license to use the real estate that has been licensed to ​the company or establishment; all or some of it; except in the case of violating the conditions of the license and the decision ​to revoke or suspend is issued by the Prime Minister .... and the concerned party may appeal against this decision before the ​Administrative Court within thirty days from the date of its announcement or knowledge of it.

Owning the land and real estate necessary to carry out or expand its activity ....., except for land and real estate located ​in areas designated by a decision of the Council of Ministers, provided that this decision specifies the conditions and rules of ​disposal thereof. Companies and establishments may import on their own or through others what they need for their ​establishment, expansion or operation of production inputs, materials, machinery, equipment, spare parts and means of ​transportation appropriate to the nature of their activity, without the need to register them in the importers' register, and ​companies and establishments may export their products on their own or through intermediaries without a license and ​without the need to register them in the exporters' register.

Q: Is it permissible for a foreign company to establish a commercial representation office in Egypt?

Yes, a foreign company may establish a representative office - liaison - scientific office - technical office - regional office - for it ​in Egypt, and the role of the representative office is limited to conducting a market study and studying the production ​possibilities of the foreign company in Egypt without practicing any commercial activity, and if the commercial representation ​office practices any activity contrary to its purpose, it shall be removed from the register prepared for that, It may also be ​removed in the event that it violates the laws of the country or submits false data, and the representative office may not ​enter any tenders or auctions in its name or engage in any commercial activity, although the parent company of the ​representative office may enter into tenders and auctions. Because it does not engage in commercial activity, it is not subject ​to tax on commercial and industrial profits, and the director may be Egyptian or foreign.

It is known that representative offices are subject to inspection to access their books and documents to ensure that they ​comply with the provisions of the law, and the representative office annually notifies the Companies Administration of the ​names of its employees, their jobs, nationalities, salaries and the work it undertook for the past year, and the ​representative office must bear the same name as the parent company because it is considered part of it.

Q: Is it permissible to establish a branch of a foreign company in Egypt?

Yes, foreign companies may open a branch in Egypt, to carry out all works of a contractual nature in Egypt, such as ​contracts of contracting, mining, petroleum, export and other works that the parent company abroad has concluded with ​one of the companies or parties inside Egypt, and it is registered in the commercial register after obtaining the approval of ​the competent authorities, and the branch of the foreign company must have an auditor, and the branch of the foreign ​company in Egypt that carries out its activities without registration in the commercial register is administratively closed and ​the General Administration of Companies has the right to inspect the branches of foreign companies in Egypt and access ​their books to ensure their compliance with the rules of the foreign company in Egypt. Article (311) of the same regulation ​also stipulates that the branches of foreign companies must have an auditor. Article (311) of the same regulation stipulates ​that the branches of foreign companies must have an auditor.

Q: What are the main characteristics of a joint stock company?

A joint stock company is a company whose capital is divided into shares of equal value and tradable, and does not address ​the name of one of the partners, but its name is derived from the purpose of its establishment, and the joint stock company ​is distinguished from other companies by the following:-

First, Capital of the company:-

Its capital is characterized by its size compared to the capital of other companies. The capital of the joint stock company is ​divided into parts of equal value, each of which is called a “share” and these shares are represented in negotiable ​instruments, and then these shares may be disposed of without having an impact on the life of the company. The company's ​capital is divided into paid-up capital, issued capital, and authorized capital.

Secondly, the liability of the shareholder is limited :-

The liability of the shareholder in the joint stock company is determined by the nominal value of his shares in the capital of ​the company, and as a result, the shareholder partner does not acquire the status of a merchant simply by entering the ​company, unlike the solidarity partner in the solidarity company, and the bankruptcy of the company does not lead to the ​bankruptcy of the shareholder and This brings its position from this angle closer to the position of the recommended partner ​of the simple recommendation company. III/Management: The company s administration is also based on the involvement of ​multiple executing bodies, some of which have oversight and oversight, and there is a regular management report that ​meets every year. There is an auditor who controls the companys finances and verifies the regularity of its accounts, and ​there is finally an extraordinary General Assembly that meets when the company s system or for the purposes of the ​establishment contract.

Q: Limited liability company. What are its characteristics?

A firm with equal responsibility is a corporation that consists of at least two partners, not more than 50 partners, and the ​purpose is to limit this form to small and medium-sized enterprises. Solidarity.

Q: What's her profile?

It's a company based on personal consideration, usually composed of a few people who are related to kinship, friendship or ​knowledge, trust each other, in its ability and efficiency, and when it threatens personal confidence.

Characteristics of Solidarity.

Solidarity, as well as full and absolute liability of partners, is characterized by the name of one or more partners in the ​company address, the non-negotiable share of the partner, and by all the trading partners.

First, Absolute liability for the company s debts. So the Solidarity Company asks personal and absolute responsibility for the ​company's debts as if they were its own debts, i.e. he asks for his share of capital, but the company's liability is determined.

Second, enter the company's name in the company's address. The name of the Solidarity Company consists of one or more ​partners, with the indication that there is a company. In order to inform others who are made up of the company and who ​are relied on to deal with the company, given their personal and solidarity responsibility for the company's debts.

Third, the company s share is incapable of moving. Solidarity is based on personal consideration and trust among partners, ​so as a general rule, the company may not waive its share with or without the consent of other partners, and therefore the ​shares may not be negotiable.

Forth, Partner acquires a trader.

Each partner in the company acquires the status of a dealer, as the common partner asks personal and solidarity ​responsibility for the company s debts, which makes him at the center of his own business.

Fifth, Director of the Solidarity Company.

The Solidarity Company is appointed a manager or more of the partners, usually the principal and most business associate, ​and the company contract provides for the authority of the Director in between business and conduct. VI. Distribution of ​profits and losses Sharing of profits and losses originally subject to the distribution of profits under the terms of the contract ​of the company. Simple recommendation company.

Q: What are its characteristics?

Two co-partner teams are in charge of solidarity, indefinite corporate debt and acquiring the status of a dealer and ​recommended partners who only ask for company debts within the limits of their shares. First company address. The simple ​recommendation company name consists of one or more co-partner names and the company's address may not include the ​name of a recommended partner, and if the firm's name is not intercepted, Second: the recommended partner does not ​acquire the status of a dealer.

A common partner in the simple recommendation company acquires the status of a dealer as soon as he has joined the ​company and if not before, the recommended partner does not acquire the trader s status. III: Limited liability of the ​recommended partner. The co-partner of the recommended company asks for personal responsibility and solidarity, and the ​recommended partner only asks for its share of capital, and therefore his share may not be merely in the company. The ​limited responsibility of the recommended partner implies that the bankruptcy of the recommendation company does not ​entail bankruptcy of the recommended partner, if necessary.

IV. Management of the simple recommendation company. A simple recommendation company is managed by a manager or ​more, and the manager may be a partner or a foreigner, but in all cases the manager may not be a recommended partner. ​Mines, quarries and navigation.

Q: What is the law regulating research and exploitation?

Act No. 198 of 2014 regulates the search and exploitation of the mines, shops, navigation and the executive regulations of ​Prime Minister No. 1657 of 2015, and the state's responsible for the search and exploitation of the reservoirs. Mineral ​wealth.

Q: What does it matter?

The metallic metal light, the oldest natural wealth, the energy, the most important of all, is the raw metal, the energy, ​the energy, the energy, the raw, the energy. Gold and oil.

Q: Why don't Egyptians invest in their search and extract them?

In fact, this subject has many reasons why Egyptians are reluctant to invest in this area, including economic reasons such as ​the size of required investments, risk capital, crude deficiency, gold price instability, time-dimension and revenue. Legal ​reasons are legislative complexities, the nature of legal conventions, the length of time required to terminate the ​proceedings, and the many government agencies dealing with them.

Technical reasons such as limited and sometimes inaccurate initial information are the limited availability of drilling ​companies and service companies in general accompanying research and exploitation, and professional reasons such as lack of ​geologists, professional mining engineers and limited employment.

Relatively different causes for petroleum research and extraction may be for “gold” mining, but in general these are the ​main reasons for Egyptian reluctance to invest in these areas because all other reasons can be overcome. Petroleum and ​gold are the most important financial obligations paid by companies after bidding for their search and extraction.

Signature grant.

The investing company shall pay an amount of money to the Authority on the date of entry into force of the Convention by ​the competent minister, the head of the body and the head of the investing company.

Exploitation Contract Grant. An investing firm pays the Authority money when the first part of the area is converted from ​the search to an exploitation contract after the feasibility study on that part and commercial discovery.

Extension grant for the exploitation contract. A corporation investing in the Authority shall pay a sum of money to the ​Authority when approving the period of the exploitation contract.

Starting with commercial production, the joint company (gold-producing) pays the Government a percentage of the total ​amount of rough produced during the exploitation period, including any extension.

Q: What is the meaning of agreements (agreements and contracts) of oil and mining?

Cash or in-kind payments committed to the performance of the host State under the agreement (contract Convention) for ​each production unit of petroleum mineral ore received from the concession zone. This means that the investor has a profit or ​not, it pays the total production, not the net profit, and pays the land holder, whether it is a company, governor or the ​same State. And there are two criteria for determining royalty. I/Determined financial amounts are for each specific unit of ​gross production and this is the criterion that has been introduced in petroleum conventions.

This is the standard that has been applied in the profit participation conventions. II/ The royalty is a percentage of the total ​productive ore, which is the standard currently in force in the production participation conventions.

Some States have taken a common criterion where the host State receives a particular amount and a percentage for each ​productive unit. Egypt has entered into mining and petroleum conventions with criterion I and II. The contractor and the ​employer,

Q: what are the most important reasons for their disagreement?

The employer delayed the delivery of the site to the contractor.

Delay in payment of cash on schedule as well as the benefits thereof.

Change of design or specifications at the owner's request.

Delays and costs resulting from an order by the owner to stop the progress of work for certain tests required by the owner ​outside the contract. Cost of implementing, re-implementing or repairing the defects of any other errorsThe cost of carrying ​out the additional work, re-executing or repairing the defects of any other errors for which the contractor is not considered ​to cause.

The contractor's delay in receiving or delaying the delivery of the work site after the completion of the work. Insufficient ​trained manpower. The contractor suspends the business or reduces performance rates.

Delay and bug repair expenses in the scales and dimensions of the business.

Third party claims for damage to others. Loss resulting from change in exchange rate.

Change in cost due to change in post-commencement legislation. Changes in labour costs, materials or any other things ​affecting the cost of business execution. Events beyond the parties' control make the performance of the contract impossible ​or burdensome.

Q: What are the main reasons for the contractor's delay in carrying out the work?

- Failure to complete the drawings. - Lack of clarity of conditions and specifications. - High prices in construction materials. - ​Deficit in the supply of construction materials and lack of availability in the market. - Delay in execution by other contractors ​(subcontractors) associated with the operation. - Owners' interventions. - Additional work. - Modifications of quantities or ​items of business. - Delayed delivery of the site. - The appearance of groundwater for which no price has been set in the ​original contract. - Workers' disturbances. - Difficult weather conditions such as rains and storms and increased weather ​temperatures. - Non-disbursement of extracts within the times specified in the contract. - Objection to giving consent for ​necessary things at work. - The owner's bankruptcy or dissolution of the owner company. - Giving unclear instructions to the ​contractor that are difficult to implement.

Q: What are the advantages of resorting to it as a means of ending disputes?

1. Simplicity and speed of arbitration proceedings away from court proceedings that are characterized by their length and ​complexity because arbitration shortens the degree and stages of litigation.

2. Flexibility of arbitration whereby disputes are allowed to form it in a manner commensurate with their potential and ​enable them to choose the type of arbitration they wish to follow. It is either free arbitration, institutional arbitration, ​reconciliation or rule of law.

3. The settlement of the dispute is achieved on a specialized technical basis, such as the case of arbitration in disputes of a ​technical nature.

Such a dispute often requires a person with scientific and technical qualifications, rather than being submitted to a court ​which often refers it to an expert for technical opinion.

4. Confidentiality of Ijra- The confidentiality of arbitration procedures is of utmost importance in the field of commercial ​transactions, as it relates to professional or economic secrets, the disclosure of which could harm the position of the parties in ​dispute. Additionally, this confidentiality limits the escalation of the dispute and may lead to an amicable settlement, unlike ​litigation methods before courts, where the principle of publicity typically governs all procedures.

5 - It provides confidence and reassurance to foreign investors because arbitration aligns with applicable international rules, ​and foreign investors fear political interventions that may hinder investment.

Q: What is the difference between voluntary arbitration and mandatory arbitration?

Voluntary arbitration is when both parties resort to it of their own free will as a means to resolve disputes arising from ​their transactions, usually by including an arbitration clause in the contract that governs their relationship, or by drafting an ​arbitration agreement between the parties when the dispute arises. On the other hand, mandatory arbitration is that ​which is imposed on the parties; in some disputes, the law stipulates that they must be subject to arbitration, and the ​parties cannot resort to ordinary courts initially, as is the case in the public sector arbitration system, where disputes ​between any public company and any other public company or governmental entity must be submitted to an arbitration ​body established by law. An example of this is arbitration concerning sales tax, where disputes are submitted to preliminary ​committees or higher committees for resolution. However, the Supreme Constitutional Court ruled that this mandatory ​arbitration removes the citizen from their natural judge and is therefore unconstitutional, leading to the repeal of this ​provision from the law.

Q:What are the areas in which arbitration is not permitted?

Arbitration is not allowed in matters that cannot be settled amicably, most of which relate to public order, such as:

1- Criminal matters: Parties cannot present an individual for criminal trial before arbitrators, nor can an arbitrator impose a ​fine on a witness who refuses to appear to testify, as these matters fall under the jurisdiction of the courts. However, ​arbitration may be conducted regarding the financial consequences resulting from a crime, such as conducting arbitration to ​assess the compensation owed to the victim.

2- Personal status matters related to public order.

Criminal matters: The parties do not have the authority to bring someone to trial before arbiters in a criminal case, nor can ​the arbitrator impose a fine on a witness who fails to appear to testify, as these issues fall under the jurisdiction of the ​courts. However, arbitration regarding the financial consequences resulting from a crime is possible, such as conducting ​arbitration to determine the compensation owed to the victim.

2- Personal status issues related to public order: Examples include personal and family status matters that cannot be ​interfered with. Nationality cannot be subject to arbitration for proving or denying it, as well as a person's right to their ​name, establishing lineage, and statutory shares in inheritance.

3- Issues related to political rights: Such as the right to vote, the right to run for office, and freedoms of opinion and press, ​among others. However, arbitration is also permitted regarding compensation for violations of any of these freedoms.

Q: Grounds for annulment of the arbitration award: What are the circumstances for filing it before the court?

- The absence of an arbitration agreement, its invalidity, or its susceptibility to annulment, or the expiration of its term.

- If one of the parties to the arbitration agreement was incapacitated or lacked full capacity at the time of its conclusion.

- If one party to the arbitration could not present their defense due to not being properly notified of the appointment of ​their arbitrator or the arbitration procedures, or for any other reason outside their control.

- If the arbitration award excluded the application of the law that the parties agreed to apply to the subject of the ​dispute.

- If the arbitration panel was formed or the arbitrators were appointed in a manner contrary to the law or the parties' ​agreement.

- If the arbitration award ruled on matters not covered by the arbitration agreement or exceeded the limits of that ​agreement.

- If there was a fundamental error in the arbitration award or if the arbitration procedures were invalid in a way that ​affected the award; the court considering the nullity claim must annul it even sua sponte if the award contains provisions ​that violate public order in the Arab Republic of Egypt.

Q: Can the arbitrator be held accountable and asked for compensation in case of their error?

The arbitrator is not compelled to accept the arbitration task; however, if they do accept it, they must complete it in ​accordance with the law, or else they will be liable for compensating any damages that may be incurred by one of the ​parties due to improper execution. The general rule in civil liability is that any error causing harm to another leads to active ​liability for compensating the harmed party for the damage suffered. Since the arbitrator is merely an ordinary person ​undertaking a specific judicial task based on the choice of the disputing parties, they are responsible for their mistakes. The ​general rules do not require the error to be serious for professional liability to arise. In summary, the arbitrator is liable for ​their mistakes even if they are not serious, and the arbitrator's liability exceeds that of a judge; the general rules require ​that a judge's professional liability arises only when the error is serious, whereas an arbitrator's liability can arise even if the ​error is not serious.

- Confidentiality of arbitration procedures. This confidentiality is of utmost importance in the field of commercial transactions, ​as it relates to professional or economic secrets, the disclosure of which may harm the position of the parties to the dispute. ​This confidentiality also limits the amplification of the dispute and may lead to an amicable settlement, unlike litigation ​methods before the courts, in which the principle of publicity usually prevails in all its procedures.

- It gives confidence and reassurance to the foreign investor because arbitration is consistent with applicable international ​rules, and because the foreign investor fears political interventions that may lead to obstructing investment. Optional ​arbitration and compulsory arbitration.

Q: What is the difference between them?

Optional arbitration is that which the two parties resort to of their full will as a means of resolving any dispute arising from ​their transactions, and it is usually done by writing an arbitration clause in the contract that regulates the relationship ​between them, or by drafting an arbitration agreement between the two parties when the dispute occurs. Compulsory ​arbitration is the arbitration that is imposed on the parties. In some disputes, the law stipulates that they are subject to ​arbitration and the parties may not resort to the regular judiciary initially, as is the case in the public sector arbitration ​system, where disputes between any public company and any public company and any government agency, institution or ​public body must be presented to an arbitration body formed in accordance with the law.

An example of this is also arbitration regarding sales tax, as its dispute is presented to primary committees or higher ​committees for adjudication. However, the Supreme Constitutional Court ruled that this arbitration is compulsory and that ​it distances the citizen from his natural judge, and therefore it is considered unconstitutional, and thus this article was ​cancelled from the law.

Q: What are the areas in which arbitration is not permissible?

Arbitration is not permissible in matters in which reconciliation is not permissible, most of which are matters related to public ​order, such as: -

1- Criminal matters: The parties do not have the right to bring a person to criminal trial before arbitrators, and the ​arbitrator does not have the right to impose a fine on a witness who refused to appear to testify. These are matters within ​the jurisdiction of the courts, but arbitration may be conducted on the financial consequences of a crime, such as arbitration ​to estimate the compensation due to the victim.

2- Personal status matters related to public order: Examples include matters of personal and family status that may not be ​touched upon. Nationality cannot be arbitrated to prove or deny it, as well as a person’s right to his name, proof of lineage, ​and prescribed shares in inheritance.

3- Issues related to political rights: such as the right to vote, the right to run for office, freedom of opinion and the press, ​etc. However, arbitration may also be conducted regarding compensation for abuse of one of these freedoms. A lawsuit to ​invalidate an arbitration award:

Q:What are the cases in which it can be brought before the judiciary?

The absence of an arbitration agreement, its invalidity, its ability to be invalidated, or its expiration. If one of the parties ​to the arbitration agreement was incapacitated or partially incapacitated at the time of its conclusion. If one of the parties ​to the arbitration is unable to present its defense because it was not properly notified of the appointment of its arbitrator ​or of the arbitration proceedings or for any other reason beyond its control.

If the arbitration award excludes the application of the law that the parties agreed to apply to the subject matter of the ​dispute.

If the arbitral tribunal was formed or the arbitrators were appointed in a manner contrary to the law or to the ​agreement of the parties.

If the arbitration award decides on matters not covered by the arbitration agreement or exceeds the limits of this ​agreement.

If the arbitration award is invalid or the arbitration procedures are invalid, it affects the award and the court before ​which the invalidity claim is heard must rule on it, even on its own initiative, if the award includes something that violates ​public order in the Arab Republic of Egypt.

Q: Is it permissible to refer to the arbitrator and demand compensation from him in the event of his error?

The arbitrator is not forced to accept the arbitration mission. If he accepts it, he must complete it in accordance with the ​correct law, otherwise he will be liable for compensation for the damages that may be incurred by one of the parties as a ​result of the improper implementation. The general rule in civil liability is that any error that causes harm to another leads to ​effective liability for compensating the injured party for the damage he has suffered. Because the arbitrator is merely an ​ordinary person who performs a special judicial mission based on the choice of the two parties to the dispute, he is liable for ​his error. The general rules do not require the seriousness of the error for professional liability to be established. In short, he ​is liable for his error even if it is not serious, and the arbitrator's liability exceeds the judge's liability;

General rules require that the judge’s professional liability be serious, while the arbitrator’s liability arises even if the error ​is not serious.

Q: Why is confidentiality important in arbitration procedures, and how does it differ from court litigation?

Confidentiality in arbitration procedures is a critical aspect, particularly in commercial transactions. It plays a vital role in ​safeguarding professional, trade, or economic secrets that, if revealed, could severely harm the competitive position or ​business interests of the disputing parties. For instance, in disputes involving patented technology, disclosing confidential ​details during litigation could allow competitors to misuse that information, damaging the business.

In arbitration, all proceedings, documents, and evidence are kept confidential unless both parties agree otherwise, or the ​law mandates disclosure. This confidentiality promotes more open communication between the disputing parties and can ​encourage settlements. It also helps maintain the business reputation of the parties involved by avoiding public scrutiny of ​the dispute, unlike court litigation where the principle of publicity applies under Article 268 of the Egyptian Code of Civil ​Procedure. Court proceedings are generally open to the public, meaning that sensitive business information may become ​accessible to third parties, including competitors and the media.

Q: What are the main benefits of arbitration for foreign investors, and how does it align with international standards?

Arbitration offers several distinct benefits, particularly for foreign investors:

Alignment with International Rules: Arbitration is governed by internationally recognized rules, such as the UNCITRAL Model ​Law on International Commercial Arbitration (United Nations Commission on International Trade Law), which many countries, ​including Egypt, have adopted with modifications to fit their legal systems. These internationally standardized rules ​provide a sense of consistency and predictability for foreign investors, making them more comfortable in choosing arbitration ​over domestic courts.

Avoidance of Political Interference: Foreign investors are often concerned about political interference in judicial processes, ​especially in countries where the judiciary might not be fully independent. Arbitration helps mitigate these concerns by ​providing a neutral and impartial forum that operates independently from local politics. This neutrality is enshrined in ​Egypt's Arbitration Law No. 27 of 1994, which stipulates that arbitral tribunals must act independently of the state’s ​political interests.

For example, a foreign investor in Egypt might prefer arbitration when entering a joint venture with a local company to ​avoid any potential political influence on the dispute resolution process.

Q: What is the difference between optional and compulsory arbitration, and how are they applied in practice?

Optional Arbitration: Optional arbitration, also known as consensual arbitration, occurs when both parties voluntarily agree ​to submit their disputes to arbitration, either by including an arbitration clause in their original contract or by drafting an ​arbitration agreement once the dispute arises. This is the most common form of arbitration in commercial transactions. For ​example, in international sales contracts, it is common to find arbitration clauses specifying that any disputes arising from the ​contract will be resolved through arbitration under the rules of the International Chamber of Commerce (ICC) or another ​recognized arbitration institution.

Compulsory Arbitration: In contrast, compulsory arbitration is mandated by law for certain types of disputes. In Egypt, ​compulsory arbitration applies in specific sectors, such as disputes involving public sector companies or government agencies. ​Law No. 203 of 1991 regulating the public business sector requires disputes between public sector companies and between ​public sector companies and government bodies to be resolved through arbitration, rather than through litigation.

For example, disputes related to sales tax may be subject to compulsory arbitration before specialized committees as ​outlined in the Sales Tax Law No. 11 of 1991. However, it is important to note that compulsory arbitration has been criticized, ​and the Supreme Constitutional Court of Egypt has ruled in certain cases that compulsory arbitration, when imposed ​without the parties’ consent, is unconstitutional because it deprives individuals of their right to be heard by a natural judge, ​a principle guaranteed under Article 97 of the Egyptian Constitution.

Q: What are the specific matters in which arbitration is not allowed, and why are these exceptions in place?

Arbitration is not permitted in cases where public order is at stake, or where reconciliation is legally prohibited. The ​rationale behind these restrictions is that certain legal matters, particularly those affecting public interest, should not be ​subject to private dispute resolution mechanisms like arbitration.

Criminal Matters: Arbitration cannot be used to adjudicate criminal cases. For instance, crimes such as theft, fraud, or ​assault must be dealt with by the criminal courts. This is because criminal justice serves public interests, including maintaining ​law and order, and involves penalties like imprisonment or fines, which arbitrators are not empowered to impose. However, ​arbitration can address the financial consequences of criminal acts, such as compensation claims for damages caused by the ​crime. For example, if a company is defrauded, it may pursue arbitration to recover financial losses, but the criminal liability ​of the perpetrator will be handled by the state’s criminal courts.

Personal Status Matters: Matters related to personal status, such as nationality, lineage, inheritance shares, and rights to ​names, cannot be arbitrated. These issues are regulated by the Egyptian Personal Status Law, which governs matters such ​as marriage, divorce, and inheritance, and are considered public order matters. Arbitration in these areas would conflict ​with established legal principles meant to protect societal interests and individual rights.

Political Rights: Political rights, including the right to vote, freedom of opinion, and press freedom, are also excluded from ​arbitration. These rights are considered part of the fundamental rights of citizens, and their enforcement or interpretation ​must be left to the public courts. However, if a violation of these rights leads to financial damages (e.g., if a journalist is ​wrongfully terminated for expressing an opinion), the compensation aspect can be resolved through arbitration.

Q: Under what circumstances can an arbitration award be invalidated, and what legal grounds support this invalidation?

An arbitration award may be invalidated if specific legal grounds are met. The invalidation process is regulated by Article 53 of ​Egypt's Arbitration Law No. 27 of 1994. The following are key grounds for invalidating an arbitration award:

Absence or Invalidity of the Arbitration Agreement: If no valid arbitration agreement exists between the parties, or if the ​agreement is deemed invalid (for example, if it violates public order or contains illegal provisions), the arbitration award can be ​nullified.

Incapacity of a Party: If one of the parties was incapacitated at the time of entering into the arbitration agreement (e.g., if ​the party was a minor, legally incompetent, or under duress), the award can be challenged. This is based on Article 44 of the ​Egyptian Civil Code, which governs the legal capacity of individuals and their ability to enter into contracts.

Denial of the Right to Present a Defense: If a party was not properly notified of the arbitration proceedings or was unable to ​present a defense due to circumstances beyond their control, this could lead to the invalidation of the award. Fair notice and ​the right to be heard are fundamental procedural safeguards under Article 54 of the Egyptian Arbitration Law.

Non-Compliance with the Arbitration Agreement: If the arbitral tribunal issued an award that exceeded the scope of the ​arbitration agreement (e.g., by deciding on matters not covered by the agreement), the award can be partially or fully ​invalidated.

Improper Constitution of the Tribunal: If the arbitral tribunal was not constituted in accordance with the arbitration agreement ​or applicable law, the award can be invalidated. For instance, if the arbitration agreement specifies a particular arbitrator, ​and that arbitrator was not appointed, this could be grounds for nullification.

Violation of Public Order: If the arbitration award violates public order in Egypt, it can be nullified. Public order violations ​typically occur when the award conflicts with fundamental legal principles, such as those enshrined in the Constitution of Egypt, ​or when it addresses matters that are not arbitrable, such as criminal or political rights.

Q: What is the extent of an arbitrator's liability, and how is it determined in Egyptian law?

Under Egyptian law, arbitrators are expected to perform their duties with diligence and to adhere to the legal principles ​governing arbitration. While arbitrators are not obligated to accept an arbitration mission, once they do, they must ensure ​that the arbitration process is conducted in accordance with the law and the terms of the arbitration agreement. Arbitrators ​can be held liable for any errors or misconduct during the arbitration process.

General Liability: Arbitrators are held to a high standard of accountability. They are liable for any actions that result in harm ​to one or both of the parties involved. This liability is based on the general principles of civil liability in Egypt, as established in ​Article 163 of the Egyptian Civil Code, which states that any error that causes harm to another obliges the person at fault to ​compensate the injured party.

Liability for Serious Misconduct: While arbitrators are generally liable for errors, their liability is particularly pronounced in cases ​of serious misconduct, such as bias, conflict of interest, or gross negligence. Unlike judges, who are only held liable for serious ​errors in extreme cases (e.g., if a judge intentionally disregards the law), arbitrators can be held accountable for even minor ​errors if those errors result in damages to the parties.

Examples of Arbitrator Liability: For instance, if an arbitrator neglects to notify a party of an important procedural step, and ​as a result, that party is unable to present their defense, the arbitrator may be liable for any harm caused by the resulting ​arbitration award. Similarly, if an arbitrator fails to apply the correct law as stipulated in the arbitration agreement, the ​award could be invalidated, and the arbitrator could be held responsible for any damages incurred by the parties due to the ​invalid award.

This expanded version includes additional examples, legal references, and detailed explanations. Let me know if you'd like to ​continue, or if you'd prefer adjustments to specific sections!

Q: How does arbitration protect foreign investors from political interference, and what legal frameworks ensure this ​protection?

Arbitration provides a neutral platform that shields foreign investors from political interference, particularly in countries where ​judicial systems might be influenced by local politics or government interests. This neutrality is vital for ensuring that disputes are ​resolved fairly and impartially, independent of the host country’s political environment.

Neutral Forum: Arbitration offers a neutral and impartial forum where disputes are resolved by arbitrators selected by the ​parties themselves or through a recognized institution, such as the International Chamber of Commerce (ICC) or the Cairo ​Regional Centre for International Commercial Arbitration (CRCICA). These arbitral institutions ensure that arbitrators are ​independent and have no ties to local politics.

Protection under Egyptian Law: Law No. 27 of 1994 on Arbitration in Civil and Commercial Matters is Egypt's primary legal ​framework for arbitration. This law is based on international arbitration standards, such as the UNCITRAL Model Law, and ​applies to both domestic and international arbitration proceedings in Egypt. By adhering to international norms, Egyptian ​arbitration law provides a reliable mechanism that foreign investors can trust to avoid biased judicial rulings that may be ​influenced by political agendas.

Examples of Political Protection in Practice: In cases where foreign investors are in dispute with state-owned companies or ​government entities, arbitration ensures that the outcome of the dispute is based solely on the merits of the case, rather than ​any political considerations. For instance, in a case involving an international oil company operating in Egypt, the company might ​prefer arbitration over litigation in local courts to avoid any potential influence by governmental bodies on the judiciary.

Q: What is the significance of international agreements in supporting arbitration, especially for foreign investors?

International agreements play a crucial role in supporting arbitration by providing a legal framework that ensures the ​recognition and enforcement of arbitral awards across borders. One of the most important international agreements in this ​context is the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards, 1958.

The New York Convention: Egypt is a signatory to the New York Convention, which means that arbitral awards made in ​Egypt are enforceable in any of the other 168 contracting states, and vice versa. This is particularly important for foreign ​investors because it guarantees that an arbitral award obtained in a neutral jurisdiction can be enforced in the country where ​the assets of the losing party are located.

Legal Framework in Egypt: Under Article 55 of the Egyptian Arbitration Law (Law No. 27 of 1994), foreign arbitral awards are ​recognized and enforced in Egypt unless they contradict public policy or were obtained through improper processes. This ​provision ensures that Egypt complies with its obligations under international treaties like the New York Convention, making it ​easier for foreign investors to enforce arbitral awards against Egyptian entities.

Example of Cross-Border Enforcement: For example, if a foreign investor wins an arbitration award against an Egyptian ​company, the investor can enforce the award in Egypt by filing for recognition and enforcement with the Egyptian Court of ​Appeal. The court is obligated to recognize and enforce the award unless one of the narrow exceptions, such as a violation of ​public policy, applies. Similarly, if an Egyptian company wins an arbitration award in Egypt against a foreign company, that ​award can be enforced in any of the New York Convention member states.

Q: What are the key distinctions between arbitration and traditional court litigation, and how do these distinctions benefit ​businesses?

Arbitration differs from traditional court litigation in several key aspects, offering various benefits to businesses, especially in ​cross-border disputes:

Confidentiality: Unlike court litigation, where proceedings are typically public, arbitration allows for confidential proceedings. ​This is particularly beneficial for businesses that wish to protect sensitive information, such as trade secrets or financial data. For ​instance, in a dispute between two tech companies over intellectual property rights, arbitration would prevent proprietary ​information from being exposed to the public or competitors.

Flexibility in Procedure: Arbitration is much more flexible than court litigation. Parties can agree on the rules of procedure, the ​location of the arbitration, and the choice of arbitrators. This flexibility allows businesses to tailor the arbitration process to fit ​their specific needs. For example, parties may choose to use fast-track arbitration procedures to resolve a dispute more quickly ​than would be possible in court.

Speed of Resolution: Arbitration generally leads to faster resolutions than litigation. Courts are often backlogged with cases, ​resulting in long delays before a dispute is heard and resolved. Arbitration, on the other hand, is less formal and can be ​scheduled more quickly. In Egypt, it is not uncommon for complex commercial disputes to be resolved through arbitration in less ​than a year, compared to several years in court.

Finality of Awards: Arbitration awards are final and binding, with limited grounds for appeal. This finality is enshrined in ​Article 52 of the Egyptian Arbitration Law, which provides that arbitral awards may only be challenged on specific, limited ​grounds, such as procedural irregularities or public policy violations. This contrasts with court judgments, which can often be ​appealed multiple times, prolonging the dispute and increasing costs.

Q: How does the arbitration process work, and what are the typical stages involved in arbitration?

The arbitration process typically follows a series of stages, each governed by the arbitration agreement and the applicable ​rules of procedure. The main stages of arbitration include:

Commencement of Arbitration: Arbitration begins when one party submits a notice of arbitration to the other party, formally ​requesting arbitration. The arbitration agreement, whether included in the contract or agreed upon after the dispute arises, ​outlines the process for initiating arbitration. Under Article 27 of the Egyptian Arbitration Law, the arbitration procedure is ​initiated when the parties submit their dispute to an arbitral tribunal or institution.

Appointment of Arbitrators: The arbitrators are appointed either by mutual agreement of the parties or by the designated ​arbitral institution, such as the Cairo Regional Centre for International Commercial Arbitration (CRCICA). The arbitrators must be ​impartial and independent, and they are often experts in the relevant field of law or industry. Article 16 of the Egyptian ​Arbitration Law provides that arbitrators must disclose any circumstances that may affect their impartiality or independence.

Preliminary Meetings and Submissions: Once the arbitrators are appointed, a preliminary meeting is usually held to discuss the ​procedural timetable, exchange of documents, and other administrative matters. The parties then submit their respective ​claims, defenses, and counterclaims. This stage is crucial for setting the tone and structure of the arbitration.

Hearing and Evidence Presentation: The hearing is the stage where the parties present their evidence and arguments before ​the arbitrators. Unlike in court, the rules of evidence in arbitration are more flexible, allowing the parties to submit ​documentary evidence, witness statements, and expert reports without the formalities of court proceedings. The arbitrators ​may also ask questions and request additional evidence if necessary.

Deliberation and Award: After the hearing, the arbitrators deliberate on the evidence and arguments presented. Once they ​reach a decision, they issue an arbitral award, which is final and binding on the parties. Article 43 of the Egyptian Arbitration ​Law requires that the award be issued in writing and include the reasons for the decision, unless the parties agree otherwise.

Enforcement of the Award: If the losing party does not voluntarily comply with the arbitral award, the winning party may ​apply to the courts for enforcement. In Egypt, arbitral awards are enforceable under Article 56 of the Egyptian Arbitration ​Law, provided that the award does not violate public policy or exceed the scope of the arbitration agreement.

Q: What are the potential challenges and pitfalls in the arbitration process, particularly for foreign parties?

While arbitration offers many advantages, there are also potential challenges and pitfalls, especially for foreign parties ​unfamiliar with the local legal landscape:

Cost of Arbitration: Arbitration can sometimes be more expensive than court litigation due to the fees charged by arbitrators ​and arbitration institutions. Additionally, the cost of hiring specialized legal counsel and expert witnesses may be higher in ​complex international disputes. In Egypt, while arbitration fees are generally lower than in many Western jurisdictions, the ​overall cost can still be significant, particularly for small and medium-sized enterprises.

Enforcement Difficulties: Although arbitral awards are enforceable under the New York Convention, enforcement can be ​challenging in jurisdictions where the local courts are reluctant to enforce foreign awards. For example, in some countries, courts ​may refuse to enforce an award if they believe it violates public policy or local law. Even in Egypt, there have been cases where ​foreign arbitral awards were refused enforcement due to conflicts with local public policy principles.

Cultural and Legal Differences: Foreign parties may face challenges related to cultural and legal differences when arbitrating ​in a foreign jurisdiction like Egypt. For instance, the approach to dispute resolution in Egypt may differ significantly from ​Western legal traditions, and foreign parties may need to adapt to local practices, such as the emphasis on compromise and ​reconciliation

Q: What are the specific laws and regulations governing arbitration in Egypt, and how do they compare to international ​standards?

Arbitration in Egypt is governed by Law No. 27 of 1994 (The Egyptian Arbitration Law) on Arbitration in Civil and Commercial ​Matters. This law incorporates key principles from the UNCITRAL Model Law on international commercial arbitration, ensuring ​that Egypt's arbitration framework aligns with international standards while accommodating local legal practices.

Alignment with International Standards: The Egyptian Arbitration Law closely follows international arbitration principles to ​facilitate both domestic and international disputes. For example, similar to the UNCITRAL Model Law, Article 1 of the Egyptian ​Arbitration Law allows parties to choose the applicable law and language for the arbitration, providing flexibility that is ​essential in cross-border disputes.

Local Adaptations: While largely consistent with international standards, Egyptian arbitration law includes certain ​adaptations to fit local legal culture. For instance, under Article 25, parties can agree on procedural rules, but if they fail to do ​so, the arbitral tribunal may apply the rules it deems appropriate, provided they do not contradict public order. This flexibility is ​essential in complex commercial arbitrations where procedural rigidity could hinder fair resolution.

Public Policy Considerations: Egypt's public policy plays a significant role in arbitration proceedings. While arbitral awards are ​generally binding and enforceable, Article 53 allows the nullification of an award if it violates public order in Egypt. Public policy ​covers areas like criminal acts, family law, and national security concerns. For instance, if an arbitral award deals with issues ​related to personal status or public rights, it can be deemed unenforceable in Egyptian courts.

Q: How does arbitration handle complex technical or industry-specific disputes, and what role do expert witnesses play in the ​process?

Arbitration is particularly well-suited for handling complex technical or industry-specific disputes because it allows the parties to ​appoint arbitrators who are experts in the relevant field. This flexibility is one of the main advantages of arbitration over ​traditional litigation, where judges may not have specialized knowledge in certain areas.

Appointment of Expert Arbitrators: In disputes involving complex issues such as construction, telecommunications, or intellectual ​property, parties often select arbitrators with expertise in the relevant industry. For example, in a construction dispute ​involving a large infrastructure project, the parties might choose arbitrators with engineering or construction law experience. ​Article 16 of the Egyptian Arbitration Law allows parties to select arbitrators based on their qualifications, ensuring that the ​arbitrator understands the technical aspects of the case.

Use of Expert Witnesses: In addition to expert arbitrators, parties may also call expert witnesses to testify during the ​arbitration process. Expert witnesses provide specialized knowledge that helps clarify complex technical issues for the arbitral ​tribunal. For example, in an intellectual property dispute involving patent infringement, the parties may present expert ​witnesses in patent law or technology to explain the intricacies of the patent and the alleged infringement.

Flexibility in Evidence Presentation: Unlike traditional court procedures, arbitration allows for more flexible presentation of ​evidence, including expert reports and technical documents. This flexibility is particularly beneficial in disputes requiring a deep ​understanding of industry-specific standards or technologies. Article 33 of the Egyptian Arbitration Law provides that the ​tribunal has broad discretion in determining the admissibility and weight of evidence, including expert testimony.

Q: What are the advantages of fast-track arbitration, and in what situations is it typically used?

Fast-track arbitration is a streamlined arbitration process designed to resolve disputes more quickly and efficiently than ​traditional arbitration. It is often used in situations where the parties require a quick resolution, or the dispute is relatively ​straightforward.

Speed and Efficiency: The main advantage of fast-track arbitration is the speed with which disputes can be resolved. ​Standard arbitration procedures can take months or even years to complete, particularly in complex cases. Fast-track ​arbitration, by contrast, is designed to resolve disputes in a matter of weeks or months. The procedural timelines are ​shortened, and the parties agree to limit the scope of evidence and the number of hearings to expedite the process.

Simplicity in Procedure: Fast-track arbitration is typically used in cases where the facts are relatively clear, and the issues in ​dispute are straightforward. For example, fast-track arbitration may be used in small commercial disputes, such as payment ​disputes between businesses. The simplified procedures in fast-track arbitration help reduce costs and allow for quicker awards, ​which can be particularly beneficial for businesses seeking to resolve disputes without significant disruption.

Applicable Legal Framework in Egypt: Fast-track arbitration is recognized under Egyptian law, and the parties can agree to ​shorten the procedural timeline as long as it does not violate public policy or the arbitration agreement. Article 24 of the ​Egyptian Arbitration Law allows the parties to agree on the procedural rules for arbitration, and this can include provisions for ​a fast-track process. For instance, the parties may agree to limit the number of witnesses or restrict the amount of ​documentary evidence submitted.

Q: How does the enforcement of arbitral awards work in Egypt, and what are the legal grounds for refusing enforcement?

The enforcement of arbitral awards in Egypt is governed by Law No. 27 of 1994 and the New York Convention on the ​Recognition and Enforcement of Foreign Arbitral Awards, 1958, to which Egypt is a signatory. The process of enforcing arbitral ​awards in Egypt involves several steps, and there are limited legal grounds on which enforcement can be refused.

Enforcement Procedure: To enforce an arbitral award in Egypt, the party seeking enforcement must apply to the Court of ​Appeal with the necessary documentation, including a certified copy of the award and the arbitration agreement. The court ​will review the application and issue an order for enforcement, provided that the award complies with the legal requirements ​under Egyptian law.

Grounds for Refusal of Enforcement: Article 58 of the Egyptian Arbitration Law specifies the legal grounds for refusing the ​enforcement of an arbitral award. These grounds include:

If the arbitration agreement was invalid or non-existent.

If the party against whom the award is invoked was not properly notified of the arbitration proceedings or was otherwise ​unable to present their case.

If the arbitral tribunal exceeded its authority by deciding on matters beyond the scope of the arbitration agreement.

If the award contradicts public order in Egypt. This is the most commonly invoked ground for refusing enforcement. For example, ​if an arbitral award involves the enforcement of an illegal contract or addresses non-arbitrable matters such as family law or ​criminal penalties, the court may refuse enforcement on public policy grounds.

Examples of Enforcement Refusals: In one case, a foreign arbitral award was refused enforcement in Egypt because it was ​found to violate Egyptian public policy related to land ownership by foreigners. Egyptian law places restrictions on foreign ​ownership of agricultural land, and the arbitral award’s enforcement would have contravened this policy. In such cases, the ​Egyptian courts are vigilant in protecting national interests and public order.

Q: What is the role of arbitral institutions in Egypt, and how do they facilitate the arbitration process?

Arbitral institutions play a vital role in facilitating the arbitration process by providing administrative support, procedural ​guidance, and ensuring that arbitration is conducted fairly and efficiently. In Egypt, one of the most prominent arbitral ​institutions is the Cairo Regional Centre for International Commercial Arbitration (CRCICA).

Administration of Arbitration: CRCICA, established in 1979, provides a neutral forum for the arbitration of both domestic and ​international disputes. The center administers arbitration proceedings by appointing arbitrators, setting procedural timelines, ​and managing communications between the parties and the arbitral tribunal. CRCICA also offers model arbitration clauses that ​parties can incorporate into their contracts to ensure that any disputes are submitted to the center for resolution.

Role in Arbitrator Appointment: One of the key roles of arbitral institutions like CRCICA is the appointment of arbitrators. When ​the parties cannot agree on an arbitrator, CRCICA steps in to appoint a neutral arbitrator from its roster of experienced ​professionals. This ensures that the arbitrator has the necessary expertise and independence to resolve the dispute impartially.

Training and Development: In addition to administering arbitration, CRCICA plays an important role in promoting arbitration as ​a dispute resolution method in Egypt and the broader region. The center offers training programs, conferences, and seminars ​for arbitrators, lawyers, and business professionals to enhance their understanding of arbitration law and practice.

International Recognition: CRCICA is recognized internationally for its high standards in arbitration administration, and its ​awards are enforceable under the New York Convention, to which Egypt is a signatory. This makes CRCICA a preferred venue ​for international arbitration involving Egyptian and foreign parties, as it provides confidence that the awards will be ​recognized and enforceable in other jurisdictions.

1. what types of companies can I establish in Egypt as a foreign investor?

You can establish various types of companies, including:

• Limited Liability Company (LLC): A company where the liability of each partner is limited to their shares.
  
• Joint Stock Company (JSC): A company with shares that can be publicly traded, and partners are liable only for their share ​capital.
  
• Sole Proprietorship: A business owned and managed by one individual, bearing all responsibilities and profits.
  
• Partnership: Including general partnerships and limited partnerships, where partners share responsibilities and profits ​based on the agreement.
  
• One-Person Company: A company owned by a single individual with limited liability.
  

2. What are the basic requirements to establish a Limited Liability Company (LLC)?

• Minimum of 2 and maximum of 50 partners.
  
• Partners' liability is limited to their shares in the company.
  
• The company cannot issue shares or bonds and is not allowed to be listed on the stock exchange.
  
• The company name may be derived from its purpose or may include one or more partners' names.
  

Required Documents:

• A certificate of the trade name.
  
• Copies of partners' identification documents.
  
• A certified power of attorney.
  
• A report from an accountant confirming the company’s financials.
  

3. Can I establish a company in a Free Zone? What are the benefits?

Yes, you can establish your company in a public or private free zone under Investment Law No. 72 of 2017. Free zones offer ​benefits such as:

• Exemptions from taxes and customs duties.
  
• No restrictions on capital transfers.
  
• Full ownership for foreign investors. To set up in a free zone, you need approval from the Board of Directors for a public free ​zone or the Council of Ministers for a private free zone.
  

4. How do I establish a Sole Proprietorship in Egypt?

A Sole Proprietorship is owned by a single individual who is fully responsible for the business. The company’s capital is ​determined by the owner.

Required Documents:

• A power of attorney (if applicable).
  
• The owner’s identification documents.
  
• Approval from relevant authorities if required for certain business activities.
  

5. How do I change or amend the Articles of Association for my company?

To amend the Articles No. 6 & 7 of your company's Articles of Association (regarding capital and shares), the following documents ​are required:

• A request for approval.
  
• Minutes from the board meeting outlining the proposed amendments.
  
• Updated commercial register extract.
  
• A certified copy of the company’s existing articles of association.
  

6. What is the process for liquidating my company in Egypt?

Company liquidation involves a process to wind down the business. There are different steps based on whether the company is ​a sole proprietorship, partnership, or joint stock company.

For Sole Proprietorships:

• A request for liquidation from the owner or agent.
  
• A copy of the establishment documents and any amendments.
  
• Updated commercial register extract.
  
• Payment of liquidation fees.
  

7. Are there any restrictions on foreign ownership in Egypt?

Foreign investors are allowed to fully own businesses in most sectors. However, certain industries, such as Sinai Peninsula ​projects, may require special approvals and may impose restrictions on foreign ownership.

8. What tax exemptions are available for foreign investors?

Under the Investment Law No. 72 of 2017, companies operating in specific economic zones or free zones may enjoy several tax ​benefits, such as:

• Customs duty exemptions on imported machinery and raw materials.
  
• Exemptions from VAT and other sales taxes on certain transactions.
  

9. What are the procedures for obtaining work permits for foreign employees?

You can apply for work permits for foreign employees through the Investment Services Center. The application involves:

• Submitting employment contracts.
  
• Providing identification documents.
  
• Applying for work permits and residence permits for foreign employees.
  

10. How long does it take to establish a company in Egypt?

The process typically takes one business day for most companies, assuming all documents are in order and fees are paid. This ​timeframe applies to standard registrations via the Investor Services Center or the online portal.

These FAQs cover a broad range of common concerns and can help investors navigate the process of company formation and ​operations in Egypt effectively.

11. What is the Golden License, and how can I apply for it?

The Golden License is a single approval that covers all procedures related to establishing, operating, and managing a project. It ​includes building permits, property allocation, and other necessary approvals. It can be granted to companies by a decision from ​the Council of Ministers.

How to Apply:

• Submit an application via the online portal or through the Technical Secretariat of the Golden License Unit at GAFI’s ​headquarters.
  
• Provide essential documents, including the company’s articles of association, commercial registry, feasibility study, and ​financial evidence.
  
• The approval process typically takes 20 to 30 business days.
  

12. How can I merge my company with another through absorption?

Merging through absorption is the process where one company absorbs another, and the merged company ceases to exist. The ​absorbing company continues operations under its name.

Required Documents:

• A request to GAFI’s Head of the Investment Services Sector.
  
• Valuation reports of both companies from the GAFI Committee.
  
• Minutes of the Extraordinary General Meetings (EGM) of both companies.
  
• Updated commercial registry for both companies.
  
• A draft of the merger agreement and amended articles of association.
  

13. Can I change the legal structure of my company in Egypt?

Yes, you can change the legal structure of your company, such as converting from an LLC to a Joint Stock Company or from a ​partnership to a corporation.

Documents Required:

• GAFI Committee valuation report.
  
• Minutes from the Extraordinary General Meeting (EGM) approving the legal structure change.
  
• Updated commercial registry.
  
• Draft contract for the new legal structure.
  
• Approval from relevant authorities if required for specific industries.
  

14. How can I open or close a branch of my company?

To open or close a branch of your company, you need to submit certain documents and follow a formal procedure.

Documents Required:

• Request for approval of the branch opening or closing.
  
• Minutes from the Board of Directors' meeting.
  
• Updated commercial registry.
  
• Lease agreement or proof of possession for the branch location.
  
• Security clearance if the branch is located in sensitive areas like Sinai
  

15. What are the requirements for establishing a Joint Venture or Limited Partnership?

A joint venture or limited partnership relies on the personal relationships between partners, and partners typically share profits ​and responsibilities.

Required Documents:

• A request to amend the articles of a joint venture or limited partnership.
  
• Minutes of meetings signed by all partners.
  
• Powers of attorney from all partners.
  
• Commercial registry extract and identification documents for new partners.
  
• Approval from relevant authorities for certain business activities
  

16. How can I obtain an Investment License for my project?

To obtain an investment license, you need to apply through the Investment Services Center (ISC) or the online portal.

Steps:

• Submit all required documentation, including a feasibility study, identification documents, and relevant approvals from ​other government authorities.
  
• The ISC reviews your application and coordinates with the relevant governmental bodies for approvals.
  
• Once all requirements are met, you’ll receive the investment license.
  

17. What are the benefits of establishing my company under the Free Zones System?

Companies under the Free Zones System enjoy several benefits, including:

• Exemption from customs duties on imported machinery and raw materials.
  
• No limitations on capital transfers.
  
• Exemption from value-added tax (VAT) and sales taxes on some transactions.
  
• Ability to operate with 100% foreign ownership.
  

18. How do I convert my company from operating under the Free Zones System to the Internal Investment System?

To convert from the Free Zones System to the Internal Investment System under Law No. 72 of 2017 or Law No. 159 of 1981, you ​will need:

• A certificate of non-confusion of the company’s name.
  
• Minutes of the Extraordinary General Meeting approving the conversion.
  
• GAFI’s approval for the conversion.
  
• Updated commercial registry.
  
• Articles of association reflecting the conversion.
  

19. What is the process for increasing or decreasing the company’s capital?

You can increase or decrease the capital of your company by holding a General Assembly and making amendments to the ​articles of association.

Steps for Capital Increase:

• Obtain a bank certificate showing the deposit of at least 10% of the capital increase.
  
• Provide the General Assembly’s approval and updated articles of association.
  
• Apply to GAFI for final approval.
  

Steps for Capital Decrease:

• A decision from the General Assembly approving the reduction.
  
• Provide evidence that the company’s creditors have been notified.
  

20. How do I obtain approval for opening a branch in Sinai?

Due to the special regulations for the Sinai Peninsula, opening a branch there requires additional steps.

Required Documents:

• A security clearance for foreign investors.
  
• Proof of possession for the branch location.
  
• A business plan detailing how the company will contribute to local development.
  
• Approval from the Sinai Development Authority and relevant government bodies.
  

21. Can I dissolve and liquidate my company in Egypt?

Yes, companies can be dissolved either voluntarily or through a court order. The liquidation process involves:

• Appointing a liquidator.
  
• Preparing the final liquidation accounts and balance sheets.
  
• Paying off all outstanding debts and distributing any remaining assets among shareholders.
  
• Publishing the liquidation notice in the Investment Newspaper and other required publications.
  

22. What documents are required to change the company’s legal address?

To change the registered office of your company, you need:

• Minutes of the General Assembly or Board Meeting approving the change.
  
• Updated commercial registry reflecting the new address.
  
• Proof of possession (e.g., lease agreement) for the new office.
  
• Approvals from relevant authorities if required based on the location.
  

23. Are there specific approvals needed for foreign investors operating in sensitive industries?

Yes, certain industries require special approvals from relevant government bodies before foreign investors can operate. These ​industries may include:

• Banking (requires approval from the Central Bank of Egypt).
  
• Telecommunications.
  
• Tourism.
  
• Defense and Security sectors.
  

24. How can I verify the legal status and standing of a potential Egyptian business partner?

You can verify the legal status and standing of an Egyptian business partner by:

• Checking their commercial registry.
  
• Requesting their financial records or credit history.
  
• Reviewing their history of legal cases or disputes through the Central Agency for Public Mobilization and Statistics ​(CAPMAS).
  

25. How can I add or remove shareholders or partners in my company?

You can add or remove shareholders or partners through a formal amendment to the company’s Articles of Association.

Steps:

• Hold a General Assembly Meeting to approve the changes.
  
• Submit the amended articles to GAFI.
  
• Update the commercial registry and other necessary legal documents.
  

This extended list covers a comprehensive range of concerns and procedures foreign investors might have while establishing, ​managing, or dissolving businesses in Egypt.

26. Can I establish a sole proprietorship as a foreign investor in Egypt?

Yes, foreign investors can establish a sole proprietorship in Egypt, but the legal responsibility will rest solely on the owner.

Documents Required:

• A request from the sole proprietor.
  
• Copy of the commercial registry.
  
• Proof of identity for the owner (e.g., passport).
  
• Any necessary approvals from authorities depending on the industry (for regulated activities).
  

27. How do I appoint a legal representative for my company in Egypt?

To appoint a legal representative, you must:

• Prepare a Power of Attorney (PoA) detailing the legal representative's responsibilities.
  
• The PoA must be signed and notarized by the notary public.
  
• Submit the PoA along with identification documents of the representative to the commercial registry.
  

28. How long does it take to establish a company in Egypt?

Establishing a company can take as little as 1 business day, provided all required documents are submitted and approved.

However, depending on the type of business and whether any special approvals are needed (such as in regulated industries like ​telecommunications or banking), the process can take longer.

29. What are the steps for registering a foreign branch in Egypt?

Foreign companies can establish branches in Egypt to carry out business activities. The steps include:

• Submission of the parent company’s certificate of incorporation and articles of association.
  
• Translation of all documents into Arabic.
  
• Appointing a branch manager and submitting their identification documents.
  

• Submission of a bank certificate showing a deposit to cover operational costs.

30. How do I withdraw profits from my business in Egypt as a foreign investor?

As a foreign investor, you can transfer your profits abroad without restrictions, provided that:

• Your business has complied with all tax and regulatory requirements.
  
• You have a bank account in Egypt where profits are first deposited.
  
• Ensure that all payments due to employees, suppliers, and tax authorities have been settled.
  

31. How do I close a branch of my company in Egypt?

To close a branch, follow these steps:

• Submit a request for branch closure to GAFI.
  
• Provide minutes from the Board of Directors or partner meeting approving the closure.
  
• Clear all liabilities, including taxes and salaries.
  
• Ensure the commercial registry and all relevant government bodies are informed.
  

32. What is the procedure for appointing a new Board of Directors member?

To appoint a new member to your Board of Directors, you need:

• Minutes from the General Assembly or Board of Directors meeting approving the appointment.
  
• Updated commercial registry.
  
• Identification documents of the new board member.
  
• Approvals from relevant authorities if the board member is a foreign national or employed in the public sector.
  

33. How do I apply for an Industrial License in Egypt?

An Industrial License is required for manufacturing operations in Egypt. The application process includes:

• Submitting a feasibility study and site plan.
  
• Providing documentation on environmental impact.
  
• Approval from the Ministry of Trade and Industry and other relevant bodies.
  
• Once approved, you will be issued the license to begin industrial operations.
  

34. What taxes should I be aware of as a foreign investor?

Taxes that foreign investors may encounter include:

• Corporate Income Tax: Levied on the profits of your company.
  
• Value-Added Tax (VAT): Levied on the sale of goods and services (standard rate is 14%).
  
• Customs Duties: Applied to imported goods.
  
• Withholding Tax: Applied on dividend distribution, royalties, and interest payments. Ensure that you work with a tax ​consultant to remain compliant with Egyptian tax laws.
  

35. Can my company benefit from investment incentives in Egypt?

Yes, companies established under Law No. 72 of 2017 can benefit from various incentives, including:

• Tax exemptions for projects in certain sectors (e.g., agriculture, manufacturing).
  
• Subsidies for projects located in underdeveloped areas.
  
• Customs duty exemptions on machinery and equipment. Consult with GAFI to understand which incentives your company ​qualifies for.
  

36. What is required to sell or transfer ownership of my company?

Selling or transferring ownership requires:

• A General Assembly meeting where the sale is approved.
  
• Transfer of shares or ownership stake according to the Articles of Association.
  
• Submission of the share transfer agreement to the commercial registry.
  
• Updating the company’s articles to reflect the new ownership structure.
  

37. How can I acquire land for industrial purposes?

Land for industrial purposes can be acquired through:

• Government allocations or public auctions.
  
• Direct purchase from private owners.
  
• In some cases, you may need to lease the land for a fixed period. You must submit an application to GAFI or the Industrial ​Development Authority (IDA) for approval.
  

38. How do I change the company’s name in Egypt?

Changing the company name requires:

• Minutes from the General Assembly approving the name change.
  
• A certificate of non-confusion from the commercial registry.
  
• Amendment of the Articles of Association to reflect the new name.
  
• Submitting all relevant documents to GAFI for final approval.
  

39. What are the procedures for increasing the company’s workforce?

To expand your workforce, you must:

• Register new employees with the Social Insurance Authority.
  
• Ensure all labor contracts are in compliance with Egyptian labor laws.
  
• Ensure work permits for foreign employees are obtained if needed. Additionally, your company must comply with minimum ​wage regulations and worker benefits.
  

40. Are there special regulations for foreign investments in specific regions, such as Sinai?

Yes, investments in regions like Sinai are subject to additional regulations, including:

• Security clearance for foreign investors.
  
• Special approvals from the Sinai Development Authority.
  
• Investments in Sinai may also require proof of the company's contribution to local development.
  

41. How do I establish a holding company in Egypt?

A holding company in Egypt is established similarly to other business types, but its primary function is to own subsidiary ​companies. Steps include:

• Submitting the Articles of Association that define the purpose as a holding company.
  
• Acquiring at least 51% of the shares of subsidiaries.
  
• Complying with GAFI's regulations and financial disclosure rules.
  

42. How can I resolve disputes with business partners or the government?

Disputes can be resolved through:

• Mediation or arbitration by GAFI’s Investor Disputes Settlement Center.
  
• Filing a case with the Administrative Courts in Egypt.
  
• You can also utilize international arbitration mechanisms if stipulated in the investment contract.
  

43. What is the process for dissolving a Joint Stock Company in Egypt?

To dissolve a Joint Stock Company:

• Hold a General Assembly to approve the dissolution.
  
• Appoint a liquidator to manage the process.
  
• Notify GAFI and the commercial registry of the dissolution.
  
• Settle all liabilities and publish the dissolution in the Investment Newspaper.
  

44. Can foreign investors hold real estate in Egypt?

Foreign investors can hold real estate in Egypt but there are some restrictions:

• Foreigners are not allowed to own more than two properties for residential purposes.
  
• Ownership of real estate in certain strategic areas (like Sinai) requires special approvals.
  
• For commercial or industrial purposes, real estate can be acquired with fewer restrictions.
  

45. How do I secure intellectual property rights (IPR) for my business in Egypt?

To protect intellectual property in Egypt, you need to:

• Register your trademarks, patents, or copyrights with the Egyptian Patent Office.
  
• Ensure your business complies with Egypt’s Intellectual Property Law (No. 82 of 2002).
  
• Enforcement can be done through civil and criminal courts if infringement occurs.
  

46. How do I obtain work permits for foreign employees?

To hire foreign employees, you must:

• Apply to the Ministry of Manpower for a work permit.
  
• Submit the employee’s passport, medical clearance, and employment contract.
  
• Provide proof that the position cannot be filled by an Egyptian national. Work permits are typically issued for 1 year and ​can be renewed annually.
  

47. Are there any restrictions on the industries foreign investors can operate in?

Yes, some industries in Egypt have restrictions or require additional approvals for foreign investors, such as:

• Telecommunications.
  
• Oil and Gas.
  
• Media and Publishing.
  
• Military-related industries. Consult with GAFI to understand any specific industry restrictions.
  

48. How can I change the legal structure of my company?

If you wish to change the legal structure (e.g., from a limited liability company to a joint stock company), the process includes:

• A General Assembly meeting to approve the change.
  
• Drafting new Articles of Association.
  
• Submitting the new structure to GAFI and updating the commercial registry. You may also need to submit a valuation ​report and pay the associated fees.
  

49. What steps are involved in opening a branch office for my foreign company in Egypt?

To open a branch office, you must:

• Submit an application to GAFI along with the parent company’s incorporation documents.
  
• Appoint a branch manager and submit their identification documents.
  
• Provide a bank certificate confirming a deposit covering operational costs.
  
• The branch will operate under the same legal conditions as a local company.
  

50. How do I liquidate a company in Egypt?

Liquidating a company involves:

• Holding a General Assembly to approve the liquidation.
  
• Appointing a liquidator to handle the process.
  
• Notifying GAFI and the commercial registry.
  
• Settling all debts, paying employees, and publishing the liquidation notice in the Investment Newspaper.
  

51. What are the rules for acquiring agricultural land as a foreign investor?

Foreigners can lease but cannot own agricultural land in Egypt. However, you may:

• Enter into long-term lease agreements.
  
• Establish partnerships with Egyptian nationals. Consult with GAFI for more information on leasing agricultural land.
  

52. Are there restrictions on repatriating capital and profits from Egypt?

No, there are no restrictions on repatriating profits as long as:

• All tax obligations have been fulfilled.
  
• Profits are transferred through an Egyptian bank. You can freely transfer both capital and profits abroad in foreign ​currency.
  

53. What are the regulations for public-private partnerships (PPP) in Egypt?

Public-private partnerships are encouraged in Egypt. Key sectors for PPPs include:

• Infrastructure (roads, bridges, utilities).
  
• Healthcare.
  
• Education. The Ministry of Finance oversees PPP projects, and you must submit a proposal aligned with national ​development goals.
  

54. How do I renew my commercial registration in Egypt?

The commercial registration for companies must be renewed every 5 years. Steps include:

• Submitting a renewal request to the commercial registry.
  
• Providing updated company documents, including financial statements and proof of tax clearance.
  
• Paying the required fees.
  

55. Are there any investment opportunities in Egypt's free zones?

Yes, free zones in Egypt offer several benefits for foreign investors, including:

• Tax exemptions on profits and exports.
  
• No restrictions on the repatriation of profits.
  
• Full ownership of the project by foreign investors. Free zones are available for various industries, including manufacturing, ​logistics, and technology.
  

56. What are the key differences between the investment law (Law No. 72 of 2017) and the commercial law (Law No. 159 of ​1981)?

• Law No. 72 of 2017 focuses on attracting foreign investment with various incentives and guarantees, including tax ​exemptions and ease of profit repatriation.
  
• Law No. 159 of 1981 governs general commercial entities and regulates corporate governance, reporting, and shareholder ​responsibilities. Consult with GAFI to determine under which law your company should operate.
  

57. Can I acquire a company in Egypt as a foreign investor?

Yes, foreign investors can acquire existing companies in Egypt. The acquisition process includes:

• Conducting due diligence on the company.
  
• Drafting a share purchase agreement.
  
• Receiving approval from GAFI and updating the commercial registry. For certain industries, additional approvals from ​relevant authorities may be required.
  

58. What environmental regulations must I comply with for my business?

Businesses in Egypt must comply with the Environmental Law No. 4 of 1994, which includes:

• Environmental Impact Assessments (EIA) for certain projects.
  
• Regulations for waste management, pollution control, and emissions. The Ministry of Environment oversees compliance, ​and businesses must regularly report on their environmental practices.
  

59. How do I increase or decrease the capital of my company?

To change your company’s capital, you must:

• Hold a General Assembly to approve the change.
  
• Submit a bank certificate if increasing capital through cash or profits.
  
• Amend the company’s Articles of Association to reflect the new capital.
  
• Register the changes with the commercial registry and GAFI.
  

60. What support does GAFI offer for dispute resolution between investors and government authorities?

GAFI offers mediation services through its Investor Disputes Settlement Center, where investors can resolve disputes with:

• Government authorities regarding approvals or regulations.
  
• Business partners over contractual disagreements. In case mediation fails, you may pursue arbitration or court litigation.
  

61. How do I establish a joint venture (JV) with an Egyptian partner?

To establish a joint venture:

• Draft a joint venture agreement outlining the roles, responsibilities, and profit-sharing between partners.
  
• Register the JV with GAFI.
  
• The company can be structured as either a limited liability company or a joint stock company, depending on the partners’ ​preferences and capital contributions.
  

62. Are there any quotas for hiring local workers?

Yes, Egyptian labor law requires that at least 90% of the workforce in a company must be Egyptian nationals, although ​exceptions may be granted for specialized roles. Ensure your company complies with the Ministry of Manpower's requirements ​and properly registers local employees with social insurance.

63. How do I protect my business from legal liabilities in Egypt?

To protect your business:

• Ensure all contracts are legally binding and reviewed by a lawyer.
  
• Comply with tax and labor laws.
  
• Obtain necessary insurance policies for your business and employees.
  
• Keep records of all transactions and correspondence with government authorities.
  

64. Can I change the company’s registered address in Egypt?

Yes, to change your company’s registered address:

• Submit an application to the commercial registry and GAFI.
  
• Provide proof of the new address (such as a lease agreement or ownership document).
  
• Update your company’s Articles of Association if necessary.
  

65. Are there any special incentives for green or sustainable investments in Egypt?

Yes, Egypt encourages green and sustainable investments, particularly in renewable energy and eco-friendly technologies. ​Incentives include:

• Tax breaks for green projects.
  
• Subsidies for renewable energy projects.
  
• Easier access to financing from both national and international sources.
  

66. What are the tax implications of transferring shares in an Egyptian company?

When transferring shares, you must:

• Pay capital gains tax on the sale of shares.
  
• Ensure the buyer and seller comply with tax obligations, including reporting the transaction to the Tax Authority.
  
• Obtain a certificate from the Tax Authority confirming that all tax liabilities have been settled before completing the ​transfer.
  

67. How do I ensure compliance with Egyptian anti-corruption laws?

To comply with anti-corruption laws, ensure your business:

• Avoids offering or accepting bribes.
  
• Keeps detailed financial records and audits.
  
• Adheres to Ethics and Anti-Corruption Guidelines established by the Egyptian government and international conventions, ​such as the United Nations Convention Against Corruption.
  

68. What are the consequences of non-compliance with tax regulations in Egypt?

Non-compliance with tax regulations can result in:

• Fines or penalties for late filings or underreporting.
  
• Possible business closures or freezing of assets.
  
• Criminal charges for tax evasion. Ensure your company remains in compliance by consulting with a tax advisor and ​regularly filing the required tax returns.
  

69. What are the key steps for obtaining building permits for a new project in Egypt?

To obtain a building permit, you need to:

• Submit architectural plans to the local municipality for approval.
  
• Ensure the project complies with zoning laws and safety regulations.
  
• Obtain environmental clearances, if required, depending on the project’s impact.
  
• Pay the applicable fees and obtain final approval to begin construction. GAFI can assist in expediting these approvals.
  

70. What is the process for registering intellectual property (IP) in Egypt?

To protect your intellectual property:

• Trademarks and patents should be registered with the Egyptian Patent Office.
  
• Submit an application with the necessary documentation, including proof of ownership.
  
• The registration process typically takes 6–12 months, depending on the type of IP.
  
• Once registered, your IP is protected under Egyptian law and subject to renewal.
  

71. How do I dissolve a joint venture (JV) in Egypt?

To dissolve a JV:

• Call a General Assembly to pass a resolution on dissolution.
  
• Appoint a liquidator to oversee the process.
  
• Notify GAFI and update the commercial registry.
  
• Settle all financial obligations, including taxes, and publish the dissolution in the Investment Gazette.
  

72. What special visas or residency permits are available for foreign investors in Egypt?

Foreign investors can apply for a long-term residency visa or a special investor visa, which typically allows:

• Residency for up to 5 years (renewable).
  
• Access to multiple entry privileges.
  
• Easier processing for family members. To qualify, you may need to provide proof of your investment in Egypt and submit ​the necessary paperwork to Immigration Authorities.
  

73. How does Egypt's taxation system handle the taxation of foreign-earned income?

Egypt generally taxes residents on their worldwide income and non-residents on Egypt-sourced income. If you earn foreign ​income as an investor:

• You may benefit from double taxation treaties Egypt has with various countries, which helps reduce tax burdens.
  
• Ensure your foreign-earned income is declared, and any applicable taxes are paid to avoid penalties.
  

74. Are there any incentives for establishing research and development (R&D) centers in Egypt?

Yes, Egypt encourages investment in R&D by offering:

• Tax exemptions for R&D expenditures.
  
• Grants and funding opportunities for projects aligned with national development goals.
  
• Access to government laboratories and research institutions for collaborations. GAFI can guide you through the available ​incentives for establishing R&D facilities.
  

75. How do I register my company with the Egyptian Social Insurance Authority?

To register your company for social insurance:

• Visit the Egyptian Social Insurance Authority or use their online portal.
  
• Submit documents like employee contracts, company registration papers, and payroll information.
  
• Pay monthly social insurance contributions for each employee. It is mandatory for companies to provide social insurance for ​their workers.
  

76. What is the process of listing a company on the Egyptian Stock Exchange (EGX)?

To list your company on the EGX, you need to:

• Meet the financial criteria set by the EGX, including profitability and capitalization requirements.
  
• Submit audited financial statements and apply to the Egyptian Financial Regulatory Authority (FRA).
  
• Conduct an Initial Public Offering (IPO) to sell shares to the public. GAFI can assist with regulatory compliance and preparing ​your company for the listing.
  

77. How do I get approval for importing goods as part of my investment?

To import goods, you must:

• Register as an importer with the General Organization for Export and Import Control (GOEIC).
  
• Obtain an import license from the Ministry of Trade and Industry.
  
• Ensure the goods comply with Egyptian standards and safety regulations.
  
• Pay the necessary customs duties unless exempted under specific investment agreements.
  

78. What are the requirements for issuing bonds or securities in Egypt?

If you wish to issue bonds or securities:

• Your company must be a joint-stock company.
  
• Obtain approval from the Egyptian Financial Regulatory Authority (FRA).
  
• Submit your company’s financial statements, proposed bond structure, and other relevant documents.
  
• Ensure compliance with capital market laws and EGX regulations if publicly traded.
  

79. What are the environmental obligations for a manufacturing business in Egypt?

Manufacturing businesses must:

• Complete an Environmental Impact Assessment (EIA) and submit it to the Ministry of Environment.
  
• Implement pollution control measures and manage waste properly.
  
• Comply with laws on air emissions, water usage, and hazardous materials. Failure to comply may result in penalties or ​closure of the business.
  

80. Can I acquire agricultural or desert land as a foreign investor?

Foreign investors cannot own agricultural or desert land in Egypt. However, you can:

• Lease land for agricultural or investment purposes.
  
• Establish a joint venture with Egyptian partners to benefit from ownership privileges. Consult GAFI for the most suitable ​approach based on your investment.
  

81. How do I protect my trademarks in Egypt?

To protect your trademark:

• Register it with the Egyptian Trademark Office under the Ministry of Trade and Industry.
  
• Ensure the trademark is distinctive and not in use by another entity.
  
• The process usually takes 6–12 months. Once registered, the trademark is valid for 10 years and can be renewed.
  

82. Are there any special financing options available for startups in Egypt?

Yes, Egypt offers several financing options for startups, including:

• Venture capital and angel investors through various incubators.
  
• Grants and funding from government programs like Misr El Kheir Foundation.
  
• Loans from Egyptian banks with special rates for small and medium enterprises (SMEs). GAFI can direct startups to the ​most relevant funding sources.
  

83. What are the criteria for expanding into free zones?

To expand into a free zone:

• Your business must meet the zone’s specific criteria, which may include export targets, employment levels, or industry ​type.
  
• Submit an application to GAFI or the relevant Free Zone Authority.
  
• Ensure compliance with the free zone’s regulations, such as tax and customs exemptions, and other investment incentives.
  

84. How do I resolve labor disputes in Egypt?

Labor disputes can be resolved through:

• Mediation provided by the Ministry of Manpower or Labor Unions.
  
• Filing a complaint with the Labor Court.
  
• Negotiating settlements directly with employees. It’s important to have employment contracts that clearly outline terms ​and conditions to prevent disputes.
  

85. What is the process for conducting due diligence when acquiring a company?

Due diligence involves:

• Reviewing financial statements, tax records, and contracts of the target company.
  
• Assessing any existing legal disputes or liabilities.
  
• Verifying ownership of intellectual property and physical assets.
  
• Consulting with lawyers and auditors to ensure that all risks are accounted for before acquisition.
  

86. What insurance is mandatory for businesses in Egypt?

Businesses must have:

• Social insurance for employees.
  
• Workplace injury insurance for specific industries.
  
• Fire and liability insurance for offices, factories, and warehouses. Consult with an insurance provider to ensure all necessary ​coverage is in place.
  

87. What is the procedure for transferring shares in a limited liability company (LLC)?

Transferring shares in an LLC requires:

• Approval from the General Assembly or Board of Directors.
  
• Submission of a share transfer agreement to GAFI.
  
• Updating the commercial registry and ensuring compliance with all tax obligations. The transfer process must comply with ​the company’s Articles of Association.
  

88. What is the role of GAFI’s Investor Support and Aftercare Department?

The Investor Support and Aftercare Department helps investors by:

• Assisting with regulatory compliance after a company is established.
  
• Offering support with expansion or diversification plans.
  
• Providing mediation services for disputes with government agencies. GAFI aims to ensure that foreign investors continue ​to succeed after their initial investment.
  

89. Are there any restrictions on repatriating dividends in Egypt?

There are no restrictions on repatriating dividends, provided:

• All tax obligations have been met.
  
• Dividends are repatriated through an Egyptian bank.
  
• Approval is obtained from GAFI if the company operates in a regulated sector such as banking or insurance.
  

90. What happens if my investment project is delayed?

If your project is delayed, you can:

• Apply for an extension by submitting a formal request to GAFI.
  
• Justify the delay with valid reasons such as regulatory hurdles, financing issues, or unforeseen circumstances. Failure to ​complete the project within the approved timeline may result in penalties or cancellation of incentives.
  

91. How do I convert an existing company into a free zone company?

To convert an existing company into a free zone company:

• Apply to GAFI or the relevant Free Zone Authority with your conversion request.
  
• Submit the necessary company documents, including proof of existing operations and the commercial registry.
  
• The company must comply with the free zone’s tax exemption and operational requirements.
  

These additional questions and answers address even more intricate aspects of investing and operating in Egypt, providing ​foreign investors with a comprehensive guide to navigate the Egyptian business environment.

92. Can I open a bank account in Egypt remotely as a foreign investor?

As a foreign investor, most Egyptian banks require you to visit in person to open a corporate account, due to anti-money ​laundering regulations and KYC (Know Your Customer) requirements. However, some international banks may offer remote ​account setup for existing clients, depending on your previous relationships with the bank.

93. What is the process for obtaining utility connections (water, electricity, gas) for a business in Egypt?

To obtain utility connections for your business:

• Submit a request to the relevant utility company, providing your company registration documents, location ​lease/ownership papers, and identification.
  
• Pay the connection fees and any applicable deposits.
  
• Most utility connections (water, electricity, gas) are managed by government entities, and the process typically takes a ​few weeks.
  

94. How can I access public procurement or government contracts as a foreign investor?

To participate in public procurement:

• Register your company with the Egyptian Tenders and Auctions Authority.
  
• Ensure compliance with the procurement law, which may require partnerships with local firms for certain contracts.
  
• Review government tenders published in the Official Gazette or on the government procurement portal. Some contracts ​may prioritize local content, so having an Egyptian partner could enhance your chances.
  

95. Are there specific cybersecurity regulations for companies operating in Egypt?

Yes, Egypt has enacted laws to ensure data protection and cybersecurity. Businesses must comply with:

• The Personal Data Protection Law (Law No. 151 of 2020), which mandates securing personal data and obtaining consent ​before processing it.
  
• Ensure the company's IT systems are compliant with cybersecurity protocols, particularly if you handle sensitive customer ​information. Failure to comply can lead to penalties, including fines or business restrictions.
  

96. What documents are required to hire foreign employees in Egypt?

To hire foreign employees, you need to:

• Obtain a work permit for the employee through the Ministry of Manpower.
  
• Submit documents including the employee's passport, employment contract, educational qualifications, and medical ​clearance.
  
• Pay the applicable work permit fees. The foreign employee must also apply for a residency visa once the work permit is ​approved.
  

97. What are the rules for transferring profits from my Egyptian business to my home country?

Profit transfer from Egypt to a foreign country requires:

• Paying all applicable taxes and fulfilling local obligations.
  
• Using a bank registered in Egypt to handle the foreign exchange transactions.
  
• There are no specific restrictions on profit repatriation, but you must ensure all compliance checks with GAFI and the Central ​Bank of Egypt (CBE) are met.
  

98. What are the mandatory employment benefits in Egypt?

Mandatory employment benefits in Egypt include:

• Social insurance contributions by both the employer and employee.
  
• Paid annual leave of at least 21 days, which increases with the employee's length of service.
  
• Sick leave and maternity leave for women (at least 90 days). Employers are also required to provide safe working ​conditions and comply with labor law standards.
  

99. What are the penalties for non-compliance with Egyptian labor laws?

Failure to comply with labor laws can result in:

• Fines or penalties imposed by the Ministry of Manpower.
  
• In severe cases, business suspension or legal action by employees.
  
• Reputational damage and difficulty in obtaining future permits or licenses. Employers must ensure they adhere to all laws ​regarding wages, working hours, and employee rights.
  

100. Can I use an Egyptian branch of a foreign company to enter the market?

Yes, a branch office of a foreign company can operate in Egypt, provided:

• The branch is registered with GAFI and follows the required commercial registration process.
  
• The branch must comply with Egyptian laws, including taxation, labor laws, and reporting requirements. This setup is ​ideal for conducting project-specific work or representing the parent company in Egypt.
  

101. How can I protect my business against legal disputes in Egypt?

To protect your business:

• Draft clear contracts with all partners, suppliers, and employees, specifying terms and dispute resolution mechanisms.
  
• Include arbitration clauses that may allow disputes to be settled outside of court.
  
• Register with GAFI's Investors Dispute Settlement Center to mediate disputes before escalating to court. Taking ​preventive steps like legal counsel and compliance audits can also mitigate risks.
  

102. What are the regulations for importing equipment for a manufacturing plant in Egypt?

To import equipment for manufacturing:

• Register with the General Organization for Export and Import Control (GOEIC).
  
• Obtain import permits and ensure the equipment complies with Egyptian safety and technical standards.
  
• Pay any applicable customs duties, unless exempted under a free zone or special economic agreement.
  

103. How do I convert my private business into a public company in Egypt?

Converting a private business into a public company requires:

• Obtaining approval from GAFI and conducting a General Assembly to pass a resolution on the conversion.
  
• Filing necessary documents such as updated Articles of Association and applying to list on the Egyptian Stock Exchange ​(EGX).
  
• Public companies must meet specific capital requirements and disclosure standards as set by the Egyptian Financial ​Regulatory Authority (FRA).
  

104. Are there specific incentives for green or eco-friendly investments in Egypt?

Yes, Egypt promotes green investments by offering:

• Tax incentives for projects that focus on renewable energy, recycling, and sustainable development.
  
• Funding and grants from government and international organizations for eco-friendly initiatives.
  
• GAFI can assist investors in accessing environmental permits and approvals from relevant authorities.
  

105. How do I report corporate tax in Egypt, and what are the deadlines?

Corporate tax reporting in Egypt involves:

• Filing annual tax returns with the Egyptian Tax Authority (ETA) based on your company’s fiscal year.
  
• The deadline for filing is typically four months after the fiscal year ends.
  
• Taxes on profits are due at the time of filing, and penalties apply for late payments.
  

106. Can I establish a holding company in Egypt, and what are the advantages?

Yes, holding companies can be established in Egypt under the Companies Law (Law No. 159 of 1981) or the Investment Law ​(Law No. 72 of 2017). The advantages include:

• Ownership of multiple subsidiary companies under a single structure.
  
• Access to tax planning benefits and easier capital flow management between subsidiaries.
  
• Facilitating strategic management of different business ventures from one entity.
  

107. What types of licenses are required to operate an export-oriented business in Egypt?

An export-oriented business in Egypt requires:

• An export license from the Ministry of Trade and Industry.
  
• Compliance with customs procedures, including registering with GOEIC.
  
• Meeting quality control standards for products destined for international markets. Export companies may also benefit ​from duty-free zones or export subsidies.
  

108. What financial reporting standards are used in Egypt?

Egypt follows International Financial Reporting Standards (IFRS) for corporate financial reporting. Companies must:

• Prepare annual financial statements according to IFRS.
  
• Submit reports to the Egyptian Financial Regulatory Authority (FRA) and the Tax Authority.
  
• Ensure audits are conducted by a registered Certified Public Accountant (CPA).
  

109. What are the options for raising capital for a business in Egypt?

To raise capital, businesses can:

• Issue shares in the stock market through an Initial Public Offering (IPO).
  
• Apply for business loans or credit lines from local or international banks.
  
• Attract venture capital or private equity by partnering with local investment firms. GAFI also provides assistance in ​identifying local investors and financing opportunities.
  

110. How do I apply for a tax exemption or holiday in Egypt?

To apply for a tax exemption:

• Your business must be located in a special economic zone or free zone.
  
• Submit an application through GAFI, providing details about the business, investment size, and industry.
  
• Tax holidays are often granted to strategic sectors like renewable energy, tourism, and manufacturing. Approval is ​subject to government review, and the exemption duration depends on the sector and investment size.
  

111. What is the process for opening a franchise in Egypt as a foreign investor?

To open a franchise in Egypt:

• You need to sign a franchise agreement with the franchisor.
  
• Register the franchise with the General Authority for Investment and Free Zones (GAFI).
  
• Obtain necessary licenses and comply with local laws regarding intellectual property, trademark registration, and ​commercial law.
  
• Ensure the franchise complies with local marketing, labor, and tax regulations.
  

112. How do I handle intellectual property (IP) protection for my business in Egypt?

To protect intellectual property (IP) in Egypt:

• Register your trademark, patents, and copyrights with the Egyptian Patent Office and the Trade Mark and Industrial ​Designs Office.
  
• Egypt is a member of the World Intellectual Property Organization (WIPO) and abides by international IP agreements ​such as the Paris Convention.
  
• You may need to monitor and enforce your IP rights to prevent infringements through local legal channels.
  

113. What sectors are prioritized for foreign direct investment (FDI) in Egypt?

Egypt prioritizes FDI in sectors such as:

• Renewable energy (solar and wind).
  
• Tourism.
  
• Agriculture and agro-industries.
  
• Manufacturing (especially electronics and automotive).
  
• Technology and telecommunications. These sectors often receive incentives, such as tax breaks and fast-tracked licensing.
  

114. How does the Egyptian government support small and medium enterprises (SMEs)?

The Egyptian government supports SMEs through:

• Financial incentives like tax exemptions and low-interest loans.
  
• Access to government programs such as the Small and Medium Enterprises Development Agency (SMEDA), which provides ​funding, training, and business development services.
  
• GAFI offers assistance with business registration and licensing for SMEs.
  

115. Are there restrictions on foreign ownership of land and property in Egypt?

Yes, foreign investors face some restrictions:

• Foreigners can buy property, but in some strategic areas like Sinai, ownership is subject to special approvals.
  
• Foreigners can lease land for up to 99 years but need approval for buying land in protected zones.
  
• It's advisable to consult a legal expert to navigate property ownership laws.
  

116. What happens if I need to close my business in Egypt?

Closing a business in Egypt involves:

• Filing for liquidation through GAFI and appointing a liquidator.
  
• Settling all debts and liabilities, paying taxes, and informing employees.
  
• Submitting the final liquidation report to the Commercial Registry and canceling business licenses. The process can take ​several months depending on the complexity of the business.
  

117. How can I attract local talent for my business in Egypt?

To attract local talent:

• Advertise job openings on local job boards, recruitment agencies, and through social media platforms like LinkedIn.
  
• Offer competitive salaries and benefits (healthcare, bonuses, etc.).
  
• Highlight opportunities for career development and training programs. Partnering with universities and career fairs can ​also help in attracting fresh talent.
  

118. Are there any restrictions on importing labor from abroad for my project?

Yes, there are some restrictions:

• Foreign employees require a work permit from the Ministry of Manpower.
  
• You must ensure the company maintains a workforce ratio, where no more than 10% of employees are foreign nationals, ​except for certain sectors.
  
• Additional fees and labor regulations apply for foreign workers.
  

119. What are the tax incentives available for setting up in a free zone in Egypt?

Free zone businesses enjoy:

• Exemption from import/export taxes and customs duties.
  
• No income taxes on profits generated from export activities.
  
• No value-added tax (VAT) or sales tax within the zone.
  
• Full repatriation of profits without restrictions. Free zones are particularly attractive for export-oriented businesses.
  

120. How does Egypt handle double taxation for foreign investors?

Egypt has double taxation agreements (DTAs) with several countries to avoid taxing the same income twice. Investors:

• Can claim tax credits or exemptions on foreign-sourced income depending on the treaty between Egypt and their home ​country.
  
• Need to submit the required documentation to the Egyptian Tax Authority to benefit from these treaties.
  

121. How can I acquire a business license in Egypt as a foreign investor?

To acquire a business license:

• Apply through GAFI's Investor Services Center by submitting company registration documents, your business plan, and any ​required industry-specific approvals.
  
• Comply with local regulations related to your industry (such as environmental and health safety standards).
  
• Pay the applicable license fees.
  

122. What are the rules for acquiring a local business or company in Egypt?

Acquiring a local business involves:

• Performing due diligence on the target company’s financials, legal standing, and licenses.
  
• Negotiating terms of the acquisition and drafting agreements in compliance with Egyptian law.
  
• Registering the acquisition with GAFI and updating the Commercial Registry. The acquisition must comply with Egypt’s ​merger and acquisition regulations.
  

123. Are there any corporate social responsibility (CSR) obligations for businesses in Egypt?

Although not mandatory, many companies in Egypt voluntarily engage in corporate social responsibility (CSR) by:

• Supporting community development projects, education, or environmental sustainability.
  
• Egyptian businesses are encouraged to align with sustainable development goals (SDGs). Some sectors, like oil and gas, ​are expected to meet CSR standards.
  

124. Can I transfer funds freely between Egypt and my home country?

Yes, foreign investors can transfer funds freely, provided:

• All tax obligations are met, and the company complies with Central Bank of Egypt regulations.
  
• Transfers must go through licensed banks operating in Egypt.
  
• Repatriation of profits, dividends, and capital is permitted, but it must be reported.
  

125. Are there any special rules for real estate investments in Egypt?

Yes, when investing in real estate:

• Foreign investors are allowed to purchase real estate, but in certain areas, like Sinai, approval is required.
  
• The Egyptian real estate law ensures protection for investors but requires proper documentation and due diligence on ​titles.
  
• Be mindful of local zoning laws and urban planning regulations.
  

126. How can I protect my business from currency fluctuations in Egypt?

To protect your business from currency fluctuations:

• Consider hedging against currency risks by using forward contracts or currency swaps.
  
• Work with local banks to manage currency risk.
  
• Stay updated on foreign exchange regulations from the Central Bank of Egypt to understand limits on currency ​transactions.
  

127. What are the environmental regulations for establishing a manufacturing business in Egypt?

Establishing a manufacturing business requires compliance with:

• Environmental protection laws overseen by the Egyptian Environmental Affairs Agency (EEAA).
  
• You may need to perform an Environmental Impact Assessment (EIA) before starting operations.
  
• Businesses must adhere to laws regarding waste disposal, pollution control, and resource conservation.
  

128. Are there any regional investment zones that offer special incentives in Egypt?

Yes, Egypt has several regional investment zones offering incentives, such as:

• Special Economic Zones (SEZs) and Free Zones, which offer tax holidays, duty-free imports, and simplified customs ​procedures.
  
• Sinai Development Zones and Upper Egypt Investment Zones, which have special provisions to attract investments in ​tourism, mining, and renewable energy. Investors in these zones may also benefit from streamlined regulatory processes.
  

129. What kind of insurance is required for a business in Egypt?

Businesses in Egypt typically need:

• Social insurance for employees (mandatory).
  
• Property and liability insurance for business premises.
  
• Professional liability and product liability insurance depending on the industry.
  
• Some industries may require environmental or worker compensation insurance.
  

130. What are the benefits of establishing an R&D center in Egypt?

Setting up an R&D center in Egypt offers:

• Access to highly skilled talent at competitive costs.
  
• Potential for government grants and tax incentives under the Investment Law (Law No. 72 of 2017).
  
• Partnerships with local universities and research institutions for innovation and technological development.
  

This additional list covers more in-depth aspects related to foreign investment in Egypt. Feel free to use these questions and ​answers on your website for a comprehensive FAQ section!