The General Authority for Investment and Free Zones (GAFI) Board of Directors has approved new regulations to facilitate the residency of foreign investors in Egypt, as part of ongoing efforts to enhance the investment climate and attract more foreign direct investment into the country. Under the new regulations, a serious investor who is actively implementing their investment project is now entitled to a renewable five-year continuous residency, valid for the entire duration of the project. Details of the New Residency Regulations Counselor Mohamed Abdel Wahab, CEO of GAFI, stated that these regulations are a direct application of the Investment Law, granting residency based on: the purpose of the company, paid-in capital, number of employees, and the business activity location. He added that these regulations are designed to offer greater incentives for serious investments, and to encourage foreign investors to invest in specific sectors, activities, and regions prioritized by the Egyptian state for economic development and job creation. Residency Eligibility Criteria – Based on a Points System The new system assigns a weighted score to several qualifying conditions for granting residency to foreign investors: Purpose of the company – 20% Paid-in capital – 30% Number of employees – 30% Location of business activity – 20% Investors accumulating sufficient points are eligible for a 5-year renewable residency throughout the lifespan of the project. Priority Sectors for Residency Facilitation The system gives priority to investors operating in the following key sectors: Renewable energy Heavy industries Pre-university education Healthcare Petroleum Water desalination Other targeted sectors aligned with national development goals This policy marks a significant step in integrating residency incentives with Egypt’s investment strategy, reinforcing confidence among foreign investors and promoting sustainable economic growth.
Procedures for establishing limited liability companies in Egypt
Establishing companies in Egypt has become a much easier process nowadays, especially with the issuance of the new Investment Law No. 72 of 2017, which represents a combination of incentives, customs exemptions, facilitation of procedures and required documents, in addition to many guarantees and other means to protect investors. A Limited Liability Company (LLC) is considered a hybrid between partnerships and joint-stock companies. It is based on mutual trust between the partners, and each partner is only liable for the company’s debts to the extent of their share in the capital. Before delving into the procedures for establishing an LLC, let us first highlight the most important characteristics of the company and the information required in the incorporation contract. Key Characteristics of a Limited Liability Company The company’s capital is divided into shares, not stocks, and thus cannot be traded on the stock exchange. The law does not stipulate a specific minimum capital amount. The number of partners must not be fewer than two and not more than fifty. Its incorporation and liquidation procedures are among the simplest compared to other company types. Suitable for young entrepreneurs wishing to start a simple and low-cost private project. Partners are liable only to the extent of their shares in the capital, and their personal assets are not subject to claims. The company is managed by an individual chosen from among the partners, whose name must be registered in the company’s incorporation contract. Government employees are not allowed to join the company. Partners can transfer their shares through a written contract signed by both the transferring and new partner during the Extraordinary General Assembly. The procedures for establishing a Limited Liability Company in Egypt can be summarized in the following points: Drafting the preliminary contract and the Articles of Association Security inquiry form, in case of foreign partners or managers Obtaining a certificate confirming no confusion in the trade name Opening a bank account for the company Filing a company tracking model Reviewing documents to ensure completeness Paying the required fees Following up on the issuance of the incorporation decision and delivering the original documents to the founders’ agent Issuance of the commercial registration application Issuance of the incorporation decision
Procedures for establishing limited liability companies in Egypt
أصبحت إجراءات تأسيس الشركات فى مصر أمرا يسيرا فى الوقت الراهن خاصة مع صدور قانون الاستثمار الجديد، رقم 72 لسنة 2017حيث يعد مزيج من الحوافز والإعفاءات الجمركية، والتسهيلات فى الإجراءات والمستندات المطلوبة إلى جانب العديد من الضمانات والوسائل الاخرى لحماية المستثمرين. وتعتبر الشركة ذات المسؤولية المحدودة هي مزيج بين شركات الأشخاص وشركات الأموال تقوم على أساس الثقة المتبادلة بين الشركاء ويكون كل شريك مسؤول عن ديون الشركة في حدود حصته في رأس المال فقط، وقبل أن التطرق لإجراءات تأسيس شركة ذات مسؤولية محدودة سنلقي الضوء أولاً على أهم خصائص الشركة، والبيانات اللازم ذكرها في عقد التأسيس. أهم خصائص الشركة ذات المسؤولية المحدودة رأس مال الشركة عبارة عن حصص وليس أسهم لذا لا يمكن تداولها في البورصة لم يشترط القانون قيمة مالية محددة لرأس المال. لا يقل عدد أفرادها عن إثنين ولا يزيد عن خمسين فرد. إجراءات تأسيسها وتصفيتها تعد الأبسط بين أنواع الشركات الأخرى. مناسبة للشباب الذي يرغب في إقامة مشروع خاص بسيط وغير مكلف. مسؤولية الشركاء تكون في حدود حصصهم في رأس المال، ولا يتم الرجوع على أموالهم الخاصة. تدار الشركة بواسطة من يتم إختياره من الشركاء على أن يسجل إسمه في عقد تأسيس الشركة. لا يمكن إنضمام موظفي القطاع الحكومي إلى الشركة. يمكن تنازل الشركاء عن حصصهم من خلال كتابة عقد يوقع عليه كل من الشريك المتنازل والشريك الجديد أثناء إنعقاد الجمعية العمومية غير العادية. وتتلخص إجراءات تأسيس الشركات ذات المسؤولية المحدودة فى مصر فى النقاط التالية : العقد الإبتدائى والنظام الأساسى نموذج إستعلامات أمنية، فى حالة الشركاء أو المديرين الأجانب إستخراج شهادة عدم إلتباس الإسم التجارى فتح حساب بنكى للشركة نموذج متابعة خط سير ملف الشركة مراجعة المستندات للتأكد من استيفاءها دفع الرسوم المقررة متابعة صدور قرار التأسيس، وتسليم أصول الأوراق إلى وكيل المؤسسين صرف طلب القيد من السجل التجارى صدور قرار التأسيس