FAQS

on .

What are the guarantees and exemptions of law No. 8 for inland investment companies?

Granted Guarantees

1. A project could be wholly owned by foreigners.
2. Guarantees against nationalization and expropriation of the project.
3. Output of the project is not subject to price control.
4. Projects are allowed to repatriate their capital and profits.
5. Foreign experts salaries are exempt from income tax if their stay in Egypt is for less than one year.
6. Imported capital assets and construction materials required to establish an approved project are subject to a unified import duty rate of 5%.
8. Exemption of contracts:
All related contracts to the companies activities such as (articles of incorporation, land deed, loan and mortgage) are exempted from the fiscal stamps and authentication fees for three years from the date on which such companies are registered in the Commercial Register.
9. Egyptian joint stock companies under Law 8 of 1997 whose shares are registered with the Egyptian Stock Exchange will enjoy an exemption from the corporate tax on their profits equal to the Central Bank of Egypt's lending or discount rate.
10. Interest from bonds issued by joint-stock companies under Law 8 of 1997 is exempt from the tax on income from moveable capital provided that the bonds are offered for public subscription and that they are registered in the Egyptian Stock Exchange.

What are the fields of investment ?

  •     Reclamation and cultivation of barren and desert lands of either of them
  •     Animal , poultry and fish production .
  •     Manufacturing and mining .
  •     Bis.Preparation and development of selected industrial zones .
  •     Hotels , motels , hotel apartments , tourist villages and tourist transportation .
  •     Refrigerated transportation of goods , refrigerators for the purposes of storing crops , manufactured products and foodstuffs , container stations and grain silos .
  •     Air transport and directly related services .
  •     Overseas maritime transport .
  •     Petroleum services in support of drilling , exploration as well as gas transport and delivery .
  •     Housing complexes for the purposes of full , unfurnished lease for non-commercial uses.
  •     Infrastructure operation including potable water , sewage , electricity , roads and communications beside underground multi-story garages.
  •     Hospitals , medical and therapeutic centers that offer 10 % of their capacities free of charge .
  •     Financial lease .
  •     Underwriting of subscription to securities .
  •     Venture capital .
  •     Production of computer programs and systems .
  •     Social Fund for Development-funded projects .
  •     Development of new urban zones .
  •     Software designing and producing the electronic content.
  •     Establishment , management of technological zones .
  •     Credit classification .
  •     Deductions .
  •     Establishment , management and operation or maintenance of river transportation for groups within and between new cities and urban communities.
  •     The management of performance for industrial and utilities projects.
  •     The gathering of rubbish and wastes of production and services activities and their treatment.

What are the documents required to incorporate a company ?

The required documents:
  • An application to establish the company should be submitted on the special form prepared for such purpose.
  • The contract of the company should be in accordance with the set contract format and the type of the company that has been selected [ a joint stock company , a limited partnership]
  • In the case of free zones the approval clauses should be included in the memorandum of association.
  • A certificate obtained from the Commercial Register proving that the name of the company is unique and shall not cause confusion.
  • The power of attorney to take the necessary procedures to incorporate the company.
  •  If your project is to be located in one of the governorates of North or South Sinai , you shall be requested to attach to your application a landscape map showing the site of your project.
  •  If the capital of the company contains a corporeal share , it should be by the capital market authority.
  • A bank certificate proving that 10% of the issued capital has been deposited [ in the case of joint stock companies ] or that the amount of capital is paid in full [ in the case of a limited liability company].

The required documents to fix The Time of commencing the production

  •     The plan of the site
  •     The title deed of the company s location
  •     The official paper of receiving the land
  •     The contracting agreements of buildings The primitive and final building license
  •     The official paper of receiving the buildings The primitive and final power supply certificate
  •     The official paper of launching the electric current The first 5 electricity invoices + a statement of the monthly quantity of electricity consumption
  •     A statement of the employment development in the company since the employment date until this date [ month and number ]
  •     A statement of the solar consumption starting from the date of purchasing the first quantity until that date
  •     A detailed description of the production process stages
  •     A statement of the production lines The customs license [equipment and machinery ]
  •     An official paper of fixing the production lines
  •     The first 5 permits of adding raw materials into the stock stores
  •     The first 5 permits of adding packaging materials into the stock stores
  •     The first 5 permits of getting the raw material out of the stock stores for the production
  •     The first 5 permits of getting the packaging materials out of the stock stores for the production
  •     The first 5 permits of adding the raw product into the stock stores
  •     The first 5 sale invoices The fiscal position or the inaugural budget
  •     The company s attitude of treating the remnants of the industrial waste
  •     An assignment for the person who is going to sign on the committee s report
  •     A copy of the commercial register of the company and the tax card.

What are the required documents to set the date of commencing the activity ?

  •     The plan of the site
  •     The title deed of the company s location
  •     The contracting agreements of buildings
  •     The primary and final building license
  •     The official paper of receiving the buildings
  •     The primary and final power supply certificate
  •     The official paper of launching the electric current
  •     The first 5 electricity invoices + a statement of the monthly quantity of electricity consumption
  •     A statement of the employment development in the company since the employment date until this date [ month and number ]
  •     A statement of the solar consumption starting from the date of purchasing the first quantity until that date
  •     A detailed description of the production process stages
  •     A statement of the production lines
  •     The customs license [equipment and machinery ]
  •     An official paper of fixing the production lines
  •     The first 5 permits of adding raw materials into the stock stores
  •     The first 5 permits of adding packaging materials into the stock stores
  •     The first 5 permits of getting the raw material out of the stock stores for the production
  •     The first 5 permits of getting the packaging materials out of the stock stores for the production
  •     The first 5 permits of adding the raw product into the stock stores
  •     The first 5 sale invoices
  •     The fiscal position or the inaugural budget
  •     The company's attitude of treating the remnants of the industrial waste
  •     An assignment for the person who is going to sign on the committee's report
  •     A copy of the commercial register of the company and the tax card.
  •     An application comprising name, nationality , passport number and job .
  •     The passport itself to be checked .
  •     Social insurance format.
  •     A certificate of AIDS clearance from a governmental hospital .
  •     The applications of the free zone projects should be submitted by the concerned zone.
  •     A letter from the concerned sector for projects under implementation.
  •     In case of renewing the work permit,
  •     An application from the company to the head of the sector.
  •     A copy of the previous work permit .
  •     A photocopy of the passport .

How to get a recommendation of five year residence?

First, the beneficiary of the five year accommodation:

For joint stock companies:
  •     The chairman of B.O.D
  •     CEO + Members of Board of Directors
For limited liability companies:
  •     The general manager.

What are the required procedures to register a foreign company's branch?

  •     An application to the head of the investment commercial registration
  •     A photocopy of the constitutive structure of the head office.
  •     A copy of the head company resolution to assign a manager for the branch in Egypt
  •     A copy of the head company declaration of having no previous branch in Egypt
  •     A bank certificate proving transferring an amount of hard currency equal to LE 5000 under the branch name.
  •     A copy of the possession or lease contract for the place , or the contracting contract approval .
  •     The approvals of the concerned ministry according to the company's activity and the ministry of supply.
  •     An Arabic version of said documents, should be endorsed by Egyptian Embassy.

How to acquire a work permit for foreign incorporation branch manager?

  • A recent information certificate from the investment commercial registration with the applicant's post .
  • A certificate of AIDS clearance from any governmental hospital
  • A copy of the foreign applicant's passport .
  • A recent information certificate from the Commercial Register
  • A copy of the previous permit

What are the procedures of recruiting foreign employment?

As for recruiting employees and getting work permits for them :

Projects under implementation:
The company has the right to recruit any number without restriction to legal ratio on the base that these employees are appropriately required for this period .

As for projects that started their activity, they are restricted to the 10% ratio

The required documents:

  •     An application to the head of the investment service sector identifying the required jobs.
  •     A photocopy of the required employees passport .