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New Law has been issued to boost and Increase Foreign Investment in Egypt in accordance with Egypt’s 2030 Vision/Written by our Associate Ahmed Rezk

LAW 173

“New Law has been issued to boost and Increase Foreign Investment in Egypt in accordance with Egypt’s 2030 Vision”

On 29 October 2023, Egypt issued Law No. 173 of 2023 to amend the Importers Registry Law No. 121 of 1982 by allowing the registering of foreign companies in the register of importers.

Under law No.173 of 2023, the possibility of registering joint-stock companies, limited partnerships by shares, limited liability companies, or companies of persons not owned by Egyptians or owned by them at a percentage less than (51%).

Which considers a fundamental change in the registration conditions issued by law no. No. 121 of 1982. This amendment now allows registration for foreign companies that are not owned by Egyptians, which increases the proportion of foreign investments in Egypt.

After reviewing the above-mentioned new law update, it raises our mind to know the requirements for registration of the companies in the importer’s register are the following: –

  • The company must be registered in the CR, and for partnerships and limited liability companies, it must have been registered for at least one year, and the volume of business in the last year, based on the tax return submitted to the Tax Authority, must not be less than five million pounds.
  • The company’s head office must be in the Arab Republic of Egypt, and it was established in accordance with the provisions of Egyptian laws
  • One of the company’s purposes is to import goods for the purpose of trading.
  • The paid capital of the partnership and the limited liability company shall not be less than two million pounds, and this is proven by the latest balance Sheet submitted by the company to the Tax Authority for the previous fiscal year, or by submitting a certificate stating that the capital has been deposited in one of the banks registered with the Central Bank in the event that the company starts its activity.
  • The issued capital of joint stock companies and partnerships limited by shares shall not be less than five million pounds, and “the possibility of registering joint-stock companies, limited partnerships by shares, limited liability companies, or companies of persons not owned by Egyptians or owned by them at a percentage less than (51%)” according to the new law which contrary to this requirement in provisions of Law No. 121 of 1982, which was limited The possibility of registration to companies that are entirely owned by Egyptians or owned by at least 51% of Egyptians, The company manager responsible for importing must be of Egyptian nationality. This means that the amendment exception doesn’t exceed the condition of the nationality of the manager.According to law No.173 of 2023, Companies are allowed to register in the importer’s registers for a period up to 10 years from the effective date of the law. According to the provision of the law an extension for this period by an additional ten years but kindly note that’s additional extension should be by a decision of the Council of Ministers based on the proposal of the Minister concerned with foreign trade affairs.The new law came into force, but its enforcement is waiting for the executive regulations to be issued because the new law does not clarify the procedures or required documents for foreign companies.Finally, there is no doubt that the amendment issued by the new law on the conditions of registration in the importers register is a positive development step for the economic system in Egypt in accordance with the “Egypt 2030 vision”, This will increase foreign investment in Egypt and give an opportunity to foreign companies, especially companies interested in the field of manufacturing, to increase their investment in Egypt.
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