EGYPT Law and Practice Contributed by: Mohamed Hashish, Heba El Abd, Farida Rezk, Omar Aboul-Ella, Mariam Rabie and Mohamed Selim, Soliman, Hashish & Partners
on the company’s activities, a company may be formed under different laws, such as the Capital
Investment (FDI) Data to GAFI, which includes information on, inter alia, foreign shareholders, corporate and financial information, pursuant to Decree No 2731 of 2019, as follows: • within 30 days of the incorporation date or the date of any change in the non-Egyptian- owned company’s capital, purpose, share - holding structure or board members (as the case may be); • within 45 days of the end of each quarter of the calendar year; and • within four months of the end of the relevant non-Egyptian-owned company’s financial year. Further, failure to satisfy the FDI requirement will entail a penalty fine of EGP50,000 for non- Egyptian-owned companies, in accordance with The one-tier management structure, where one governing body is responsible for management and decision-making, is widely considered the most common management structure in Egypt. For example, a JSC primarily consists of the board of directors, which is responsible for overseeing the operations of the company and making major decisions; they are elected or appointed by the shareholders of such com - pany. Further, the executive management may be chaired by a CEO or managing director who is responsible for the day-to-day operations of the company and executing resolutions and deci - sions taken by the board of directors. Further, the general assembly of the company generally has the authority to elect or dismiss directors, approve financial statements, increase the com - pany’s capital and take other important deci - sions in relation to the company. the Investment Law No 72 of 2017. 3.4 Management Structures
Markets Law No 95 of 1992. 3.2 Incorporation Process
An incorporation application is submitted to the General Authority for Investment and Free Zones (GAFI), which is the regulatory authority over - seeing the incorporation of companies in Egypt. Attached to such incorporation applications are a set of documents including corporate docu - ments related to the shareholders or partners, passports of the directors or shareholders, the auditor’s bank certificate and the lease agree - ment of the company’s premises. The Articles of Association and/or statutes of the company are then issued by GAFI after the provision of the relevant details such as share capital, auditor’s information, address, duration of the company, directors/managers and the company’s commercial register. The incorporation process may vary depending on the readiness of all necessary documents required to be submitted at the time of incorpo - ration. However, once all documents are ready, the incorporation process usually takes from one to two weeks. However, GAFI offers VIP services for the incorporation process for an additional charge of EGP10,000 (equivalent to approxi - mately USD198). 3.3 Ongoing Reporting and Disclosure Obligations Foreign investments are subject to review and screening by GAFI. All companies incorporated in Egypt that are entirely or partially owned by non-Egyptian investors (collectively, non-Egyp - tian-owned companies), regardless of the per - centage of the ownership or the applicable legal regime, must regularly submit their Foreign Direct
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