Egypt: GAFI: The Latest Decisions Issued To Develop Procedures For Investors In Egypt

Last Updated: 24 January 2019
Article by Omaima Fawzy

In light of the remarkable development in the climate of investment in the Arab Republic of Egypt, which is working to attract investments, through establishing of companies and branches of companies and representative offices of major foreign companies, which led to the Minister of Investment and International Cooperation HE Sahar Nasr to issue numerous decisions and circulars to facilitate procedures for investment and assistance in the completion of services related to investors in the least time.

The most important of these decisions are listed and explained below:

Decision No. 208 of the year 2018: related to Encouraging the work of the Entrepreneurs Initiative "Fakretak mashroaak" ( "your idea is your project") in this decision a company's idea of entrepreneurship is explained to encourage the creation and development of entrepreneurship and start-up companies on the basis, the most important of which is the provision of the necessary funding and making use of the ideas of the project through launching successful projects and encouraging business accelerators. This is achieved through proposing and presenting programs of support for these projects. Moreover, the General Authority for Investment and Free Zones works towards providing spaces equipped with a state-of-the-art technology and tools to provide services for the Entrepreneurs Initiative- "Fakretak mashroaak".

Decision No.527 Dated 6th September 2018 issued by the Chief Executive Officer of General Authority for Investment and Free Zones is related to the new amendments of the procedures of liquidation of companies, including obligation of companies to publish the status of the company under the liquidation procedures in the prospectus of the companies (earlier the procedure was to publish in two official gazette only) before the commencement of liquidation proceedings of the second stage of liquidation.

Decision No.736 Dated 12th November 2018 issued by the Chief Executive Officer of General Authority for Investment and Free Zones is related to the new regulation of obligation of joint-stock companies. Shareholder companies incorporated under Law No. 4 of the year 2018 as amended by Law No.159 of the year 1981 shall abide to regularize their position according to item (e) from the first paragraph of Article No. 17 replaced by this law within period not exceeding one year. And this is through registration of the shares of these companies in Misr Clearing, Depository and Central Depository and submitting the certificate of deposit of securities to the company.

Decision No.742 Dated 13th November 2018 is related to the regulations of the work of representative offices of foreign companies in Egypt which states in Article No.1 from the above-mentioned decision that General Authority for Investment and Free Zones obliges the representative offices in Egypt to submit to the authority at the being of every year a statement with names of all employees working in the representative office and the work initiated during the year and any amendments and what to send to the parent company and also committed to provide a timetable for the completed studies. According to Article No. 3, the renewal of the representative offices when the period ends depends on their compliance with Article One. Important amendment is that representative office incorporation certificates are renewed for not more than 3 years within which the mother company shall determine whether it will incorporation a Company or a branch in Egypt, otherwise the Representative Office of the Foreign Company will be removed from the Registry.

Coping with the technology, the authority issued Circular No. (4) Dated 17th October 2018 issued by the Chief Executive Officer of General Authority for Investment and Free Zones related to the regulations of participation of board members in the attendance of the boards of directors of companies through telephone or video calls or video conferencing call and this is according to the regulation sated by General Authority for Investment and Free Zones, the most important of which is:

  • The Company's Articles of Association shall include the provision which permits the Board of Directors Meetings to be held through telephone or video calls or video conferencing call and it shall be recorded; the minutes and discussions in the Board of Directors Meeting shall be recorded but this is under condition that the majority of the members of the Board of Directors stipulated in the Articles of Association attends;
  • The proceedings of the Meeting Minutes must be recorded on CD and saved in the headquarters of the company and shall allow the company to organize all necessary procedures to ensure the safety and protection of the means of communication used in the participation of members;
  • The signatures of the attending members of the board of directors should be stated in the attendance sheet so that the secretary should mention before the names of members who attended via telephone or video calls or video conferencing call the following statement ('participated through telephone or video calls or video conferencing call').

Circular No. (5) Dated 29th October 2018 issued by the Chief Executive Officer of General Authority for Investment and Free Zones is related to the regulations of the period of appointment of the board of directors' members. The authority obliges joint stock companies with the following rules regulating the appointment of the Board of Directors of companies as following:

  • The period of appointment of the board of directors members is 3 years with the exception of the first board of directors appointed by the shareholders of the company for 5 years;
  • The calculation of appointment of the Board of Directors members starting from the date of registration of the company in the commercial registry or from the date of issuance of the decision of the General Assembly to choose the Board of Directors members.

In addition to other obligations the companies must put into consider duration the period of appointment of the Board of Directors of the company to maintain the company's compliance with the laws and regulations.

Circular No. (18) Dated 26th December 2018 issued by the Chief Executive Officer of General Authority for Investment and Free Zones is related to the regulations of sending the invitation letters to the shareholders of joint stock companies. And this decision was issued specifically for the type companies which have a large number of shareholders who have difficulty accessing their addresses or sending invitations to them, these companies shall publish the invitations for General Assembly in two official gazettes. As for the other companies, they shall follow the ordinary regulations.

The Ministry of Justice of the financial department Decision No. 988 Dated 6 November 2018 related to the regulations of incorporation of companies under the law No. 72 of the year 2017 exempted incorporating companies under the abovementioned law of the notarization fees on the contract of incorporation contract. However, these companies amending their Articles of Associations will pay 0.5% from the capital of the company without maximum limit.

In addition to the above regulations the Authority issued new Decision that obliges companies to submit the Ordinary General Assembly, Extraordinary General Assembly and Board of Directors' meeting to the General Authority for Investment and free Zone within one month after convening date and this is according to the last reminder from the Authority dated 2th January 2019.

The General Authority for Investment and Free Zone also discussed the way to improve the services by activating electronic signature technology for the certification of minutes for Ordinary General Assembly, Extraordinary General Assembly and Board of Directors' meetings. However, the Authority did not specify the legal framework that will be followed in view of the changes that are occurring in an atmosphere of improved performance and services.

Meanwhile, effectiveness and efficiency of novel regulations and procedures are yet to be tested in practice.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on

Click to Login as an existing user or Register so you can print this article.

Some comments from our readers…
“The articles are extremely timely and highly applicable”
“I often find critical information not available elsewhere”
“As in-house counsel, Mondaq’s service is of great value”

Related Topics
Related Articles
Up-coming Events Search
Font Size:
Mondaq on Twitter
Mondaq Free Registration
Gain access to Mondaq global archive of over 375,000 articles covering 200 countries with a personalised News Alert and automatic login on this device.
Mondaq News Alert (some suggested topics and region)
Select Topics
Registration (please scroll down to set your data preferences)

Mondaq Ltd requires you to register and provide information that personally identifies you, including your content preferences, for three primary purposes (full details of Mondaq’s use of your personal data can be found in our Privacy and Cookies Notice):

  • To allow you to personalize the Mondaq websites you are visiting to show content ("Content") relevant to your interests.
  • To enable features such as password reminder, news alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our content providers ("Contributors") who contribute Content for free for your use.

Mondaq hopes that our registered users will support us in maintaining our free to view business model by consenting to our use of your personal data as described below.

Mondaq has a "free to view" business model. Our services are paid for by Contributors in exchange for Mondaq providing them with access to information about who accesses their content. Once personal data is transferred to our Contributors they become a data controller of this personal data. They use it to measure the response that their articles are receiving, as a form of market research. They may also use it to provide Mondaq users with information about their products and services.

Details of each Contributor to which your personal data will be transferred is clearly stated within the Content that you access. For full details of how this Contributor will use your personal data, you should review the Contributor’s own Privacy Notice.

Please indicate your preference below:

Yes, I am happy to support Mondaq in maintaining its free to view business model by agreeing to allow Mondaq to share my personal data with Contributors whose Content I access
No, I do not want Mondaq to share my personal data with Contributors

Also please let us know whether you are happy to receive communications promoting products and services offered by Mondaq:

Yes, I am happy to received promotional communications from Mondaq
No, please do not send me promotional communications from Mondaq
Terms & Conditions (the Website) is owned and managed by Mondaq Ltd (Mondaq). Mondaq grants you a non-exclusive, revocable licence to access the Website and associated services, such as the Mondaq News Alerts (Services), subject to and in consideration of your compliance with the following terms and conditions of use (Terms). Your use of the Website and/or Services constitutes your agreement to the Terms. Mondaq may terminate your use of the Website and Services if you are in breach of these Terms or if Mondaq decides to terminate the licence granted hereunder for any reason whatsoever.

Use of

To Use you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located.

You may use the Website as an unregistered user, however, you are required to register as a user if you wish to read the full text of the Content or to receive the Services.

You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these Terms or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.


The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use of the Content or performance of Mondaq’s Services.


Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

By clicking Register you state you have read and agree to our Terms and Conditions