Egypt: How To Register Branches Of Foreign Companies With The Egyptian Federation For Construction & Building Contractors (EFCBC)?

Egyptian Federation for Construction & Building Contractors (EFCBC):

The Egyptian Federation for Construction & Building Contractors (EFCBC) aims at regulating the construction field in Egypt, taking care of the interests of its members, representing them before the competent authorities, achieving the general objectives of the State, and implementing public projects. It should be noted that in all construction agreements made within Egypt, to which one of its parties is a contractor, regardless of its legal form, such a contractor shall be a member of the EFCBC, which is the official spokesperson for the rights of contractors in their transactions with all governmental and non-governmental agencies. Also, the EFCBC regulates the rules that shall be followed under the principles and customs of the construction field, whether among the contractors themselves or between contractors and third parties. In this regard, we will only clarify such organizing rules.

1. Documentation Required for Registration of Branches of Foreign Companies with the EFCBC

1. Application for registration in the EFCBC, together with all completed forms and supporting documents.

2. The offshore company commercial register, ratified by the Egyptian Embassy and translated into Arabic.

3. The offshore company's classification and category, ratified by the Egyptian Embassy and translated into Arabic.

4. The company's recent financial statements, along with the report of the board of directors and the auditor, to be certified by the chartered accountant and ratified by the Egyptian Embassy.

5. A statement approved by the company, stating the number of engineers, accountants, administrators, jurists, technical staff, and craftsmen, ratified by the Egyptian Embassy.

6. A statement approved by the company, stating the company's equipment, approved by the chartered accountant, financially audited, and ratified by the Egyptian Embassy.

7. The company's profile, to be supported by the references made during the past five years, along with the ongoing work during the last year. The statement shall include each field separately, supported by contracts and certificates of completion of work, ratified by the Egyptian Embassy.

8. The works that will be awarded to the company, or the subcontract made between the contractor and any third party, whether governmental or non-governmental.

• If the contract is made with a government agency, the agreement shall be stamped with the seal of Egypt.
• If the agreement is executed with a non-governmental agency, a copy of the commercial register of the other company shall be submitted.

2. After submitting the required documents to the EFCBC, the company shall be registered with the Bureau's committee within the specified deadlines. Then, the EFCBC will send us a letter to the attention of GAFI's commercial register, including an application for registration of the foreign company's branch with the commercial register.

3. Presentation of the conclusions and findings of the main committee for the registration, classification, and order of the members of the EFCBC, to the Bureau, in the first following to express its final opinion in this regard.

4. After the Bureau initially approves to accept the contractor, the contractor will be required to submit an invitation letter to submit his bid in the tender it wishes to enter to, or to provide the EFCBC with a letter from the awarding authority, stating that it does not object to submitting its bid in the said tender.

5. The contractor shall deposit an amount of 11,000 EGP (eleven thousand) to the EFCBC treasury, of which 1000 EGP (one thousand) for the registration fee with the EFCBC, and 10,000 EGP (Ten thousand) for the annual subscription from the submission date of the required documents until December 31 of the same year.

6. The contractor shall be notified, by a letter from the EFCBC, that the contractor is allowed to submit the bid invitation letter, or that the EFCBC has no objection to submitting the bid. The EFCBC letter shall include an explicit text confirming that the value of the proposed transaction shall not be less than forty million EGP (40m EGP). Also, an Egyptian active member shall share at least 51% of the value of the relevant bid, except for Russia, and the execution of works shall be 1% for Egyptian contractors).

Documentation required for obtaining the EFCBC membership card for foreign companies:

1. Application for a membership card, including a power of attorney.

2. Project contract.

3. A letter from the project owner, stating the commencement and completion date of the project.

4. A recent true copy of the commercial register with not more than 3 months from the issuance date.

5. Execution of works by 51% for Egyptian contractors (except for the Russian Federation, and the execution of works shall be 1% for Egyptian contractors).

Documentation required to renew the EFCBC's membership card:

1. Application for card renewal, including a power of attorney.

2. Project contract.

3. A letter from the project owner, evidencing the continuity of work/ratio of completion of the project / the commencement and completion date of the project.

4. A recent true copy of the commercial register with not more than 3 months from the issuance date.

5. The recent commercial register and a copy of the social insurance.

6. Execution of works by 51% for Egyptian contractors (except for the Russian Federation, and the execution of works shall be 1% for an Egyptian contractor).

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.