Expanding into the Egyptian market nowadays holds immense potential for foreign investors. The newly enacted investment law reflects this commitment, aiming squarely at drawing more foreign investment to bolster the national economy. Register a Foreign Company’s Branch in Egypt is one of the best achievable opportunities for foreign companies that are looking to expand their businesses into the Middle East and Africa, as it may increase their chances of success in Egypt.
Demystifying the Branch Office in Egypt
Distinct from the main office, a branch office serves as an alternate site for business operations. These branches often handle specific company facets or focus on designated projects. Typically, each branch has its helm in the form of a branch manager, who liaises with and reports to the main office’s leadership.
In Egypt, a foreign company’s branch primarily finds its role in construction or other contractual domains, contingent on the company’s core functions. The decision to work with the Egyptian Government, the Public Sector, or a Private Company rest on the main company’s objectives.
Although such branches can partake in diverse activities spanning commercial, financial, industrial, and contractual arenas, it’s pivotal to align the branch’s operations with its Egypt-specific contract. This implies that, barring corporate governance, one should consider the branch akin to an indigenous Egyptian enterprise.
In compliance with Egyptian regulations, foreign companies wishing to engage in contractual work in Egypt must establish a registered branch. This branch is permitted to conduct various activities within the scope of the contract made in Egypt, such as commercial, financial, industrial, and contractual endeavors. While the branch operates as an Egyptian company, with the exception of corporate governance, it can be effectively managed by a foreign manager who remains under the control of the parent company. To ensure adherence to applicable laws and regulations, the activities of the branch are subject to review by the General Authority for Investment and Free Zones (GAFI).
Documents required to register a Foreign Company’s Branch in Egypt
For approval on registration of branches of foreign companies in the commercial registry in accordance with the provisions of the Commercial register Law 34 of the year 1976 and the Corporation Law 159 of the 1981, there are some important documents should provide include:
- An application to the head of the One Stop Shop sector along with a copy of the power of attorney from the mother company + the original one for checking.
- The statute of the mother company abroad or a formal copy of the foreign company’s commercial registry + a Photocopy.
- The decision issued by the mother company abroad to appoint a Branch Manager in Egypt + a Photocopy.
- The decision issued by the mother company abroad that no other branch has previously been opened in Egypt + a Photocopy.
- The mother company’s declaration of having no branch in Egypt + a Photocopy.
- Original bank certificate plus three copies proving the transfer of an amount in foreign currency equivalent to 5000 EGP exchanged at the official rate to the benefit of the branch + A Photocopy.
- 2 copies of the possession or dated lease contract of the site authenticated from the notary office.
- An application of security clearance of the foreign company and the branch manager in Egypt plus the manager’s passport.
- 2 copies of the contracts or agreement concluded for the execution of any operation in Egypt. The contract should state a set objective, duration and value.
All the above-mentioned contracts and documents should be translated and authenticated “both original and translation” by Egyptian embassies abroad and the Egyptian Ministry of Foreign Affairs.
Construction contracts should be accompanied with a certificate of previous experience in the same type of activity as the one sought for. This should be in a foreign language with a translation attached.
Some activities require further approval from the concerned official entities before the approval of GAFI on opening the company branch.
If you’re pondering over establishing and register a Foreign Company’s Branch in Egypt, “Consortio Law Firm” in Egypt stands ready to assist.
Our seasoned corporate lawyers ensure a seamless process, right from initial paperwork to bank setups, from talent acquisition to contract creation.
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