Phases of Foundation (According to GAFI)

A. In the pre-establishment phase, the investor chooses the sector/activity in which he desires to invest, based on which the process to be followed and approvals to be obtained are determined. GAFI oversees 69 activities, and the investor deals with 71 entities under 22 ministries. The minimum is 8 entities for the investor to deal with, and a maximum of 25 entities, varying according to the activity.

B. Phase of Establishment:

Required procedures to incorporate a company

The required steps:

• An application to establish the company should be submitted on the special form prepared for such purpose.
• Selecting the type of the company [ a joint stock company , a limited partnership ]
• Obtaining a certificate from the Commercial Register proving that the name of the company is unique and shall not cause confusion.
• Issuing the power of attorney to take the necessary procedures to incorporate the company.
• Preparing a landscape map showing the site of your project in case the project is located in one of the governorates of North or South Sinai.
• Obtaining a certificate from CMA If the capital of the company contains a corporeal share.
• Issuing a bank certificate proving that 10% of the issued capital has been deposited [in the case of joint stock companies] or that the amount of capital is paid in full [in the case of a limited liability company].

 Required procedures to register a foreign company's branch

• An application to the head of the investment commercial registration
• A photocopy of the constitutive structure of the head office.
• A copy of the head company resolution to assign a manager for the branch in Egypt.
• A copy of the head company declaration of having no previous branch in Egypt.
• A bank certificate proving transferring an amount of hard currency equal to LE 5000 under the branch name.
• A copy of the possession or lease contract for the place , or the contracting contract approval.
• The approvals of the concerned ministry according to the company's activity and the ministry of supply.
• An Arabic version of said documents, should be endorsed by Egyptian Embassy.

C.Phase of preparation towards operation:

• Purchasing the land.
• Obtaining the license for building from the municipalities.
• Purchasing/Importing the equipment.
• Obtaining the license to operate (doc. 453 municipalities): from 1 to 6 months.
• Obtaining the approval from the technical bodies supervising this activity (there are different procedures depending on the activity).

D.Phase of operation:

• Operations kick-off date: 4 weeks.
• Consulting the legal advisor: If YES then go ahead, if NO then go to the Expansions Committee for further steps ending with approval/disapproval.
• Report to be approved by the Chairman of GAFI.
• Notifying the Tax Authority