Egypt’s Prime Minister Mostafa Madbouly has issued decree No. 2731 of 2019 regarding amendments to the bylaws of Egypt’s investment law. The amendments include new provisions to the executive regulation; two articles that require local and private entities to submit data and information to tally Egypt’s foreign direct investment (FDI) flows as well as indirect investment. According to the decree, local entities include ministries, public bodies and governorates, in addition to public legal persons which grant licenses for companies to be established, such as the Egypt’s Central Bank, the Egyptian Exchange, the Financial Regulatory Authority (FRA), the Industrial Development Authority (IDA), and special economic zones. Private entities include all companies established in Egypt, whatever legal regime they are working under, in addition to venture projects that are subject to Egypt’s investment law and have foreign shares.
The decree obliges companies that have any foreign shareholders to submit their quarterly financial statements certified by the company’s auditor along with a questionnaire provided by the General Authority for Investment and Free Zones (GAFI). The 1st interim report to be submitted will be for period ending Q3 (30/09/2019) and should be submitted before the 31st of December 2019 or else the company will be fined EGP 50,000.
Companies established under Egyptian law, with foreign capital, should see immediate professional assistance to ensure timely compliance.
Beshir Noureldin,
Managing Director
beshir.noureldin@eurofast.eu