GAFI Amends the Regulations for Rep

On 31 January 2019, the General Authority for Investment and Free Zones (“GAFI”) published decision No. 60 of 2019[1] on its website, amending the regulations for representative offices of foreign companies in Egypt. The regulations were published last November by virtue of GAFI Decision No. 742 of 2018,[2] and it had required all representative offices to submit proof of the parent company’s decision to establish a company or open a branch in Egypt within three years from the registration date of said office in Egypt. The new Decision excludes representative offices of foreign banks from this requirement. It is worth noting that according to the Banking Law No. 88 of 2003,[3] representative offices of foreign banks in Egypt must be registered in accordance with the provisions of the Companies Law at the Central Bank of Egypt (“CBE”) and they are subject to CBE’s supervision. In addition, CBE could authorize these offices under certain conditions, such as the absence of branches for these banks in Egypt and that the parent bank is subject to the relevant regulatory authority of the country in which it is located. The representative offices are also limited in terms of their activity to conducting market research and investment opportunities studies, without any banking or commercial undertakings, including the work of commercial agents and brokerage.   [1] GAFI Decision No. 60/2019 with regulations on the operations of representative offices of foreign companies in Egypt. [2] GAFI Decision No. 742/2018 with regulations on the operations of representative offices of foreign companies in Egypt. [3] Law No. 88/2003 on the Central Bank and the Banking Sector, Official Gazette, Issue No. 24 (bis), 15 June 2003.