GAFI Issues Templates for Investmen

Last month, the General Authority for Investment and Free Zones (“GAFI”) published two decisions on its website that concern business entities being established in Egypt: Chairman Decision No. 578 of 2019 regarding the issuance of Certificates of Incorporation to companies established under the Companies Law No. 159 of 1981 (the “Companies Law”)[1] and Chairman Decision No. 597 of 2019 regarding the issuance of certificates for investment projects (“investment project certificates”).[2] According to the provisions related to business incorporation in the Investment Law No. 72 of 2017 (the “Investment Law”) and its Executive Regulations, all companies must be registered in the Commercial Registry (by virtue of which they then gain legal personality) and they must each have a certificate of incorporation issued by GAFI, which is considered an official document in transactions before relevant authorities, banks, and other related entities. Additionally, GAFI issues another kind of certificate that is specifically related to investment projects or any amendments to them. The Investment Law states that all of these certificates are to be further organized and regulated by GAFI. Last month’s decisions contain the details to be included in each kind of certificate. The first decision No. 578 of 2019 covers certificates of incorporation. As per the decision, a certificate of incorporation is to be issued to companies established under either the Companies Law or the Investment Law. It is to include the company’s name; legal form; purpose; headquarters; the location at which its activities are undertaken; and the licensed, issued, and paid capital; among other things. Decision No. 578 of 2019 goes into effect a day after its publication in the Investment Gazette and GAFI’s website. The second decision No. 597 of 2019 pertains to the issuance of investment project certificates for companies established under the purview of the Investment Law. The decision specifies that investment project certificates, which are valid for a renewable two-year period, are issued based on the request of investors and after the approval of GAFI’s business commencement committees. The decision also tasks the Central Administration for Licensing at GAFI’s Investment Services Department with managing the preparation of these certificates, which are then issued by a decision from GAFI’s Chairman. Among the notable details to be included in investment project certificates are the project’s licensed, issued, and paid capital; its investment costs; its date of establishment; its business commencement date; and the incentives and benefits it enjoys. Decision No. 597 of 2019 will go into effect a day after GAFI’s board of directors decides on the fees for issuing these certificates. Finally, it is worth noting that in addition to certificates of incorporation and investment project certificates, the Investment Law also contains a stipulation for a certificate that is specific for enjoying investment incentives.   [1] GAFI Chairman Decision No. 578/2019 the issuance of Certificates of Incorporation to companies established under the Companies Law No. 159/1981, available through this link (in Arabic). [2] GAFI Chairman Decision No. 597/2019 on the issuance of certificates for investment projects.