GAFI’s Decision on the Electronic S

The General Authority for Investment and Free Zones (“GAFI”) has recently issued its decision No. 624 of 2019 mandating that companies subject to the Investment Law and the Companies Law submit their financial statements electronically starting the beginning of October 2019 (the “Decision”).[1] According to the Decision, this comes in light of the provisions of the Investment Law which aim at facilitating services for investors through the use of electronic means where applicable. In addition, GAFI asserts in its Decision that the move is meant to eliminate financial foul play. The Decision sets out the steps to be taken by GAFI for the implementation of the electronic submission of financial statements. This includes GAFI’s preparation of special manuals on the procedures for submission as well as identifying the data to be provided in the company’s annual data submission form. The program is to allow, not only the submission of financial statements and any related data electronically, but also the editing of said data using the unified company/establishment number on GAFI’s website, in addition to securing said electronic process. The General Assembly Department at GAFI must ensure the submission of the financial statements prior to the accreditation of the ordinary general assembly meeting approving the company’s annual financial statements. Companies are required to submit their auditor approved financial statements on GAFI’s electronic database within three months at most from the end of the company’s fiscal year. In the event that a company fails to comply with said obligation, a fee of EGP 500 EGP will be imposed for each financial year, which the company must pay prior to accreditation by the General Assembly Department. The Decision states that the fee could be subject to change where necessary. Finally, GAFI’s Decision reiterates that the company will be held fully responsible for the accuracy of data submitted electronically before GAFI, or other interested parties.   [1] GAFI Decision No. 624/2019 mandating that investment companies submit their auditor approved financial statements on GAFI’s electronic database within three months from the end of the company’s fiscal year, available through this link (in Arabic).