Amendment to Importation Law
On March 7, 2016, the Arab Republic of Egypt witnessed major amendments to Law No. 121 of 1982 through the implementation of Law No. 7 of 2017.
According to key amendments of article 2 of the amendments, the registration of natural persons requires:
- Individuals to be Egyptian nationals
- Having been engaged in business for at least two consecutive years prior to applying for registration; this can be proved with a certificate from the competent Chamber of Commerce approved by the General Union of Chambers of Commerce. The minimum volume of business in the last year, as indicated in the tax return submitted to the Tax Authority, shall not be less than EGP 2,000,000. Holders of an importation license, at the time of issuance of this law, shall be exempted from such requirement.
- When applying for registration, the amount of capital indicated in the commercial register shall not be less than EGP 500,000
- Holders of importation licenses, at the time of issuance of this law, shall reconcile their conditions within six months in accordance with provisions of this law and the implementing regulations to be issued within six months of the effective date of the law.
According to the key amendments of article 2, registration of companies requires:
- Company to be registered in the commercial registry. Partnerships and limited liability companies should have been registered in the commercial registry for at least one year. The minimum volume of business in the last year, as indicated in the tax return submitted to the Tax Authority, shall not be less than EGP 5,000,000. Companies which hold import licenses shall be exempted from such requirement at the effect date of the implementing regulations of this law
- The paid capital of the partnerships and limited liability companies shall not be less than EGP 2,000,000
- The issued capital of the joint stock companies and partnerships limited by shares shall not be less than EGP 5,000,000. 51% of the shares of the partners in the joint stock companies, partnerships limited by shares, limited liability companies and partnerships must be owned by Egyptians. Companies which hold importation licenses, at the time of issuance of this law, shall reconcile their conditions in accordance with the provisions of this law within six months of the effective date.
One of the many results of the latest amendments, and in order to promote foreign investment in regards to companies with importation objectives, foreign nationals now have the ability to enter into joint ventures with Egyptian companies for up to 49% equity and the newly established company will be entitled to import finished goods, as opposed to before the implementation of the new amendment.
Eldib & Co invites you to send all your queries, in regards to the amendments of the importation to firstname.lastname@example.org