Lifts the Egyptian ownership requirement for trading companies
29 Oct 2023
On 29 October 2023, Egypt introduced significant amendments to its Importers Registry Law through Law No. 173 of 2023, adjusting the ownership and operational criteria for entities involved in import activities for direct trading on the domestic market in Egypt. These changes include the removal of the previous 51 per cent minimum Egyptian ownership requirement for companies in the import sector, allowing wholly foreign-owned entities to engage in import operations under specific conditions.
The updated law sets forth several criteria for all companies to qualify for an importation license. These include maintaining a minimum share capital of EGP 2,000,000 (approximately $64,000), achieving a minimum annual business turnover of EGP 5,000,000 (around $160,000) in the year preceding the license application, and the payment of an EGP 200,000 (approximately $6,400) insurance amount, which is refundable upon the license's expiry or termination.
The term of license for these entities is up to 10 years, renewable for another 10 years by virtue of a cabinet decision. Existing companies partially owned by foreign shareholders (up to 49 percent) are given a license with a validity of five years, which can be renewed for unlimited terms.
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Type:
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Entry and establishment (Ownership and control)
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Treatment and operation (Operational conditions)
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Industry:
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Services (Wholesale and retail trade)
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Sources:
