The Prime Minister recently issued Decree no. 2731 for 2019 (the “Decree”) amending the Executive Regulations of the Investment Law no. 72 for 2017 (the “Investment Law”) by adding Articles (126 bis) and (126 bis A)1. The Decree is effective on November 7th, 2019.
According to the Decree, all companies incorporated or to be incorporated in Egypt -regardless the legal regime applied thereto- shall provide the General Authority for Investment and Free Zones (GAFI) with certain information and data in order to calculate the direct and indirect foreign investment capital.
In this respect, any company is under the obligation to submit:
- reports within a maximum of 30 days from i) the incorporation date and ii) any change of its capital, purpose, shareholding structure or board members;
- Quarter reports within a maximum of 45 days from the end of the relevant quarter;
- Annual reports within 4 months from the end of the financial year.
The requested information and data shall be provided online2 (or by any other manners) on specific templates as determined by the Ministerial Decree no. 2732 for 2019.
In case of breach of or non-compliance with the submission obligation, the legislator provides a fine of a maximum of L.E.50.000 to be imposed on the person in charge of the effective management of the legal entity if it is proven that he is aware of such breach or non-compliance.