Difference Between Branch And Subsidiary

Investment climate in Egypt is abundant with investment opportunities that support investors. In addition, many legal forms allow investors to launch the investment process expeditiously and smoothly. In this article, we will clarify the most significant differences and aspects of variance between the branches of foreign companies incorporated within the Arab Republic of Egypt and subsidiary companies.

Branches of Foreign Companies:

Pursuant to Chapter 6 of the Companies Law No.159 of 1981 and its Executive Regulations, as amended by Law No.4 of 2018, which sets forth the basic rules and legal framework for the incorporation of branches of foreign companies in the Arab Republic of Egypt, the main activity of the branches of foreign companies is restricted to the execution of the concluded contracting agreements on behalf of the parent company. Hence, branches of foreign companies inside Egypt must not carry out any other activities such as import and export