New Decree Regulating Representative Offices In Egypt

According to Egypt's Company Law, the purpose of the foreign representative office is to study the markets and the possibilities of production, without any commercial activities including the activity of the commercial agents, and it shall be closed after completion of the study process. The beneficiaries in this case are the foreign companies.

Recently, a new Decree No. 742 of the year 2018 was issued regulating foreign representative offices in Egypt which stipulated that such offices operated in Egypt by foreign companies shall be granted a certificate of registration for a period not exceeding one year. The annual renewal of the certificate shall be examined in the light of Article One of the said Decree. Such article requires that the foreign representative offices operated in Egypt submit to GAFI the employees' names list, their position, nationalities, wages, the percentage of the Egyptians employees' wages and other requirements related to the mother company.