Establishing and requirements of the civil associations

The Egyptian Law regulates the requirements of establishing civil associations in Egypt and their operation in accordance with the provisions of Law No.149 of 2019 regarding the issuance of The Law Regulating the Practice of Civil Work. The following are the conditions and requirements:

The Requirements for Establishing an Association through The Regional Union

1. There shall be a board of trustees consisting of an odd number of members (5-15).
2. It is permissible for foreigners with legal residence in Egypt to be among the members, provided that they shall not exceed 25% of the total number of members.
3. Associations are required to open a bank account in one of the banks supervised by the Central Bank of Egypt (CBE), noting that it is permissible for the association to hold multiple bank accounts for its activities within the same bank.

The Required Procedures for Establishing an Association through The Regional Union are many and among them

• A criminal record certificate for each founding member, and a declaration confirming they are not listed on any lists of terrorists.
• Designating a representative for the group of founders to carry out the required procedures.
• Designation of the association’s registered headquarters.
• Designation of the association’s name, which shall be distinct and derived from its purpose, noting that it shall not create any confusion with another association or institution operating in the same geographical or sectoral scope, or resemble the name of any national state institutions, authorities, or an international organization.
• Specification of the geographical and sectoral scope of the association and the fields it operates in.
• Specification of the purposes, the nature of activities and objectives of the association and their means of achieving them.
• Specification of the name, title, age, original and acquired nationality (if any), profession, residence, the National ID number (or passport number for foreigners) and contact details through traditional and certified effective electronic methods of communication (phone, email, digital applications, etc.) of each founding member.
• Specification of the financial resources of the association and how they will be utilized and managed.
• Maintaining the association’s premises must have an accessible entrance without barriers.
• Specification of the association’s website and email address, if available.

The Association’s Articles of Incorporation (AoI) and By-Laws shall include the following

1. The address of the registered headquarters, determined for the management of the association.
2. The association’s name, which shall be distinct and derived from its purpose, and shall not create any confusion with another association or institution operating in the same geographical or sectoral scope, or resemble the name of any national state institutions, authorities, or an international organization.
3. The geographical and sectoral scope of the association and the fields it operates in.
4. The purposes, the nature of activities and objectives of the association and their means of achieving them.
5. The name, title, age, original and acquired nationality (if any), profession, residence, the National ID number (or passport number for foreigners) and contact details through traditional and certified effective electronic methods of communication (phone, email, digital applications, etc.) of each founding member.
6. The financial resources of the association and how they will be utilized and managed.
7. The representing bodies of the association, their competencies, and the process for selecting, dismissing or terminating its members. As well as the quorum requirements for meetings and decision-making of these bodies and the means of calling the meetings to order through which its members attain knowledge.
8. The membership system and its conditions and the rights and obligations of members; including the right to access the assembly’s documents, attend the General Assembly and vote when the required conditions are met.
9. The financial and accounting regulations and the financial supervision system.
10. The rules of convening General Assemblies, including the procedures for calling and holding meetings and where they are held, the powers of members and their voting rights of in terms of, issuing decisions, electing board members and their powers and the appointment of an auditor along with determining their fees.
11. The rules and procedures for amending the Articles of Incorporation (AoI) and By-Laws, establishing branches, cases of dissolution without judicial verdicts and their conditions, and asset allocation upon the dissolution of the association (either to the Fund for Supporting Civil Associations and Institutions or another civil association operating in the same field).
12. Designating the authorized representative to apply for public benefit status.
13. Rules and conditions for volunteering to work within the association’s activities (if available), designating the volunteers rights and obligations.
14. Noting, that the executive regulations of this law shall include a model standard Articles of Incorporation for guidance.

Prohibited Activities for Associations

The Law prohibits associations from engaging in the following actions:

• Conducting activities that deviate from the association’s declared purpose.
• Involvement in political, trade union or partisan activities regulated by other laws, or using the association’s premises for these activities.
• Establishing secret societies, militias, or formations of a secret, military, or paramilitary nature, or supporting, promoting, or financing violence or terrorist organizations.
• Conducting activities that may disturb public order, morals, national unity, or national security.
• Promoting discrimination based on gender, origin, color, language, religion, or belief, or engaging in racist activities or incitement to hatred.
• Funding, supporting, or promoting political parties, electoral campaigns, as well as referenda, or nominating candidates in elections on behalf of the association.
• Granting academic or professional certificates without approval from the competent authorities or without official partnership with recognized universities or regulatory bodies, in accordance with the rules set by the Supreme Council of Universities.
• Conducting activities that require government licensing without first obtaining the necessary official approvals.

Exemptions for Associations Established through the Regional Union

1. Exemption from registration and notarization fees in all types of contracts in which the association is a party, including contracts related to ownership, mortgages, or other property rights. This also includes exemption from signature authentication fees.
2. Exemption from stamp duties and taxes imposed now and in the future on all contracts, powers of attorney, documents, printed materials, records, and other official papers related to the association.
3. Exemption from property taxes on buildings owned by the association, provided they are used exclusively for their purposes and objectives, noting the association may not change its purpose without the approval of the competent minister.
4. Consideration of donations to associations as deductible expenses for tax purposes, but only up to 10% of the donor’s net income.
5. Exemption from custom duties and other fees imposed on imported equipment, machinery, devices, production supplies and vehicles, as well as donations and grants received from abroad. This exemption is granted by Prime Ministerial decree, upon the proposal of the competent minister and the presentation of the Minister of
6. Finance, provided these items are essential for the association’s activities. Noting, that it is prohibited to dispose of durable goods (specified by a decree of the competent minister in coordination with the Minister of Finance) within five years unless the due customs duties and taxes are paid.