The investment residency in Egypt

In the dynamic and interconnected world of global finance, Egypt shows its role in, attracting foreign investors through requirements through by stating modern and simplified requirements which facilitate the investment within Egypt, which were established by the CEO of the General Authority for Investment and Free Zones, which aim to attract the foreign investments; through granting foreign investors many advantages, including residency ,which helps in forming and increasing investment opportunities on a broader scale and enhancing Egypt’s position as a profitable destination for international capital.

These strategic advancements to keep up with Egypt’s broader economic vision and reflect the country’s dedication to provide a suitable environment for promising investment opportunities.

The conditions for obtaining the investment residency according to Investment Law No .72 of 2017

Article No. (4) of the Executive Regulation of the Investment Law No. 72 of 2017 issued by the Prime Minister’s Decree No. 2310 of 2017 determines the conditions of granting the investors residency as follows:

1. To be a founder, shareholder or a partner in a company or owner of an establishment.
2. The period of residency shall not be less than one year and not more than the duration of the project.

Article No. (5) of the Executive Regulation of the Investment Law No. 72 of 2017 determines the residency period shall be one year at the beginning of the incorporation, and shall be renewed for another period in cases there is seriousness in starting the execution of the project. Then, it shall be renewed for periods of five (5) years each and in all case the residency may not be longer than the period of the project.

The Criteria for Obtaining the Investment Residency According to the Investment Law

To obtain the approval of GAFI to grant residency, the project shall meet several requirements and criteria as follows:

1- Company’s activity

The company carries out activities as detailed in the Investment Law and is targeted for development, and these purposes are:

• New and renewable energy.
• Heavy industry activities.
• Technological industry.
• Reclamation and cultivation of desert wasteland.
• Hospitals accommodation activities.
• Tourism activities.
• Infrastructure activities.
• Petroleum sector.
• Free zone projects whose export rate exceeds 80%.

2- Company’s capital

The minimum for each legal form:

• Joint stock company: if its capital is 250,000 EGP (Two Hundred and Fifty thousand Egyptian Pounds) up to one million EGP or its equivalent I foreign currency.
• Limited liability Company: 50,000 EGP (Fifty Thousand Egyptian pound) up to 1,000,000 EGP (One Million Egyptian Pounds) or its equivalent in foreign currency.
• Companies of persons: only 300,000EGP (Three Hundred Thousand Egyptian Pounds) up to one million Egyptian pounds, or its equivalent in foreign currency.
• One Person Company: from 50,000 EGP (Fifty Thousand Egyptian Pounds) up to 1,000,000 EGP (One Million Egyptian Pounds.

3- Number of Employees

Article No. (6) of the Executive Regulations of specifies the legal percentage of labor appointed by the company is as follows:

An investment project shall have the right to recruit foreign workers within the limits of 10% of the total number of workers in the Project. This rate may be increased to 20% maximum of the total number of workers in the Projects, in the event it is not possible to hire national manpower that enjoys the required qualifications.

A committee shall be formed under a decision issued by the Authority’s Chief Executive Officer, comprised of technical and legal members and representatives of the competent authorities. The Committee shall settle the requests for increasing the rate stated for hiring the foreign workers, and its decisions shall be approved by the Authority’s Chief Executive Officer. The Committee shall observe the following rules when researching the submitted requests:

1. Study the scientific qualifications and experiences of the foreign worker, and whether they are in line with licensed professions.
2. Seek the opinion of the competent authority supervising the economic activity practiced by the company or establishment, as well as the opinion of the competent security authority as required for national security.
3. Observe the principle of reciprocity in the State of the foreign workers, if any.
4. The economic need and interest for the foreign experience.
5. The company or establishment needs of the specialists or consultants and the work circumstances therein, and the effect of approval or rejection to the production or investment.
6. The extent of providing employment opportunities to the Egyptian workers by the company or establishment.
7. The extent of the company or establishment seriousness to fulfill its previous undertakings and the extent of its observance of the provisions of law.
8. In case there is more than one foreign worker in the same specialty, the preference shall be given to the foreigner born and permanently resided in Egypt.
9. The obligation by the company or establishment permitted to use the foreign experts or technicians with assigning the Egyptian workers whose qualifications are in line with the qualifications of the foreign experts and technicians to work as assistants, provided that the foreigner shall be obligated to train them and prepare annual reports concerning their performance.

The foreign workers in the Investment Project shall have the right to remit their financial dues, in whole or in part, abroad in accordance with the rules as applicable with the Central Bank of Egypt.

The Beneficiaries of the Investment Residency

• Joint-Stock companies: the beneficiary shall be the Chairman of the Board of Directors – Members of the Board of Directors – Managing Directors.
• Limited liability Companies: the beneficiary shall be the manager/s of the company.
• One Person Company: the beneficiary shall be the owner of the company or the manager of the company.

The documents required to obtain investment residency in Egypt

1. A request on the company’s letterhead in the name of the head of the investment services sector to grant an investor’s residence permit according to the prepared form and stamped with the company’s seal and signed by the person who has the right to sign.

2. A copy of the investor’s passport.

3. A recent extract from the commercial register, less than 3 months and indicated by the term of the current board of directors and managers.

4. Projects that have been established for a year and that have not started the activity submit to an inspection committee.

• Projects that have started the activity must submit a copy of the certificate of the beginning of the activity.
• Projects that have been since the last inspection committee for five (5) years submit an executive position committee

5. A recent copy of the approved document indicating the foreigner’s ownership of Quotas/shares in the company or a representative of a legal person.

6. A copy of the possession document (in case of lease, a lease contract notarized by the real estate registry) and submit the original for review.

In the case of free zone companies:

1. A copy of the practice license issued for free zone projects and investment zones.
2. A power of attorney for the real estate registry from the Chairman of the Board of Directors or whoever has the right to sign on behalf of the company, including the termination of residency procedures or dealing with government agencies, or an authorization from the Chairman of the Board of Directors and the validity of a bank signature if any.
3. Payment receipt for the performance of the service.

Other Ways to Obtain Investment Residency in Egypt

The Minister of Interior Decree No. 977 of 2023 the decree granting foreigners temporary non-touristic residency in Egypt in the following cases:

Properties Ownership in Egypt

• For a period of five (5) years, renewable, for anyone who owns one or more properties in the Arab Republic of Egypt for an amount of not less than $200,000 (Two Hundred Thousand US dollars).
• For a period of three (3) years, renewable, for anyone who owns one or more properties in the Arab Republic of Egypt for an amount of not less than $100,000 (One Hundred Thousand US dollars).
• For a period of one (1) year, renewable for anyone who owns one or more properties in the Arab Republic of Egypt for an amount of not less than $50,000 (Fifty Thousand US dollars).

A Bank Deposit

• For a period of three (3) years based on a bank deposit of $100,000 (One Hundred thousand US dollars) or its equivalent in other foreign currencies.
• For a period of one (1) year, based on a bank deposit of $50,000 (Fifty thousand US dollars) or its equivalent in other foreign currencies.

The Cases of Revokation of Investment Residency in Egypt

Article (4) of the Executive Regulation of investment law also states the cases in which the residency of a foreign investor is revoked.

1. If the investor disassociates from the company.
2. If the company is liquidated.
3. If the company deregistered from the Commercial Register.

The Egyptian government is trying to facilitate investment process by ruling the new regulations that helps foreigners to invest in Egypt without any burdens. to keep up with Egypt’s broader economic vision of the country’s dedication to provide a suitable environment for investment opportunities.