The registration in the Egyptian Federation for Construction and Building Contractor

What is the Egyptian Federation of Construction and Building Contractors?

The Egyptian Federation for Construction and Building Contractors (EFCBC) has been established by virtue of the provisions of Law No. 104 for 1992 and its executive regulations, as amended, the said federation shall comprise contractors for construction, public works, land reclamation, installations, dredging, marine construction works, and any other works of the nature of these works.

The establishment of the federation is aimed at safeguarding its members’ interests, representing them before all the competent authorities and setting out all the regulations and measures pertaining to practicing the contracting and construction professions.

Conditions and Procedures for Registration in the EFCBC

Legally speaking, it is impermissible to assign and/or undertake any work within the limits of the construction activity exceeding EGP 50,000 per transaction for the non-registered members of the said federation, however, the said provision shall not be applied to construction works that provide the public interest, provided that such works shall be undertaken in the manner set forth in all the relevant laws and after the Council of Ministries’ approval.

In the course of the federation’s registration, the EFCBC sets out a set of prerequisite conditions and requirements that shall be fulfilled by the applicant entity, additionally, the federation’s registration is allowed either for local entities or foreign entities.

It is worth mentioning that the process of registration primarily depends upon the prescribed categories set forth in the law, executive regulations and the federation’s guideline in question, as well as each category is classified into a number of ranks and each rank has its specified qualifications and requirements, given that each rank under the envisaged category requires determined conditions, including, inter alia, the paid-up capital, the number of experience years, a determined number of engineers and accountants and the possessed machinery and equipment.

In the terms of the registration of foreign entities, the latter shall be registered as foreign correspondents, whereby, the registration process in this respect requires specific requirements and conditions.

It is well established that the registration of the foreign correspondent in the federation shall be taken place based on its registered category and rank in its state along with its series of other documentation that shall be fulfilled to the utmost extent possible, as well as such a foreign correspondent is obliged to contract with an Egyptian subcontractor to implement a percentage of the intended project not less than 51%.

What are the major divisions of the construction industry?

Undoubtedly, the federation classifies construction works into six categories and each category comprises a number of works, however, the major categories of the construction industry in recent years, including among other categories, building works, electromechanical and electronic works and the operation and maintenance works.

Documentation required for obtaining EFCBC membership

For the sake of the registration in the federation, the following documentation shall be duly fulfilled by the applicant entity and the said documents come as follows:

1. A recent extract of the commercial register.
2. The origin of the tax card.
3. The corporate documents, including, inter alia, the investment gazette.
4. A document issued by the concerned social insurance office evidencing the company’s registration in the social insurance scheme.
5. A document issued by the concerned social insurance office evidencing that the applicant entity insured the required number of legal and accounting personnel.

For the purpose of the foreign correspondent’s registration, the following documents are deemed as the major required documents as follows:

1. A legalized and notarized commercial register.
2. A legalized and notarized article of incorporation.
3. An adopted statement issued by the applicant entity indicating the possessed machinery and equipment.
4. An adopted statement issued by the applicant entity indicating its years of experience in the category in question.
5. The project’s contract.
6. The concluded contract with an Egyptian subcontractor evidencing that the aid subcontractor shall perform a percentage of the envisaged project at the rate of 51%.

What are the categories of contracting companies?

With the large number of contracting companies in Egypt, it is necessary to know the division of the categories of contracting companies:

• First category

From 80 million Egyptian pounds as a capital for the company as a maximum and up to 60 million Egyptian pounds as a capital for the company as a minimum.

• Second Category

From 60 million Egyptian pounds as a capital for the company as a maximum and up to 50 million Egyptian pounds as a capital for the company as a minimum.

• Third category

From 40 million Egyptian pounds as a capital for the company as a maximum and up to 30 million Egyptian pounds as a capital for the company as a minimum.

• Fourth category

From 25 million Egyptian pounds as a capital for the company as a maximum and up to 20 million Egyptian pounds as a capital for the company as a minimum.

• Fifth category

From 12 million Egyptian pounds as a capital for the company as a maximum and up to 10 million Egyptian pounds as a capital for the company as a minimum.

• Sixth category

From 6 million Egyptian pounds as a capital for the company as a maximum and up to 4 million Egyptian pounds as a capital for the company as a minimum.

• Seventh category

From 3 million Egyptian pounds as a capital for the company as a maximum and up to 2 million Egyptian pounds as a capital for the company as a minimum.

Bases of classification and arrangement in the EFCBC

The EFCBC sets a set of laws on the basis of which classifications of classifications are classified according to classification.

1. The paid-in capital is 50 point.
2. And the duration of the contractor’s experience is 250 points.
3. The working technical staff has a score of 200 points.
4. The financial system is 50 points.
5. The first batch of service 100 points.
6. Another 100 points from the volume of contracts completed during the previous year.
7. 100 points of Finance Budget by Budget, Budget and Budget.
8. 100 points contractors owned style.

Term of membership of the EFCBC

It should be noted that the membership license is issued for one renewable year and the Egyptian Federation for Construction and Building Contractors has the exclusive jurisdiction to accept, renew and/or write off the contractor’s membership.