How to obtain an investor residence in Egypt as per the Egyptian Investment Law?

The procedures for obtaining an investor residence in Egypt is different based on the law of incorporation and we discuss hereinafter How to obtain an investor residence in Egypt as per investment law.

Due to its unique geographical and strategic location, and the development of its economic performance, the Arab Republic of Egypt (A.R.E) is one of the most attractive countries for investment and investors, as the Egyptian Government follows a careful approach to attract investors to increase investment activity in the state. The Egyptian Government provides facilities for foreigners and investors to enjoy residency in Egypt, whatever the purpose. An investor wishing to invest in Egypt is granted a residence through the General Authority for Investment and Free Zones (GAFI). This residence is granted, for the first time, for one year, and for the second time, it may be renewed for three years and then renewed for five years. It may be granted to the investor and his/her first-degree relatives, after receiving the security clearance and completing all required documents with the General Authority for Investment and Free Zones (GAFI).

Requirements and Documents Required for obtaining Investment Residency:

1. The Egyptian legislator has stipulated in Executive Regulation No. 2310 of 2017 of Law 72 of 2017 that:

Subject to the provisions of the laws regulating residency in the A.R.E, for obtaining a residency for non-Egyptian investors, the following requirements shall be met:

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

• The Board of Directors of the GAFI may add other conditions after the approval of the Ministry of Interior;
• The residence shall be revoked if the investor has disassociated from the company, the company is deregistered based on liquidation, or deregistered from the Commercial Register.

To obtain a foreign investment residency inside the A.R.E, there shall be an existing investment project.

The Conditions and Required Documents Vary As per the Company’s Legal Form and the applicable law. Therefore, a distinction shall be made between companies subject to Law 159 of 1981 and companies subject to Law 72 of 2017, as follows:

Companies Subject to Law 72 of 2017:

- To obtain the recommendation;i.e. the approval of the GAFI to grant residency to the investor, the project shall meet several relative requirements and criteria, which are as follows:

• Requirements

Standard (1): the Company's Activity:

1. If the company’s activity falls outside the objectives targeted for development, i.e. activities outside the investment law, 10% shall be granted.

2. If the company carries out activities within the Investment for development purposes, it shall be granted 20%. These purposes include the following:

• New and renewable energy;
• Heavy industry activities as defined by the Industrial Development Authority; technological industries without assembly or programs, pharmaceutical industry, supporting industries;
• Undergraduate education activities;
• Integrated (tourist - industrial - agricultural - urban) development activities;
• Land reclamation and agriculture of desert wastelands with no less than 500 acres of undisputed possession;
• Hospital setting up;
• Tourist activities (establishing and operating hotels and tourist villages with a capacity of not less than 500 rooms, except for 50% for the border governorates, areas outside the Old Valley, and remote areas);
• Infrastructure projects; i.e. portable water and sanitation, electricity,  roads, communications, metro lines;
• Petroleum Sector;
• Water desalination projects (project setting up, operation and management); and
• Free zone projects with an export percentage that exceeds 80%.

• Standard (2): The Company's Capital:

Minimum for Each Legal Form:

A company is granted 10% in the following events:

• (Joint-Stock Companies): 250 thousand EGP up to one million EGP, or its equivalent in foreign currency;
• (Limited Liability Companies): 50 thousand EGP to one million EGP, or its equivalent in foreign currency.
• (Partnerships): 300 thousand EGP up to one million EGP, or its equivalent in foreign currency.
• (One-person Company - natural or legal person) 50 thousand EGP up to one million EGP.
• (Sole Proprietorship) 100,000 EGP, or its equivalent in foreign currency.
• The company is granted 15% if the capital is more than one million EGP to 5 million EGP or its equivalent in foreign currency.
• The company shall be granted 20% if the capital is more than 5 million EGP to 15 million EGP or its equivalent in foreign currency.
• The company shall be granted 30% if the capital is more than 15 million EGP or its equivalent in foreign currency.
• Below are some observations on the paid-up capital, a bank deposit certificate, or a certificate of economic performance:

1. The right to grant and renew residency for a sole proprietorship and a one-person company (natural person) shall be limited to its owner, provided that security is deposited under a bank certificate for one year of $200,000, with a bank that shall undertake to cash the deposit only under a letter from the GAFI and after ensuring the practicing of the activity by the company. The capital of the sole proprietorship shall not be less than LE 50000.
2. To grant and renew residency, it is required to submit a bank certificate in the name of the company or a certificate of economic performance, not exceeding the company's capital.
3. For joint-stock companies, the bank certificate may be replaced with such amounts as indicated in the company's Commercial Register, provided that such amounts may not exceed the company's capital.
4. For limited liability companies, the foreign investor shall be both a partner and a manager.

• Standard (3): Number of Employees:

• From 5 workers up to 19 Egyptian workers, 5% relative weight shall be obtained.
• From 20 workers up to 99 Egyptian workers, 10% relative weight shall be obtained.
• From 100 workers up to 500 Egyptian workers, 20% relative weight shall be obtained.
• For more than 500 Egyptian workers (labor-intensive), 30% relative weight shall be obtained.

• It shall be taken into account that a recent insurance certificate shall be presented in the name of the company for the current year indicating the total number of insured workers.

Standard (4): Location:

• Outside the investment map of the projects targeted for development, 10% relative weight shall be obtained.
• According to the investment map of the projects targeted for development, 20% relative weight shall be obtained.

For the Beneficiaries of Relative Weight:

1. In the case of joint-stock companies, the beneficiary shall be the shareholder, the representative of the legal person, and the Board of Directors.
2. In the case of (Limited Liability Companies), the beneficiary shall be the partner, the representative of the legal person, and the manager.
3. In the case of (Sole Proprietorship), the beneficiary shall be the general partners and directors.
4. In the case of (One-person companies) for the natural person, the beneficiary shall be the owner or founder of the company only.
5. In the case of the legal person, the beneficiary shall be the owner of the company provided that they have the right to manage and sign.

For the number of Beneficiaries of Relative Weight:

1. If the company obtains a percentage from 30% to 50%, it shall have the right to obtain two (2) residence permits.
2. If the company obtains a percentage of more than 50% to 75%, it shall have the right to obtain (4) residence permits.
3. If the company obtains a percentage of more than 75% to 90%, it shall have the right to obtain (6) residence permits.
4. If the company obtains a percentage of more than 90%, it shall have the right to obtain (8) residence permits.

As Regards the Period of Residence and Renewal:

1. Residence shall be granted during the first year for one year from the date of approval of the concerned authorities.
2. The residence shall be renewed for one year after proving the seriousness through an executive position committee.
3. The residence shall be granted or renewed for five years or the same validity period of the Board of Directors or of the tenure contract (whichever is less) after determining the date of the start of the activity or production, as the case may be.

After fulfilling the required relative conditions and criteria, an application shall be submitted to recommend granting residency to the investor and there shall be submitted the required documents, which are as follows:

1. An application on the company’s letterhead, in the name of the Head of the Investment Services Sector to grant an investor residency on such form as prepared for this purpose.  However, this application shall be stamped with the company’s seal and signed by the authorized signatory.
2. A copy of the investor's passport.
3. A recent extract from the Commercial Register, which has not been issued for 3 months, indicating the term of the current Board of Directors.
4. Completing the relative weight form of the company or establishment and submitting documents indicating each category.
5. Projects that have been established for a year and that have not started the activity shall submit a statement to the committee on (inspection/executive position) where:

• The projects that have started the activity shall submit a copy of the certificate of commencement of the activity;
• The projects that were inspected by an inspection committee five years ago shall apply for an executive position committee.

6. A recent copy of the approved document, indicating that the foreigner holds stocks/shares in the company or is a representative of a legal person.
7. A copy of the ownership document; in case of a lease, it shall be notarized at the real estate registry, with the original to be submitted for review and verification.

1. A copy of the practice license issued for free zone enterprises and investment zones.
2. An official power of attorney for the real estate publicity from the Chairman of the Board of Directors or whoever has the right to sign on behalf of the company, including the completion of procedures related to the residency or dealing with government agencies, or authorization from the Chairman of the Board of Directors with a valid bank signature.
3. Payment receipt for performing the service.