The executive regulations of the Investment Law regulated the residence of non-Egyptian investors and the use of foreign workers, where clear controls and conditions were set for granting residency to foreign investors in Egypt and the duration of residence, and the rules for the use of foreign workers in investment projects established in Egypt and their percentage were specified in Articles (4, 5, 6).).
To grant residency to non-Egyptian investors, the following conditions must be met :Copy
1- To 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 more than the duration of the project .
3- The Board of Directors of the General Investment Authority may add other conditions after the approval of the Ministry of Interior.
4- The residence permit shall be canceled in the event of the investor's exit from the company or the erasure of the company's registration based on liquidation or the erasure of the establishment from registration in the commercial register.
5- Accordingly, the residence application is submitted on the form prepared by the Authority for this purpose, and the residence is granted in accordance with the rules and controls issued by a decision of the Authority's Board of Directors after the approval of the Ministry of Interior in light of the categories and relative weights of each of the company's purpose, capital, number of employment, and the location of practicing the activity.
6- The period of residence at the beginning of the establishment shall be one year, renewed for another similar period if the seriousness towards starting the implementation of the project is proved, and then renewed for other periods, each of which does not exceed 5 years, and in all cases the period of residence must not exceed the duration of the project.
7- In investment projects, foreign workers are employed within 10% of the total number of project employees, and this percentage may not exceed 20% of the total number of project workers in the absence of qualified national labor.
· There are several factors or criteria for obtaining the recommendation (approval of the Investment Authority) to grant residency to the investor) as follows :Copy
· Standard (1) Capital of the Company :Copy
· Minimum for each form of law :
· Cases in which the company is granted 10%:
(Joint stock companies): EGP 250,000 up to one million Egyptian pounds, or its equivalent in foreign currency.
(Limited liability companies) from 50 thousand pounds up to one million Egyptian pounds, or its equivalent in foreign currency.
(Companies of persons) only 300 thousand pounds up to one million Egyptian pounds, or its equivalent in foreign currency.
(Single Person Company - Natural or Legal) from 50 thousand pounds up to one million Egyptian pounds.
(Sole Proprietorship) 100 thousand Egyptian pounds, or its equivalent in foreign currency.
· The company is granted 15% if the capital is more than EGP 1 million to EGP 5 million or its equivalent in foreign currency.
· The company is granted 20% if the capital is more than EGP 5 mn to EGP 15 mn or its equivalent in foreign currency.
· The company is granted 30% if the capital is more than EGP 15 mn or its equivalent in foreign currency.
· We notice with regard to the paid capital, the bank deposit certificate or a certificate of economic performance :Copy
1. The right to grant and renew residency for the sole proprietorship and the one-person company (natural person) shall be limited to its owner, provided that a deposit under a bank certificate for a period of one year in the amount of 200,000 US dollars shall be deposited in a bank, and the bank undertakes not to disburse the deposit except by a letter from the Authority and to ensure that the establishment and the company practice the activity, and the capital of the sole proprietorship shall not be less than 100,000 Egyptian pounds, and the capital of the one-person company shall not be less than 50,000 Egyptian pounds.
2. To grant and renew residency, a bank certificate in the name of the company or a certificate of economic performance must be submitted, provided that the company's capital does not exceed.
3. For joint stock companies, the bank certificate may be replaced by the amounts indicated in the company's commercial register, provided that it does not exceed the company's capital.
4. For limited liability companies, the foreign investor must be both a partner and a manager.
Standard (2) Company Activity :Copy
1. If the company's activity is outside the targeted purposes of development, any activities outside the investment law will be awarded 10%.
2. If the company carries out activities within the investment law and is targeted for development, it will be granted 20%, and these purposes are as follows:
· New and renewable energy activities.
· Heavy industry activities defined by the Industrial Development Authority, technological industries without assembly or software, pharmaceutical industry, feeding industries.
· Sub-university education activities.
· Integrated development activities (tourism - industrial - agricultural - urban).
· Reclamation and cultivation of desert wastelands with at least 500 acres of stable tenure.
· Hospital accommodation activities.
· Tourism activities (establishment and operation of hotels and tourist villages with a capacity of not less than 500 rooms, with the exception of 50% for border governorates and areas outside the Old Valley and remote areas).
· Infrastructure projects (drinking water and sanitation - electricity - roads - communications - subway lines)
· Petroleum Sector.
· Complete desalination projects (establishment, operation and management).
· Free zone projects whose export rate exceeds 80 %..
· Standard (3) Number of Workers :Copy
· From 5 workers to 19 Egyptian workers, 5% relative weight is obtained.
· From 20 workers to 99 Egyptian workers, 10% relative weight is obtained.
· From 100 workers to 500 Egyptian workers, 20% relative weight is obtained.
· More than 500 Egyptian workers (labor intensive) are obtained 30% relative weight.
* It should be noted that a recent insurance print is provided in the name of the company for the current year with the total number of insured workers.
· Standard (4) Location :-Copy
· Outside the investment map of the projects targeted for development, 10% relative weight is obtained.
· According to the investment map of the projects targeted for development, a relative weight of 20% is obtained.
· For beneficiaries of relative weight : -Copy
1. (Joint Stock Companies) The beneficiary is the shareholder, the representative of the legal personality and the composition of the Board of Directors.
2. (Limited Liability Companies), the beneficiary is the partner, the representative of the legal person and the manager.
3. (Companies of persons), the beneficiary is the general partners and managers.
4. (Single Person Companies) - For the natural person the beneficiary is the owner or founder of the company only.
- For the legal person, the beneficiary is the owner of the company and he must have the right to manage and sign.
5. (Sole Proprietorship) The beneficiary is its owner only
·As for the number of beneficiaries of the relative weight:Copy
1. In the event that the company obtains a percentage from 30% to 50%, it has the right to obtain (2) residency.
2. In the event that the company obtains more than 50% to 75%, it has the right to obtain (4) residency.
3. In the event that the company obtains more than 75% to 90%, it has the right to obtain (6) residency.
4. In the event that the company obtains more than 90%, it has the right to obtain (8) residency.
For the duration of residence and renewal : -Copy
1. Residence is granted during the first year for a period of one year from the date of approval of the concerned authorities.
2. Residency is renewed for one year after proof of seriousness through an executive position committee.
3. The residence permit shall be granted or renewed for a period of five years or the same period of the term of the board of directors or the duration of the title deed contract (whichever is less) after determining the date of commencement of the activity or production, as the case may be.
· After the required relative conditions and criteria are met, the application for recommending the granting of residency to the investor is submitted and the required documents are submitted, which are as follows:
1. A request on the company's publications 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 that has not been issued for 3 months and indicated by the term of the current board of directors.
4. Complete the relative weight form of the company or establishment and submit the documents indicating each category.
5. Projects that have been established for a year and that have not started the activity submit to an inspection committee (executive position or the beginning of an activity).
- 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 years submit an executive position committee.
6- A recent copy of the approved document indicating the foreigner's ownership of shares/shares in the company or a representative of a legal person.
7- 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.
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.
3. Payment receipt for the performance of the service.
Second: With regard to the investor's residence (foreign work license) under Law 159 of 1981:Copy
- It is called a work permit for foreigners, not a residence permit, whether it is a partner or a manager.
- The license is granted to one person (partner or manager) in a company whose capital is not less than 35 thousand US dollars .
- It is granted to three or less (partner or manager) in a company with a capital of not less than 50 thousand US dollars.
- The capital shares shall be paid in full and provided that the company continues to be managed .