On October 29, 2023, Law No. 173 of 2023 (the"Amendment") was issued to amend the provisions of the Importers Registrar Law No. 121 of 1982 (the "Importers Registrar Law").
The Amendment aims to eliminate the restriction on foreign ownership imposed by the Importers Registrar Law, which required a company to have at least fifty-one percent (51%) of its share capital owned by Egyptians in order to qualify for registration with the Importers Registrar.
Pursuant to the Amendment, the Egyptian shareholding requirement is lifted and the registration of foreign investors in the Importers' Registrar is now, subject to certain conditions, allowed as part of the Egyptian Government's efforts to attract more foreign direct investors to Egypt.
According to the Amendment, the joint stock companies, partnerships limited by shares, limited liability companies or partnerships, where the quotas or shares of their partners/shareholders are not owned by Egyptians or owned thereby at a rate less than fifty-one percent (51%), may be registered with the Importers Registrar (and, therefore, obtain an import license) for a period of not more ten (10) years. However, this term may be extended for an additional ten (10) years upon a decision of the Prime Minister, based on a proposal from the Minister of Foreign Trade and Industry.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
