granting residency to investors. This is done to support and attract investors to establish investment activities in Egypt, but under the presence of regulations according to the General Authority for Investment and Free Zones. Egypt provides conducive conditions for investors, creating an environment that makes it attractive for investors and a gateway to attract foreign investments.
Types of Investors and How They Obtain Residency
First: Investor in a company subject to Law No. 72 of 2017: –
A foreign investor can obtain residency based on a recommendation issued by government services at GAFI , which would give the investor a one-year residency upon establishment, and it will be renewed according to the term of the board of directors and the type of company – in the event of starting activity – after verifying seriousness through the Executive Position Committee.
GAFI recommendation is the approval of GAFI to grant residency to the investor and is subject to the relative weight of the company.
The relative weight is a calculation carried out based on certain criteria in which the number of foreign investors who may be granted residency is determined.
The criteria by which the relative weight is calculated are “company activity, number of workers, capital, and location of activity” as follows: –
Company activity:
If the company practices an investment development activity and is indicated in the commercial registry, the percentage will be 20%. If other activities are indicated in the commercial registry, then the percentage will be 10%.
Company number of workers “divided into a number of categories”:-
- From 5 workers to 19 workers, the percentage is 5%
- From 20 workers to 99 workers, the percentage is 10%
- From 100 workers to 500 workers, the percentage is 20%
- Above 500 workers, the percentage is 30%.
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The company’s capital:
Cases in which the company is granted a 10% percentage depends on company capital :-
- Joint stock companies: 250 thousand pounds up to one million pounds.
- Limited liability companies: from 50 thousand pounds to one million pounds.
- Individual companies: 300 thousand pounds only up to one million pounds.
- One person company: from 50 thousand pounds to one million pounds.
- Individual establishment: 100 thousand pounds.
- If the capital is more than 1 million to 5 million Egyptian pounds, the percentage is 15%.
- If the capital is more than 5 million Egyptian pounds to 15 million Egyptian pounds, the percentage is 20%.
- If the capital is more than 15 million, the percentage is 30%.
All previous amounts are in Egyptian pounds or its equivalent in foreign currency.
Activity location:
The percentage granted varies according to the location of the activity. If the project is in remote areas, that is, in the targeted investment areas, then 20% is obtained, and if it is outside the targeted investment areas, then the percentage is 10%.
These criteria determine the relative weight of the company and thus the number of foreign investors to whom residency can be granted, as follows:
- Relative weight percentage from 30% to 50%: Residency is granted to 2 foreign investors.
- Relative weight percentage from 50% to 75%: Residency is granted to 4 foreign investors.
- Relative weight percentage from 75% to 90%: Residency is granted to 6 foreign investors.
- Relative weight percentage greater than 90%: Residency is granted to 8 foreign investors.
Second: Investor in a company subject to Law No. 159 of 1981: –
The investor must obtain a work license from the Ministry of Manpower where the company is based before obtaining residency from the Passports and Immigration Department.
How the investor obtains residency, and the permitted number is determined according to the type of company and capital as follows:
First: Joint stock companies:
A work license is granted to one foreigner if the capital is a minimum of 35 thousand dollars.
The license is granted to 3 or fewer persons, provided that the capital is not less than 50 thousand dollars.
The license is granted to 6 foreigners if the company’s capital exceeds 100 thousand dollars or more.
Second: Limited Liability Companies:
The license is granted to one person only, provided that the capital is not less than 35 thousand dollars.
The license is granted to 3 or fewer, provided that the capital is 50 thousand dollars or more.
The license is granted to a maximum of 6 foreigners (whether manager or partner), provided that the company’s capital is not less than 100 thousand dollars.
Kindly note that the capital shares shall be fully paid, and the foreigner is a director or partner in the company.
Third: – One-person companies:
If the founder or owner is a natural person
- A business license is granted to only one person, whether he is an employer or a company director, provided that the capital is not less than $35.
- A worker license is granted to two people, whether the employer or the company director, provided that the capital is not less than 50 thousand dollars.
- A work license is granted to a maximum of 3 people, provided that the employer is one of them and provided that the company’s capital is not less than 100 thousand dollars.
If the founder or owner is a legal person:
The license is granted to one foreigner if the capital is 35 thousand dollars.
A work license is granted to a maximum of 2 people in the profession of company manager, provided that the company’s capital is not less than 50 thousand dollars.
