Question 1

What is the "Golden License" in the Egyptian Investment Law, and which companies are eligible to obtain it?

Accepted Answer

The "Golden License" is a single, comprehensive approval issued directly by the Cabinet. It condenses and supersedes all necessary permits and licenses required to establish, operate, manage, and construct a project. This license is granted to companies establishing strategic or national development projects (such as green hydrogen, artificial intelligence, infrastructure, or manufacturing) or public-private partnership projects, aiming to fast-track investment activities and eliminate bureaucratic delays.

Question 2

What are the requirements and documents needed to open a corporate bank account (under incorporation) in Egypt?

Accepted Answer

To open a bank account under incorporation for depositing capital, banks typically require: the trade name reservation notice from GAFI, copies of the founders' national IDs or passports, and the power of attorney for incorporation (if handled by an agent). Once the Commercial Register and Tax Card are issued, the account is officially converted into an active corporate account.

Question 3

Can an employer unilaterally amend employment contract terms or reduce an employee's salary?

Accepted Answer

According to Egyptian Labor Law, an employer cannot unilaterally amend the contract, reduce the salary, or downgrade the job role. Doing so is considered a breach of contract and arbitrary action, giving the employee the right to seek compensation or terminate the contract while retaining all legal rights, unless the amendment is made through a mutual written agreement or due to extreme business necessity that does not prejudice the worker.

Question 4

What is the difference between a One-Person Company and a Limited Liability Company (LLC) in Egyptian law?

Accepted Answer

A One-Person Company is founded by a single shareholder (natural or legal person) whose liability is limited to the company's capital. On the other hand, a Limited Liability Company (LLC) requires at least two partners and a maximum of 50. Liability in an LLC is also limited to the partners' respective shares, making it more suitable for partnerships and scalable businesses.

Question 5

How does the Egyptian legislator protect corporate intellectual property and trademarks?

Accepted Answer

Intellectual property is protected under the IP Rights Law No. 82 of 2002. Registering a trademark grants the company an exclusive right to use it and provides legal protection for a renewable period of 10 years. This enables the company to sue any entity for trademark infringement or counterfeiting, claim deterrent financial damages, and shut down the violating facility.

Question 6

What are the tax advantages and incentives granted to projects established within Free Zones in Egypt?

Accepted Answer

Projects established in Free Zones enjoy a total exemption from corporate income taxes, VAT, and customs duties on all machinery, equipment, and raw materials imported for their operations. Instead of traditional taxes, these projects are subject to a modest annual fee ranging from 1% to 2% of the value of imported/exported goods or total revenues, depending on the project's nature.

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