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The New Real Property Registration Amendments;

02-02-2021 The New Real Property Registration Amendments;   Law No. 186 of 2020 amending some provisions of the Real property Registration Law No. 114 of 1946, it stipulates a new registration process, also it decide that the real estate's owner will not be able to proceed any action with any governmental institution such as (The Egyptian electricity, water, and Gas Company), unless the real estate is registered and after submitting the register number. The following is a brief of the amendments: • The registration process: The amendment regulates the registration process of the real property by registering the court's final court judgement of one of the real property's right such as the ownership right; however this final judgement must resolve a conflict between two parties. 1- Submitting the final decision "judgement" registration's application to the competent authority; 2- The application shall include the required data that's stipulated in the executive regulations such as "the full court's final decision, the real property's information, a certificate that there is no violations upon the real property that required to be register); 3- Paying the required feed to the competent authorities;  4- Obtaining the required approval from the competent authorities if the property is located in the Sinai Development Authority, or from a non-Egyptian ownership office; 5- Obtaining the registration's temporary code from the competent registration office; 6- Publication in a wide-spread daily newspaper an advertisement containing the data stipulated in the executive regulation, and an invitation to anyone who has an objection to registering the property to present it before the competent judge within one month from the publication date ; 7- Then the temporary code is transformed into a permanent one if an objection is not filed on the specified date or if the objection is rejected; 8- If the objection is accepted, the temporary code will be canceled. • According to facilities and services on the property: also it decide that the real estate owner will not be able to proceed any action with any governmental institution such as (The Egyptian electricity, water, and Gas Company), unless the real estate is registered and after submitting the register code . • Entering into force; The law is issued on 05/09/2020; and it will come into force within six months from issuance date which is on 06/03/2021. If you need any legal assistance regarding the new amendments or any inquiry, don't hestitate to contact your contact in the firm, or contact us via email:azzam@azzam-lawfirm.com.  

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FQs of the non-Egyptian’s work permit

01-02-2021 Non-Egyptians, who are planning to reside for the purpose of working in the Arab Republic of Egypt, shall obtain a work permit from the competent Egyptian authorities, to be allowed to reside and practicing the authorized work in Egypt. However they shall be abroad "outside Egypt" during the recruitment period and until obtaining their security approval, but if they are already resident in Egypt before obtaining their work permit they may settle their situation, following the procedures and obtaining their work permit. The following are frequent questions regarding obtaining the work permit according to the Egyptian regulations: (1) What are the required documents to obtain a work permit for the first time? The required documents are: (1)The original and one copy of the following documents: 1- A power of attorney for the representative, or an approved delegation from the bank in the case that the name of the delegate is included in the insurance form;  2- A copy of the facility's commercial registry, tax card, company incorporation contract, companies ’newspaper Register of exporters and suppliers of companies operating in this field; 3-Social insurance for the Egyptian's employees for the current year, provided that the percentage of non-Egyptian workers in the establishment does not exceed 10% of Egyptians, also provided that insurance form number 2 have all the required signatures and seals; 4-Work experience's Certificate for the foreigner workers following the required conditions stated by the Egyptian regulations; 5-Syndicate approval if it's required ; 6-Letter of appointing  the two Egyptian assistants for each foreigner worker;  7- A list of the foreigners workers number; 8-The Notarized employment contract for the required nationalities. (2)Three copies of the foreigner worker's passport; (3) An official letter from the concerned facility addressed to the competent authority with the required data; (4) A security approval certificate. (2) What is the process of the foreigner's employee settlement, if they are already resident in Egypt and seeking to obtain their work permit, while still in Egypt? It is permissible to settle their situation without needing to re-enter Egypt again through the process of exemption from recruitment, which are as follows: An exemption request is submitted to the competent authority with the required documents such as:(the recruitment's company documents such as the commercial register, tax card, the establishment contract, the employee contract as well as the experience certificate of not less than three years. The application will be examined, if it's got accepted the required fees will be paid, which are fifteen thousand and two hundred Egyptian pounds "15200"L.E, and additional fees for each residence year for the foreigner in Egypt determined by the competent authority. (3) Who are the exempt categories from obtaining the work permit? There are categories that are exempt from obtaining a work permit under Egyptian regulations, such as: 1-The nationalities that are exempt according to an explicit provision in international treaty in which Egypt is a party of; 2- A foreign investor who obtained an "investor residency" according to the Egyptian regulations; 3-The foreign Embassies and consulate's administrative body, as well as the administrative body of the national and international organizations and agencies in Egypt; 4- Foreigners correspondents working in Egypt; 5- Foreigners voluntary clerics in Egypt. (4) Is there any restrictions of the foreigner employees number in the facility or it's affiliate according to the Egyptian regulations?  Yes, the maximum number of the foreigner employees in any facility or its branches is 10% of the total number of insured Egyptian employees, unless there's an exception. (5)What is the term of the work permit / its fees, and the exempt categories? The term of the license is one year or less. The fees differ depending on the employee's residency years, however the fees for obtaining the work permit for the first year is five thousand Egyptian pounds and it increase one thousand for the next three years after that duration there is another fees. The exemption categories from paying work permits fees are ; The nationalities which are exempt according to an explicit provision in international treaty in which Egypt is a party of, such as; Palestinian, Sudanese, Greek, Lebanese, Tunisian. (6) What are the reasons for revoking the work permit? There are cases in which the work permit is revoked according to the competent authority decision, if one of the following cases is present: 1- If the employee is sentenced for a felony or misdemeanor that violates honor, trust or public morals; 2- If the foreigner obtained a work permit based on false information; 3- If the work permit has been use in another profession that weren't authorized for; 4-Objection by the competent security authorities from obtaining the license for any reasons affecting the country's economic or social interests. (6) Are there any jobs that are forbidden for the foreigner employee to participate in? Yes, foreigner's employees are prohibited from working in the following professions and trades: 1-    Tourist guidance; 2-    Export and import business; 3- Customs clearance.  (8) Is it permitted for the employee to participate in work for one day or some days without obtaining the work permit? Yes, an employee are allowed to practice a work for a very short period such as one day or some days, however there is some conditions that must be met in order to be able to practice the work in Egypt without obtaining the work permit; 1- Obtaining a prior written approval from the competent authority; 2- Paying a fee estimated at (10%) of the value of his wage for these jobs, with a minimum of eight thousand Egyptian pounds and a maximum of fifty thousand Egyptian pounds, and the fee varies according to the multiplicity of the work performed. (9) What are the procedures in the case of refusal to grant/ renew the work permit? In the case of a refusal to grant / renew the work permit, the decision may be appealed, with the following procedures; 1- Submitting the appealing request within one month from the date of rejection; 2- Submitting the application in the name of the Director of Permits to Work for Foreigners at the Ministry of Manpower; 3- Explaining the reasons for the grievance with the presentation of new documents, if any; 4- Fees: There is no fee for submitting the appeal. The competent authority usually decide on the appeal within 15 days from its submission date .

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Amendments of the Egyptian Commercial Registry Law

01-01-2021 Law No. 198 of 2020 was issued on the 30th of September 2020, amending some provisions of the commercial registry Law No. 34 of 1976, the law amended the conditions for registration in the register, and whoever has the right to apply for registration, the dates as well as the fees of renewing the Registration.  The following is a brief of the amendments: 1- The terms of registration in the commercial registry:     1-  In order to be eligible to register you must be an Egyptian (however there is an exception for the foreigner (non-Egyptian) to be allowed to be register into the Egyptian commercial registry). 2- Obtaining the approval to trade from the competent Chamber of Commerce for individuals and companies that practicing any commercial activity. 3- Obtaining the approval to practice industrial activity from the competent industrial chamber for industrial establishments, regardless of their legal form (whether sole proprietorship,or company). 2-The Procedures for the registration: The application for the registration in the commercial registry shall be submitted during the period specified by this law's executive regulations. The submission of the application was within a month from the date of obtaining the license. The application may be submitted by: the trader, managers, legal representatives of the industrial establishment, a legal person, or a branch manager. The application shall be submitted to the commercial registry office in whose jurisdiction the head office or branch is located. 3- The Registration renewal 's dates: The registration in the commercial registry shall be renewed every five years from the date of registration or from the date of the last renewal, and the application is submitted by those referred to in the previous clause. Provided that the application shall be submitted during the month preceding the end of the five-year period, and the registration can only be renewed after the payment of the fees. The law granted an additional time limit for submitting the application, which is the ninety days following the expiration of the five-year mentioned, but with double of the fees. After the additional period (ninety days) has passed, the renewal application will be rejected, and the commercial registry may delete the registration. 4- The Law Effective Date: The amendment stipulated that the law would come into effect from the day following its publication, which is October 1, 2020. If you need any legal assistance regarding the registration in the commercial registry or any legal assistance, feel free to contact your contact in the firm, or contact us via Email: azzam@azzam-lawfirm.com

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Egypt enacts for the first time the Data protection law

20-07-2020 On 15 July 2020, Egypt issued the first Egyptian Data Protection law No.151 of 2020 aiming to provide strong protection to the individuals' personal data, and sensitive data which is in digital form. The following is a brief of the law: The protective Data: As it's aiming to protect two types of data: • The personal data which is related to any natural person who's recognized directly or indirectly by referring it with other information such as name, voice, image….etc. • The sensitive data which is stipulated the physiologic, mental, and the physical health, also the law considered the children data as a sensitive data. The law has excluded some personal data from its scope of the application such as personal data held by natural person for personal use, data processed for official statistics, data processed for the media purpose, data obtained for investigations and lawsuits, also the personal data held by the central Egyptian bank and the entities subject to its supervision except for the money transfer and exchange companies. The obligations imposed by the law: • The law obliges any controller or processor of personal data to appoint a personal data employee that will be responsible for the protection of the personal data and the implementation of the provisions of this law; • Furthermore the law imposes an obligation of obtaining the license from the personal data authority on the businesses that are considered data controllers or processors. Penalties imposed by law: The law stipulates for administrative sanctions that may reach to partial or total suspension, as well as criminal penalties such as significant fines and imprisonment for the violations of its provisions.  Effective data: • The law will come into force three month following its publication" so it will be effective on 15 October 2020", and it's executive regulations will be issued within six months following the effective data. • There is also a minimum grace period of 21 month for businesses in order to comply with it's provisions before applying the penalties rules. If you have any inquire about the law feel free to contact your personal contact in the firm, or contact us via email;azzam@azzam-lawfirm.com  

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The new amendment of the executive regulations of the child Act.

30-06-2020 The decree amending some provisions of the executive regulations of the Child Law. The Prime Minister issued Decree No. 1143 of 2020 amending some provisions of the executive regulations of the Child Law No. 2075 of 2010 regarding the Egyptian families wishing to care for a child according to the Alternative Families System.Taking into consideration the interests of the child, as well as fulfilling the desire of many families wishing to foster children. The following is a brief of the amendments: • The amendment has replaced some legal terms in order to achieve  the best interests of the children, so the term "foundlings" were replaced with the term "found children", the term "alternative families" with "alternative foster families", and the term "unknown parentage" with "high descent parentage"; • The alternative foster family shall be consisting of an Egyptian couple, however there's an exception that only one of the spouses may be an Egyptian; after obtaining the approval of the Supreme Committee of the Alternative foster Families, also the religion of the family shall be the same as the child's religion; • The age of the spouses have been modified, as the spouses' age shall not be less than 21 years and not more than 60 years, contrary to the previous practice, however the committee may exempt from the inadmissibility of the spouses ’age over 60 years according to the results of social research; • The decree has also amended the age condition of widowed, divorced, unmarried women who's at least thirty years; to submit a foster request, in contrast to the previous practice; • It has become permissible for the child to get the first name of the foster father's first name, or his last name, also it's eligible to get the foster mother's first name instead of the real mother name; this is without causing any affection of adoption; • The submission of the foster application has become electronic on the website of the Ministry, after that the Ministry sends it to the competent directorate in which the residence of the foster family or the competent civil institution is located; • The alternative foster family after getting the child in care must open a bank-account in Nasser Social Bank, or opening a saving bank-book for at least for three thousand pounds, or depositing this amount in the child’s account if there is a bank-account or a saving bank-book for him, then the family shall submit a photocopy of the deposit receipt for the Department of Families and Childhood in the directorate in which the foster family resides, however, those amounts shall not be disbursed under any circumstances unless there is an approval from the competent Committee; • The Ministry of Social security will issue an Identity Card "ID" for the alternative foster family, in order to be able to deal with all governmental and non-governmental entities, which will be renewed annually, the one (whether the one is the foster father or foster mother) who hold the ID will have the educational mandate for the foster child, however the alternative foster family shall notify the social administration annually with a certificate of proof of enrollment from the child's school; Also, the alternative foster family is doing the child's care duties free of charge; The foster family has the right to donate from their property, or to write as long as it's consisting with the law. • The decree authorized the granting of the alternative foster family the guardianship of the child; after passing the special evaluation carried out by the Ministry of Social security. If the guardianship is granted to alternative foster family, the child should be checked at least once a year by the competent authority. If you have any inquire relating to these amendments feel free to contact your personal contact in the firm, or contact us via email; azzam@azzam-lawfirm.com.  

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The Egyptian financial Authority Decree NO.91 of 2020

08/06/2020 The Financial Regulatory Authority (FRA) has issued Decree No. 91 of 2020 amending some rules for listing and removing securities listed on the Egyptian Stock Exchange (ESE) that allowed the members from outside the company to join both the review and risks committees as a guarantee of the impartiality. The main points of the decree: Regarding the reviewing committee: The decree implied a new rule which allowing the members from outside the companyt to join the reviewing committee in the listed companies, companies dealing in the securities, companies licensed to practice real estate financing, financial leasing and factoring activities, consumer finance companies, and microfinance companies; The committee shall be consisting of an odd number which shall not be less than three members from among the non-executive board members, however the majority of the committee must be independent and its chairman must be one of them; The decision urged the members of the committee to be known for their competence and experience in the company's field of work and that at least one of them have experience in financial and accounting affairs, and the committee may seek the assistance of an auditor or whoever it deems appropriate to attend its meetings (even if they are not a member). Regarding the Risks committee: The aforementioned companies must, upon establishing the risk committee, commit themselves to forming it from an odd number of members of no less than three, the majority of whom are from non-executive board members and independent members. The committee may include members from outside the company. The chairman of the committee must be from Non-executive or independent members. The (FRA) has granted these companies a period of time to reconcile their positions with a maximum period of 12/31/2020 in accordance with the decisions issued in this regard. If you have any questions concerning the issues raised above or would like to have a more detailed discussion, please feel free to contact us via email: azzam@azzam-lawfirm.com.

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the new amendment of the ultimate beneficial owners disclosure.

13-03-2020 The companies' registered in the Egyptian commercial registry are now under an obligation to identify their ultimate beneficial owners (UBOs) who have actual ownership or control over the company or any other legal entities, according to the new amendment to the executive regulations of the commercial registry law no.34/1976 by the Ministerial decree no.41/2020. The following is a brief outline the new amendments: The amendment imposes a new obligation on all companies and other legal entities registered under the commercial registry, to disclose their UBO's full information and record this information in a special register called the UBO Register; however this register is required to be updated regularly.  This register must include but not limited to; names of actual owners of the company, their nationalities, national ID number, or the passport number for non-Egyptians, also such register must be held throughout the lifetime of the company and for a period of five years after the company cases operations or in the case of de-registration from the commercial register. The date of Entry into Force:   The Amendment is entry into force on the 09th of March 2020, It is still unclear how this new amendments will be applied, so we will keep you update on the practice of this amendments and how the competent authorities will apply these rules. Compliance: The amendment obliged the companies registered in the commercial registry to comply with this rules, although there is no specific penalty for not complying with the stipulated amendments, however the general penalty stated in the commercial register law will be applied. If you need any legal assistance, feel free to contact us via email: azzam@azzam-lawfirm.com.  

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the one person company

03-03-2020 On January 2018, the Egyptian president has issued a law no.4/2018, amending some rules of the companies' law no 159/1981; one of these amending was about recognizing a new form of the companies that are eligible under the Egyptian litigation system; which is "the one person company". The one person company is essentially a limited liability company with a solo founder, whether national or foreigner, natural or juristic person, the founder is liable only with the amount of the capital of the company unless stated otherwise by the law; in addition that amendment has recognized establishing the company from the beginning with only one founder or partner, or transforming the company from a different type into the one person company whenever the multiple partners condition is not applied.   The following is a brief outline the terms of establishing a one person company:  What is the process of establishing the one person company? The establishing process proceeding with the notification of the founder to the GAFI and the notification must contain the following documents: 1-    A  memorandum association of the one person company; 2-    The approval of the competent authorities, if the company activity requires such approval;  3-    the approval shall be from the council of Ministries or the competent ministry In the case of establishing the company  by one of the general public persons; 4-    The receipt of payment with one out of thousandth, from the paid capital, at least 100 EGP and maximums of 1,000 EGP. The required documents for forming the company, after the notification:  1-    A none confusion certificate issued from the commercial registry; 2-    A banking certificate depositing the full capital; 3-    A copy of the national identification or the passport; 4-    A power of attorney; 5-    A security approval for the company's founder; 6-    A copy of the bar association card of the attorney; 7-    The certificate of the auditor of the company; 8-    A possession deed or the lease contract of the company's head quarter.   How to determine the name of the company? The company name shall be obtained from its purpose, or its founder name with a statement clarifies that it's a one person limited company.  How much the capital should be? The minimum of the capital is fifty thousand EGP; it shall be paid in advanced in full. What are the allowed/ restricted activities? The one person company can participate into the commercial, industrial,   professional activities. On the other hand, restricted from: 1-    Insurance, banking and saving; 2-    Receiving deposits and investing money on behalf of others; 3-    Establishing another one person company; 4-    Issuing the prospectus either at establishing or increasing the capital; 5-    Dividing the capital shares into the negotiable ones. When the one person company gains its legal capacity and what is the founder's liability limits? It gains its legal capacity at the registration date in the commercial register. The company responsibility is determined only by its capital, however that the founder responsibility turned into personality and unlimited in the following cases: 1-    At the assessment of the in- kind share value, the founder is responsible personally and unlimited to pay the difference between the actual and the estimated value; 2-    When compensating the damages to the company itself or others as a result of violation the obligation of due care that must be accomplished by him during the establishment process; 3-    If he was dissolute or suspend the activity of the company prior to its expiration date or accomplished its purpose. How to manage the one person company? The founder of the company has the right to be its manager, and he has all the authorities of the general assembly in the limited liabilities companies; however he has the right to appoint one manager or multiple managers complying with the limited liability companies' rules. The cessation of the one person limited company: The one person limited company may cessation in one of the following cases: 1-    If it has lost the half of its capital, unless the founder decided to continue its activity; 2-    The cassation of the juristic person the founder of the company; 3-    Incapacity of the owner; 4- The death of the owner, except for the case of a solo successor, or if the heirs decided to proceeded it in its legal form, having six months from the date of death in order to rectifying the legal status of the company in complying with the applicable rules.  

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