A recent report by the Ministry of Investment and International Cooperation, which monitored the investment activity during the last period, indicated that 1,482 companies have been recently established in May. The total capital of these companies amounted to EGP 1.7bn. Moreover, 233 new companies increased their capital in the same period. The report noted that the total new investments total EGP 1.8bn, including EGP 295m of foreign investments.
The report, obtained by Daily News Egypt, compared the figures of May to their counterparts in April, which stood at 1,124 new companies with issued capitals worth EGP 1.4bn. The paid up capital of the new companies established in May 2017 amounted to EGP 232m, of which 80% came from Egyptians and 20% from foreigners.
Meanwhile, the total number of companies that witnessed expansions in capital during the month of May reached 233 companies, compared to 187 companies in April and 158 companies in May 2016. The total expanded capital in May registered EGP 1.6bn, down from EGP 2.6bn in April and EGP 1.5bn in May 2016.
Investment Minister Sahar Nasr said that the main incentives for the new investment law include non-tax incentives, such as exemptions from incorporation fees, registration, stamp duties, contract fees, and security registration fees for five years from registration. This is in addition to additional non-tax incentives, including the state bearing the cost of introducing project infrastructure and the cost of training and capacity building for labour, as well as repayment of half the cost of lands for some strategic sectors.
The report pointed out that in order to activate the investment law, Nasr issued a decision to form a committee to finalize the draft bylaws. This committee includes representatives of a number of ministries. The bylaws will be issued from the cabinet within 90 days from the president’s ratification date, according to the law. Nasr also issued resolution No. 94 for the year 2017 regarding the amendment of the bylaws of joint stock companies, private companies limited by shares, and companies with limited liabilities in Article 203. This aimed to enhance publication and disclosure as this amendment contributes to Egypt’s progress in ranking the ease of business index and strengthening governance and disclosure.
