Importing is a key part of the State's trade and economic system. It plays a vital role in providing strategic goods, raw materials, and production supplies that the local market may be reluctant or unable to provide. Given this activity's seriousness and direct connection to economic development, Egyptian lawmakers have placed it under strict legal rules that govern it and define its scope of practice.
The law requires companies wishing to engage in import activities to meet specific requirements relating to their legal form, capital, and registration procedures in the importers' register, as well as their ongoing obligations to regulatory and customs authorities. Therefore, engaging in this activity without complying with the established regulations will render transactions invalid and may result in legal and criminal liability.
In this article, we will identify the most important requirements and obligations that companies shall observe before engaging in import activities in Egypt, and the practical importance of these controls in protecting the public interest and regulating the business environment.
Registration with the importers' register:
Import activities for commercial purposes may only be conducted by entities whose names are registered in the importers' register. Registration shall be made for specific commodity categories specified by the General Organization of Export and Import Control (GOEIC). The GOEIC is the authority responsible for supervising import activities in Egypt, whether the registration is for individual establishments, partnerships, or corporations. The requirements and controls for registration vary according to the type of legal entity, whether in terms of registration requirements, renewal, amendment of information, or deregistration, and compliance with the controls set forth in the Importers Registry Law 121 of 1982, as amended by Law 7 of 2017, Law 173 of 2023, and the decision to amend Article 2 of Law 121 of 1982 regarding the Importers Register. Registration shall take place after the legal entity has been established and has commenced import activities.
1. The company shall be registered in the commercial register and have a proven history of import activity for one year prior to registration in the importers' register (whether the registration is for sole proprietorships, partnerships, or trust companies).
2. The company shall have a tax card stating its import activity, or a document stating its import activity (whether the registration is for sole proprietorships, partnerships, or trust companies).
3. The owner of the facility and the proxy, if any, shall be Egyptian nationals (for the registration of sole proprietorships).
- The manager responsible for imports, signing import contracts, and dealing with the GOEIC shall be an Egyptian national. Also, their name shall be registered in the company's commercial register (for partnerships and trust companies).
4. The business shall have been operating for at least two consecutive years prior to applying for registration in the importers' register. The volume of business for the establishment, as evidenced by the tax return, shall not be less than two million pounds. A certified copy of the tax return shall be submitted (for the registration of sole proprietorships).
- The business shall have been operating for at least one year prior to applying for registration in the importers' register. The volume of business in the last year prior to registration in the importers' register, as evidenced by the tax return submitted to the tax authorities, shall not be less than EGP five million. A certified copy of the tax return shall be submitted to the competent official (For the registration of partnerships and trust companies).
5. The capital registered in the commercial register shall not be less than EGP 500,000 (for the registration of sole proprietorships).
- The paid-up capital registered in the commercial register shall not be less than EGP two million for partnerships and limited liability companies, and EGP five million for joint stock companies and limited partnerships (for the registration of partnerships and trust companies).
6. In trust companies (joint stock companies, limited liability companies, and limited partnerships) and partnerships, foreigners may own 100% of the capital and be registered in the importers' register. However, the total period of registration shall not exceed ten years from the date of entry into force of Law 173 of 2023, and may be extended for a single period not exceeding ten years by a decision of the Council of Ministers, based on a proposal by the Minister responsible for foreign trade affairs.
7. The company's headquarters shall be situated in Egypt. The company shall be established in accordance with Egyptian law (for sole proprietorships, partnerships, and trust companies).
8. A cash deposit or bank guarantee letter equivalent to EGP 50,000 shall be submitted, along with the relevant receipt (for sole proprietorships).
- A cash deposit or bank guarantee letter equivalent to EGP 200,000 shall be submitted, along with the relevant receipt (for the registration of partnerships and trust companies).
9. The applicant or person responsible for importing shall obtain a certificate of completion of a training course on import activities, be of Egyptian nationality, and submit the original certificate to the competent official (for sole proprietorships, partnerships, and trust companies).
10. The owner of the facility or the person responsible for imports shall meet the requirements stipulated in Article 2 of Law 121 of 1982 as amended (with regard to the registration of sole proprietorships).
- Partners, directors, or persons responsible for imports shall meet the requirements stipulated in Article 2 of Law 121 of 1982 as amended (with regard to the registration of partnerships and trust companies).
11. The application for registration in the importers' register shall be submitted, signed by the applicant or their proxy, to the competent official (in the case of registration of sole proprietorships).
- The application for registration in the importers' register shall be submitted, signed by the authorized signatory on behalf of the company or the manager responsible for imports, to the competent official (in the case of registration of partnerships and trust companies).
12. A declaration of registration in the importers' register, an official extract from the birth certificate of the applicant and the person responsible for the import, and a recent commercial register issued within the last three months, shall be submitted (whether the registration is for sole proprietorships, partnerships, or trust companies).
13. Partners, directors, or persons responsible for imports shall not be members of the Egyptian Senate, the House of Representatives, or local people's councils, nor shall they be full-time politicians for the duration of their office or full-time employment, unless they are already engaged in such work (with regard to the registration of partnerships and trust companies).
14. Submitting a certified copy of the company's articles of association and any amendments thereto, to be registered, published, and recorded in the company's commercial register. The commercial register shall include that the paid-up capital is not less than EGP 2 million and that the company's activity is importation. The capital may be 100% foreign-owned (For the registration of partnerships and trust companies).
15. Submitting a bank certificate stating that the company's capital (EGP two million) has been paid in full, where it is not mentioned in the commercial register that (the amounts paid and deducted from the capital are EGP two million) (for the registration of partnerships and trust companies).
16. The importer has the right to register the required categories as per the import activity in the company's commercial register (whether the registration is for sole proprietorships, partnerships, or trust companies).
Reservations are made online through the official website of the GOEIC, by the person who has the right to manage and sign, or the manager responsible for imports, and by registering the company's tax registration number.
The applicant shall attend the official appointment specified by the website, submit the documents listed above for review, and complete the required registration or fulfillment procedures.
The required fees and insurance are paid into the account of the GOEIC.
Following a review of the technical and financial information, the registration card is printed and delivered to the applicant, their representative, or the person responsible for imports.
Import card registration validity:
The import card is valid for five years from the date of issue, provided that all required documents are complete.
The import card is for 3 months from the date of issue, provided that the documents required for registration are complete. Once these documents are complete, the card shall be issued for a period of five years.
The validity of registration of companies in which Egyptian partners hold less than 51% of shares shall not exceed 10 years from the date of entry into force of Law No. 173/2023.
Renewal of registration with the importers' register:
Companies, partnerships and trust companies registered with the importers' registry shall renew their registration every five years from the date of registration or the last renewal of registration. It can also be renewed within 90 days of the expiry date of the import card. If the registration is not renewed within 90 days of the expiry date, it will be administratively revoked, and the card will be issued after renewal for another five years.
1. No more than one year has passed since the expiry date of the import card registration without renewal (for sole proprietorships).
- No more than 90 days have passed since the expiry date of the import card registration without renewal (for partnerships and trust companies).
2. The export activity shall not have been deregistered from the commercial register submitted at the time of registration or last renewal (whether the renewal of registration is for sole proprietorships, partnerships, or trust companies).
3. The Commercial Register shall not have been deregistered, nor shall the file have been permanently suspended by the Tax Authority due to the expiration of the natural person of the owner of the facility or the expiry of the legal personality of the company (whether the renewal of registration is for sole proprietorships, partnerships, or trust companies).
4. The capital registered in the commercial register shall not be amended to be less than the minimum amount legally required for registration in the importers' register (EGP 500,000) (for the registration of sole proprietorships).
4. The capital registered in the commercial register shall not be amended to be less than the minimum amount legally required for registration in the importers' register (EGP 2,000,000) (for the registration of partnerships and trust companies).
5. The importer shall not have been subject to a final judgment for committing any of the violations specified in Articles (2, 6) of Law 7 of 2017, as amended by Law 121 of 1982 (whether it is the renewal of registration for sole proprietorships, partnerships, or trust companies).
6. The original renewal form of registration with the Importers Register shall be submitted, signed by the applicant or the person responsible for the import in the commercial register, to the competent official, or certified with a bank signature from the bank account of the applicant or the person responsible for the import (whether the registration renewal is for sole proprietorships, partnerships, or trust companies).
7. If the documents are submitted by a proxy, a power of attorney and a copy of the national ID card of the proxy shall be submitted to the competent official (whether the registration renewal is for sole proprietorships, partnerships, or trust companies).
8. Submitting a valid tax card and a recent commercial register issued within the last three months (for the renewal of sole proprietorships).
- Submitting a valid tax card, the original basic information document proving the import activity, a recent commercial register issued within the last three months, the company's articles of association in the Investment Gazette, and all amendments made thereto (for the renewal of registration of partnerships and trust companies).
9. In the event that the person responsible for import is an employee of the company or establishment, a recent insurance certificate (F1 Insurance) shall be submitted. If the person responsible for import in the commercial register has been replaced, an import license shall be obtained and submitted to the competent official (whether the registration renewal is for sole proprietorships, partnerships, or trust companies).
10. In the event that the letter of guarantee is extended, the original letter shall be submitted with the extension, or a new original letter in the name of the GOEIC (whether the registration renewal is for sole proprietorships, partnerships, or trust companies).
The importer shall, in the event of any amendment to the basic information of the facility or company, prove such amendment on the import card. If such an amendment results in the facility or company failing to meet one of the requirements for registration, the registration shall be revoked from the Importers Register. The amendment shall be made in the Importers Register within 60 days from the date of occurrence.
Cases of deregistration from the Exporters Register:
There are two cases of deregistration from the Importers Register, either by the importer or by force of law by a decision by the GOEIC; namely:
Deregistration shall be made in accordance with the Deregistration application form signed by the applicant, the person responsible for import, or the authorized signatory, or stamped with the bank seal of the company or facility owner.
The deregistration fee shall be paid. Valid import cards issued to the facility or company shall be submitted, along with a copy of a recent commercial register issued not later than 3 months.
The administrative deregistration shall be made if more than 90 days have passed since the expiry of the import card without renewal. However, the deregistration decision is issued by the GOEIC at a known branch.
The deregistration shall be legally made in the following cases:
- If the import activity is deregistered from the commercial register, or the capital is adjusted to be less than the minimum capital required by law for registration.
- If the commercial register is deregistered and the file with the Tax Authority is permanently closed due to the expiry of the natural or legal person.
- In companies where Egyptians hold less than 51% of the shares, 10 years after Law No. 173 of 2023 came into effect, registration under this law requires that the total period of registration in the Importers Register not exceed 10 years from the date of implementation of this law.
- After the final deregistration decision is issued, the security deposit amount will be refunded, provided that there are no open import letters.
1. Importation shall be invalidated where imports are carried out by a person or company not registered in the Importers Register.
2. Confiscation of imported goods: The Customs Authority may confiscate the goods subject to violation in accordance with the provisions of the law.
3. Financial penalties: Financial penalties may be imposed on violators, which may amount to the value of the imported goods or part thereof.
4. Criminal liability: In some cases, violators are referred to the public prosecutor for violating the provisions of the law, which may result in criminal penalties such as fines or imprisonment.
5. Banning from doing business: The importer is not permitted to engage in import activities for its own benefit without completing the registration and filing procedures.
In conclusion, engaging in import activities in Egypt requires full compliance with the governing laws and regulations, foremost among which is the requirement to register with the Importers Register as a prerequisite for conducting activities in a legally sound manner. Failure to comply with this requirement may result in severe penalties that could disrupt the company's operations and affect its investments.
The role of professional legal expertise is therefore crucial in ensuring that investors complete all procedures efficiently and quickly, while avoiding legal or regulatory risks.
At Sadany & Partners Law Firm, we offer our clients our deep expertise in this field. We are the ideal legal partner to guide our clients through every step of the registration process and import activities. We provide comprehensive legal solutions that protect our clients' interests and support their investments.