i. Works carried out by the Firm
1. Performing due diligence and assisting companies in acquisition.
2. Performing audit work and assurance of compliance with the Egyptian accounting standards.
3. Re-assessment services in light of applicable laws and regulations.
4. Public offerings of shares and securities at local and international financial markets.
5. Design and audit of internal controls.
6. Budgeting and business planning.
7. Regular internal audit services for avoidance of errors through applying a periodic auditing.
8. Delivery of technical counseling services related to selection of PC applications.
9. Restructuring of troubled companies.
10. Counseling services related to selection of finance companies and preparation of international agreements.
11. Counseling services related to laws of multinational companies and avoidance of double taxation agreements.
12. Studying and restructuring human resources, as well as carrying out measurements related to its cost at the activity level.
13. Assisting in determination of the extent of utilization of local and international governmental grants and benefits.
14. Undertaking tax liabilities on behalf of companies for all types of tax.
15. Preparing of financial statements and expressing its view in that regard.
16. Auditing in accordance with the Egyptian accounting standards.
17. Taxes consultations and services.
18. Preparing of document cycles and accounting systems for companies.
19. Preparing of feasibility studies.
20. Preparing of studies of fair value determination.
21. Preparing of costing systems.
ii. Establishment of joint- stock companies
Proposed business activity and its main purposes:
Establishment of companies is pursuant to provisions of law # 159/1981 amended by law # 3/1998. Furthermore, a company is established pursuant to the Law of investment guarantees and incentives #. 9/1997, taking into account the revocation of tax reliefs thereof. The issued capital of such companies should be no less than 250,000 EGP, 10% thereof is paid upon establishment of the company. Then, the capital is increased to become 25% within a three-month period commencing on the date of commercial register issuance. Afterwards, the capital is completed to become 100% within five years.
Required documents:
- A bank statement attesting the deposit of 10% of the capital of the joint stock company.
- Copies of identification cards or passports of incorporators or principal, in addition to birth certificates of minors (If any).
- A power of attorney made by incorporators to incorporators’ agent.
- An original copy of a lease agreement in the company’s name after issuance of the new company’s commercial register, provided that its date is established at the real estate publicity department for the purposes of issuance of the company’s tax card.
General legal rules for establishing a joint stock company pursuant to law no.159/1981:
- Minimum issued capital is (LE 250000) “Two Hundred Fifty Thousand Egyptian Pounds”. The percentage of foreign shareholding may be 100%.
- Minimum number of board members is “three”. All of them may be foreigners.
- Minimum value of qualification shares for each member is “Five Thousand Egyptian Pounds” (LE 5000).
- The membership of a board of directors may include a maximum number of two experienced members who may lack shareholding quorum.
- Minimum number of incorporators (either natural or artificial persons) is “three”, provided that the natural persons are legally competent, and that the artificial persons have a separate legal personality.
- Maximum share value is (One Thousand Egyptian Pounds) (LE 1000).
- Maximum licensed capital is (Ten times the issued capital).
- Minimum contributed capital is (Ten percent of the issued capital).
- Minimum value of cash shares is (One-quarter of the issued capital).
- Maximum value of real shares is (Three-quarters of the issued capital).
- A joint stock company shall have a trade name derived from the purpose of its establishment. The company may not take partners’ names or the name of any of them as its own address.
- Minors may contribute in a company as subscribers. In case of their contribution by their own money, permission should be obtained from the competent court.
- Real shares involved in the capital are assessed by a committee formed by the General Authority for Investment for this purpose.
- If a company underwrites its shares in public, then the issued capital shall not be less than (One Million EGP) ( LE 1000000).
- The articles of association of a company may include issuance of bearer shares, provided that it shall not exceed 25% of the total company’s shares and that it is fully paid.
Duration of establishing a company:
The duration of establishing a company ranges from one month to one month and a half.
Procedures of establishing a company:
- Required documents are submitted to the establishment department for review and fulfillment of the agreement with an attorney from the authority.
- The file is submitted to the establishment follow-up official in order to carry out the following:
- Assessment of duty
- Finalizing the procedures at the offices of the following bodies within the Complex:
- The Bar Association
- Capital Market Authority
- Registration Office
- Chambers of Commerce Federation
- Commercial Registry
- Procedures are finalized and the record is submitted to the person concerned at the commercial registry within two business days.