Glaring issues still need to be addressed with the Importers Registry Law

Our friends at Sharkawy & Sarhan have highlighted a number of problems in the recently issued amendments to the Importers Registry Act. For one, the amendments — which allows foreigners to hold a 49% stake in an import company — does not resolve the issue of multi-tiered indirect ownership by foreigners. Prior to the amendments, foreigners would engage in indirect ownership of an importing company through an Egypt-based subsidiary. The amendments do not address whether they can hold a stake higher than 49% through the same means. Registered companies also have only six months to comply with the new capital requirements, which could see them lose their licenses. Minimum turnover requirements in the law may put off new entrants to the market.