The investor who wants to invest in tourism projects in Egypt should know the law which
regulates the investment process. In Egypt, companies are established under 2 articles, law No. 8
of the year 1997, known as “Investment Incentives Law” and law No. 159 of the year 1981,
known as “Money Company Law”. The laws for each have their advantages.
Companies in Egypt are two types:
1. Individual Companies - two types (limited partnership and general partnership)
2. Fund Companies - two types (limited liability company and joint stock company)
As well as a license for each type of activity, it must be known whether the following conditions apply:
- A hotel or a tourist village has requirements by the Ministry of Tourism.
- A diving center must meet requirements by the Ministry of Tourism as well as the Chambers.
- Restaurants fall under two categories of licensure. They are either under the government license or a license under the Ministry of Tourism. And each type has its advantages. Investors should also find out what entities have control over the restaurant, such as Ministry of Health, Censorship on Artistic Works and Ministry of Environment.
- Tourist transport companies have requirements from the Ministry of Tourism as well as the Traffic Office.
- Real estate companies or trade companies also have limitations.
- A boat has requirements that are a composite from the Ministry of Maritime Transport, Maritime Inspection, Ministry of Tourism and Intelligence Association.
Investors must also study the laws regulating types of taxes in Egypt. These laws are as follows:
- Law No. 91 of the year 2005, regulating the income tax and also taxes on employee’s salaries.
- Law No. 11 of the year 1991, regulating the sales tax.
- The Stamp Tax on signs and all kinds of advertising.
- Law No. 196 of the year 2008, that organizes the tax on built property.
- Insurance law regulating insurance to employees.
- Laws regulating work permits and residence permits for foreigners.
Also, investors must study the traffic laws, environmental laws and Maritime Law. It is very important that the investor knows these laws and their effects on each other. It is important also to know that investors must submit sales tax declaration monthly if the company is under sales tax, also submit a declaration for employees every three month and annual declaration on income tax. You must also know the laws regulating contracting in case of a contract, both are built on real estate, land or dealing with other companies or rentals of hotels and villages or boat rentals. Studying these laws will save you money and your investments. The top priority of the project is to choose a consultative chartered office which puts the proper financial planning, legal and tax of the project and gives the correct steps to establish a company to save the company from compensation and to save profits.
Contact:
Apartments 115/116 1st floor, Shrouk Hadaba Building (El Mandara), beside Calypso, Hurghada, Red Sea - Tel.: (002) 065 345 3108-9 or (002) 0122 574 5678
25 (A), El Obour Buildings, Salah Salem Street, Cairo - Tel.: (002) 022 401 1532
City Stars October, Tower 1, 3rd floor, Apartment 12, October City - Tel.: (002) 023 834 2519, (002) 023 834 2518
Building 398 in front of Jasmine Center, the first round, El Obour - Tel.: (002) 024 478 8882
4 Mostafa Kamel Street, from Fesal Street, El Taawon Station, Giza - Tel.: (002) 023 771 2409
25 (A), El Obour Buildings, Salah Salem Street, Cairo - Tel.: (002) 022 401 1532
City Stars October, Tower 1, 3rd floor, Apartment 12, October City - Tel.: (002) 023 834 2519, (002) 023 834 2518
Building 398 in front of Jasmine Center, the first round, El Obour - Tel.: (002) 024 478 8882
4 Mostafa Kamel Street, from Fesal Street, El Taawon Station, Giza - Tel.: (002) 023 771 2409
Taxes Consults: 0122 57 45678 - 0122 9686 111 - 0122 9686 222 - 0122 9686 333
E-mail:
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