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One of the Egypt investment's
aspects is the right to the private property and the
establishing of firms. Egypt assures the local and foreign
private companies the right to initiate and lead business
operations and the right to engage in all the lucrative
activity forms. Regarding the association with the Egyptian
partners to establish mixed companies with center in Egypt,
the Egyptian entrepreneurs want to associate with foreign
partners to establish mixed firms of production and
marketing with center in Egypt, taking in consideration the
next advantages: the foreign partners assure the technology
of fabrication and the quality of the products, the profit
that results after the application of the lower customs
taxes to the production imports, against the ones that
applies to the finite products from import.
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The Egyptian settlements allow the
foreign investors to have up to 100% from the social
capital invested in firms from the following
sectors: industrial, the development and cultivation
of the desert's land, tourism, houses, immovables.
The Egyptian public companies have the right to
associate with the foreign partners. The Egyptian
settlements, adopted beginning with 1991, don't
foresee any restrictions to the transfer of the
profit and to the repatriate of the invested
capital. |
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As regarding the
establishment of offices for the commercial representation,
the foreign companies have the right to establish
representation offices in the A. R.
Egypt according to the
law, only for activities of market research in the
scientific, technical and consultancy domains.
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The
representation offices can not hire commercial activities
(the contracts subscriptions, operations from which incomes
may result) and are not subject of the excises regime.
The
filial is another form of representation accepted by the
Egyptian law and it is related by the existence of an
ongoing contract with a local commercial entity that can be
involved in commercial, industrial and financial activities
but limited to the outgoing contract.
On the relation with Egypt,
the government from Cairo wants the investors to create new
work places for the young people. A foreign company who
wants to participate to auctions in Egypt has to nominee an
Egyptian commercial agent to represent its interests in this
country. |
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The participants to the
auction may meet some difficulties such as: the extension of
the offers validity requests, the cancellation on the won
contracts, the illegitimate cancel of the final acceptance
certificate of a product or works, additional requests of
the payees, all implying some extra costs.
The ones wanting to make
business in Egypt must take into consideration the next
things: avoiding the questions about the partner's family
and especially about the feminine part, do not wear long
hair, to avoid the showing of the foot sole (the gesture can
be understood as an insult), don`t be surprised if the
voice's tone rises during the conversation (it's something
normal), connect the action`s progress to temporal moments
and persons (either wise the business will disappear from
the partner's mind forever), don't ever embrace a business
woman.
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