The draft commercial registry law adopted by the cabinet will positively affect the March Economic Summit attracting Arab and foreign investments, according to Minister of Supply Khaled Hanafy.
Hanafy said in a statement that the law will facilitate the registration procedures within the commercial registry for citizens. It will also create an environment attractive for investments based on transparent rules that will give investors confidence in the performance of the Egyptian economy, he said.
The law cancels the multiple registrations of companies and businesses with multiple branches, meaning they would now only have one registration number regardless of the number of branches. It requires an up-to-date database on commercial and industrial activities to help professionals make accurate decisions, and will automatically delete a registry five years after its validity expires if it is not renewed.
Hanafy added that the law will provide the legal guarantees governing the Egyptian investment business.
He added that the ministry is currently studying a plan to modernise Commercial Registry offices to a higher standard by linking them with commercial chambers in an electronic web. A single window service will be activated to comply with the requirements of international organisations such as the World Trade Organization (WTO) and others.
On Tuesday, Minister of Industry, Trade, and Small and Medium Enterprises, Mounir Fakhry Abdel Nour, said his ministry has already prepared two draft laws. The first will regulate partnerships, with the second to amend Law 159/1981, promulgating the Law of Corporations, limited companies by shares, and limited liability companies.
According to the statement, Abdel Nour said both draft laws were sent to the Supreme Committee for Legislative Reform. They will be prepared for dialogue sessions with stakeholders to hear their views and reach final-agreed upon drafts.
“The preparation of both draft laws took place during the Egyptian Regulatory Reform and Development Activity (ERRADA), which is under the supervision of the ministry, and it aims to revise existing laws for the economic system, and issue new ones to create a more attractive investment environment,” said Abdel Nour.
The Egyptian government plans to hold an economic summit next March to shift the economy, which was adversely affected since 2011. The summit will include launching 30 investment projects in Egypt, half of which will be projects in the energy sector.
The conference aims to attract investments worth $15 to $20m.