EGYPT INTRODUCES BENEFICIAL OWNERSHIP DISCLOSURE REGULATIONS

Changes to Commercial Register Law in Egypt

Egypt has made significant changes to its commercial register law, requiring companies to disclose their ultimate beneficial owners. A new amendment to the executive regulations of the Commercial Register Law No. 34/1976, introduced through Ministerial Decree No. 41/2020, has brought this change into effect.

Key Requirements for Companies

• Maintain a register of ultimate beneficial owners, including information such as:
  • Name
  • Nationality
  • National ID number (for Egyptian individuals)
  • Passport number (for non-Egyptian individuals) or registration number (for juristic persons with beneficial ownership/control over the company)
• Update this register regularly with any changes to the required data

Public Availability of Beneficial Ownership Information

The information on the ultimate beneficial ownership of companies is now available in the public domain. Companies are also required to maintain the register during their entire term of operation and for five years after they cease operations or deregister from the commercial registry.

Implementation and Compliance

• The amendment came into effect on March 9, 2020
• Companies must comply with the new requirements upon renewal of their commercial registration or introduction of any updates to the register
• Failure to comply may result in a fine under the general penalty stated in the Commercial Register Law (EGP 10 - EGP 100)

Seek Professional Advice

It is essential for companies to seek professional legal advice before taking or refraining from any action as a result of the contents of this document. The information provided here is for informational purposes only and does not constitute legal advice.