Egyptian law throughout Germany

Egyptian Commercial and Company Law is a significant area of law that governs the organization and conduct of commercial activities as well as the structuring and regulation of companies in Egypt. It provides a legal framework for both domestic and foreign businesses that wish to operate in Egypt, ensuring that commercial transactions are conducted properly.

Egyptian Commercial Law

Egyptian Commercial Law is primarily regulated by the Commercial Code, which establishes the rights and obligations of traders and the conduct of commercial transactions. It covers, among other areas:

Commercial Contracts: Commercial contracts are agreements made between traders (including businesses). They govern transactions such as the buying and selling of goods, exchange of services, and conducting business transactions. Egyptian commercial law regulates how such contracts are made, what conditions they must fulfill, and how disputes can be resolved.

Commercial Companies: The different types of companies that exist under Egyptian commercial law are central to the structuring of businesses. These companies are subject to specific regulations and requirements. Key aspects include:

Company Formation and Structure: The formation of businesses and their legal structuring is a key element of commercial law. This includes registration, minimum capital requirements, and rules for managing companies.

Liability: Commercial law also governs the liability of shareholders and the company itself, particularly in the case of commercial partnerships.

Commercial Register: All companies and commercial partnerships must be registered in the Egyptian Commercial Register. The registration ensures that the company is legally recognized and has legal standing. The Commercial Register is publicly accessible and allows for the review of a company’s legal structure and its legal history.

Payment and Insolvency Procedures: Egyptian commercial law contains provisions on payments, debts, and insolvency procedures. These regulations deal with the settlement of payment claims, managing creditor demands, and the procedures in the event of company insolvency.

Egyptian Company Law

Egyptian Company Law covers the formation, organization, and management of businesses. It defines which types of companies are permissible in Egypt and establishes the rights and obligations of shareholders and directors. Key company forms in Egyptian law include:

Joint Stock Company (JSC):

A Joint Stock Company is one where the capital is divided into shares. This form is particularly suitable for larger businesses.

The minimum capital must be 250,000 Egyptian Pounds.

Shareholders are only liable for their invested capital and are not personally liable for the company's debts.

Limited Liability Company (LLC):

An LLC is a flexible form of company suitable for smaller and medium-sized businesses.

Shareholder liability is limited to the invested capital.

The company must have at least two shareholders, with a minimum capital of 50,000 Egyptian Pounds.

General Partnership:

In a general partnership, all partners are personally and jointly liable for the company’s debts.

This company form is particularly suitable for small businesses with few partners.

Limited Partnership:

This company form consists of at least one general partner (who is fully liable) and one or more limited partners (who are only liable up to their contribution).

It is a hybrid form between a general partnership and a joint stock company.

Branch of Foreign Companies:

Foreign companies can establish a branch in Egypt to conduct business.

Branches must adhere to certain governmental regulations, which can vary depending on the type of activity.

Joint Venture:

A Joint Venture (JV) is a partnership between two or more companies that collaborate to achieve a shared business goal.

Joint Ventures are common in Egypt, especially for foreign companies seeking access to the Egyptian market.

Regulation and Administration

Egyptian commercial and company law is regulated by several governmental institutions, including:

The Ministry of Commerce: This ministry is responsible for regulating commercial law.

The Investment Authority: It manages investment law and supports foreign investors.

The Egyptian Commercial Register: All companies must be registered here.

The Egyptian Tax Authorities: These authorities oversee the tax requirements for businesses, such as VAT and corporate taxes.

Key Legal Provisions for Businesses

Articles of Association: When forming a company, an articles of association must be created, outlining the rights and obligations of the shareholders.

Capital Requirements: Depending on the type of company, there are varying requirements for minimum capital to be raised for company formation.

Shareholder Rights: Egyptian company law defines the rights and obligations of shareholders, including the rights to profit sharing, access to information, and voting rights.

Corporate Governance Regulations: Egyptian company law also stipulates how companies must be managed, how the management should be structured, and what administrative structures must be in place.

Consulting in Egyptian Commercial and Company Law

For businesses and investors looking to operate in Egypt, it is crucial to understand the local legal framework. As a specialized lawyer in Egyptian commercial and company law, I offer support in the formation and management of your business in Egypt. I provide:

Advice on choosing the right company structure

Assistance with company formation and registration

Creation and review of articles of association

Guidance on complying with Egyptian business regulations and laws

Consulting on tax and legal obligations for foreign investors

With my support, you can ensure that your business activities in Egypt are conducted efficiently and in compliance with the law.

Egyptian contract law governs the legal aspects of contracts entered into between parties, and is primarily based on the general principles of the Egyptian Civil Code (Civil Code) of 1948. It addresses both commercial and private legal relationships and is of great importance for businesses and individuals operating in Egypt or engaging in business with Egyptian partners.

Fundamentals of Egyptian Contract Law

Freedom of Contract and Validity of Contracts: In Egyptian contract law, there is generally freedom to enter into contracts according to one's own terms, as long as they do not violate mandatory laws or public order. However, certain conditions must be met for a contract to be considered valid.

Conclusion of Contracts: A contract is concluded through an offer by one party and acceptance by the other party. A contract can be made either in writing or orally, although certain contracts (e.g., real estate sales or long-term lease agreements) require written form.

Offer: An offer is a declaration of intent aimed at concluding a contract, and it must sufficiently determine the terms of the contract.

Acceptance: Acceptance is the unreserved agreement of the recipient to the offer. Acceptance must occur within a specified time frame, as set by the offer or by law. A late or modified acceptance is considered a new offer.

Contractual Capacity: The parties to a contract must have the necessary contractual capacity, i.e., they must be of legal age and mentally able to understand the consequences of the contract. Minors and mentally ill persons can only enter into contracts under certain conditions, such as with the consent of parents or a legal representative.

Content of the Contract: The content of a contract must be clear and definite. A contract cannot contain uncertain or impossible obligations. Contracts that violate public morals or public order are void.

Types of Contracts under Egyptian Law

Egyptian contract law covers a wide variety of contract types, including:

Sale Agreement: The sale agreement is a common type of contract where a seller transfers goods to the buyer in exchange for a purchase price. The contract is legally binding under the provisions of the Civil Code once the sale contract is concluded, with the transfer of the goods and payment of the price being the essential elements of the agreement.

Lease Agreement: A lease agreement is a contract in which the landlord gives the tenant the use of a property or other asset in exchange for rent. Lease agreements are subject to specific regulations concerning the rent, lease term, and obligations of both parties.

Service Agreement: A service agreement governs the provision of services for payment. Here too, the duties of the parties must be clearly defined to avoid later disputes.

Employment Contract: Labor law in Egypt governs employment relationships between employers and employees. An employment contract can be concluded for either an indefinite or a fixed term. Certain statutory minimum standards must be met, such as working hours, wages, and working conditions.

Supply Agreement: In this type of contract, the supplier agrees to deliver goods, and the buyer agrees to make corresponding payments. Additional clauses, such as delivery terms, quality requirements, and liability for delayed deliveries, may also be included.

Construction Contract: A construction contract is concluded for construction projects, setting out the conditions for the construction services, price, timeline, and quality requirements.

Breach of Contract and Legal Consequences

Breach of Contract: A breach of contract occurs when one party fails to fulfill its contractual obligations or does so at a later date. The breach can be due to non-performance, poor performance, or delay.

Legal Consequences of a Breach of Contract: In the event of a breach, the affected party has various legal options:

Damages: The injured party can claim damages to cover the losses incurred.

Rescission: Under certain circumstances, the contract may be declared void if it has been materially breached.

Specific Performance: In some cases, the affected party can demand that the contract be fulfilled despite the breach, rather than simply claiming damages.

Force Majeure: Egyptian contract law allows for contracts to be suspended or terminated due to force majeure (e.g., natural disasters, wars, government interventions) if performance becomes impossible or unreasonable.

Limitation of Claims: In Egyptian law, claims generally expire after five years, unless there are specific contractual provisions or legal exceptions that set a different limitation period.

Special Clauses in Egyptian Contract Law

Dispute Resolution Clauses: In Egyptian contract law, it is common to include arbitration or mediation clauses as a method of resolving disputes, particularly in international contracts. In many cases, the parties agree that disputes will be resolved in an international arbitration court or an Egyptian court.

Jurisdiction: Contracts may specify the jurisdiction (the location where disputes will be resolved). In international contracts, Cairo or another internationally recognized location is often chosen as the venue for disputes.

Payment Terms: Payment terms (e.g., due dates, currency specifications, and methods of payment) are a central component of a contract and should be clearly defined to prevent future issues.

Consultation in Egyptian Contract Law

To ensure that your contracts in Egypt are legally valid and secure, it is advisable to seek legal advice at an early stage. I, Mohamed Saad, offer comprehensive advice and support in drafting, reviewing, and enforcing contracts under Egyptian law. I help you avoid legal uncertainties and find the best solutions for your business relationships.

Whether it is business contracts, sale agreements, service contracts, or lease agreements – I am here to assist with my expertise to ensure that your agreements are legally correct and enforceable.

Egyptian civil law forms the legal framework for many aspects of daily life and regulates private rights and obligations between natural and legal persons. It is primarily governed by the Civil Code of 1948, which contains fundamental principles of civil law and specific provisions for contracts, property, inheritance, liability, and family law. Egyptian civil law is largely based on the Roman-Germanic legal family and is influenced by the principles of Islamic law (Sharia), particularly in the areas of inheritance and family law.

Main Areas of Egyptian Civil Law

Contract Law (Contractual Obligations): Egyptian civil law regulates contracts between parties. The fundamental principle is that individuals and businesses can freely enter into contracts, provided that they do not violate public order or mandatory laws. A contract is formed through the offer of one party and the acceptance by the other, with both oral and written contracts generally being valid, unless the law requires a specific form.

Contractual Duties: Once a contract is concluded, the parties are obliged to fulfill their contractual obligations. If the contract is not performed (breach of contract), claims for damages may arise.

Types of Contracts: Common contracts in Egyptian civil law include sales contracts, lease contracts, employment contracts, works contracts, and service contracts.

Property and Possession: Civil law in Egypt also regulates questions regarding the ownership and possession of movable and immovable property. The Civil Code distinguishes between ownership and possession and defines the rights of the owner and the possessor.

Acquisition of Ownership: Ownership can be acquired through purchase, gift, inheritance, or transfer of possession. The acquisition of real estate also requires registration in the land register.

Protection of Property: Civil law protects property by prohibiting unlawful dispossession or disturbance of possession.

Liability Law: Egyptian civil law contains provisions regarding liability for damages caused by unlawful acts or breaches of contract. Anyone who causes harm to another person through their actions (whether negligently or intentionally) is liable for the damage.

Fault Liability: One of the most common types of liability in civil law is fault liability, where the wrongdoer is held responsible for the damage if they acted negligently or intentionally.

Strict Liability: In certain cases, such as when using dangerous machines or engaging in risky activities, the operator may be held liable regardless of fault.

Family Law: Egyptian family law is influenced by both civil law and Islamic law. It regulates marriages, divorces, child custody, and alimony, and is crucial for regulating family relationships.

Marriage: Marriage is treated as a contract under Egyptian civil law. There are both legal provisions for marriages between Egyptians and marriages between Egyptians and foreigners. A marriage must be officially registered.

Divorce: Egyptian law provides different regulations for divorce, depending on religious rules. Divorce can be initiated by either the husband or the wife, with different conditions and procedures.

Child Custody: In the case of a divorce, custody of the children is granted either to the mother or the father, with the child's best interests being the priority.

Inheritance Law: Egyptian inheritance law is based on the principles of Islamic Sharia, and the distribution of inheritance is governed by fixed rules. However, there are also provisions in the Egyptian Civil Code that regulate inheritance claims.

Legal Inheritance: The distribution of inheritance follows the shares defined by Sharia, with heirs such as children, spouses, and parents receiving a fixed portion. Certain individuals, such as the spouse, are entitled to specific shares of the inheritance.

Wills: A testator may dispose of a portion of their property according to their will, but only up to one-third of their estate. The remainder is distributed according to the legal inheritance shares.

Community of Heirs: If there are multiple heirs, they form a community of heirs, which is responsible for managing the inherited property until an agreement on the distribution is reached.

Limitation Periods and Deadlines: Egyptian civil law also governs the limitation periods for claims. Depending on the type of claim, the limitation period ranges from 5 to 15 years. Different limitation periods apply for claims arising from contracts, torts, and the enforcement of inheritance claims.

Egyptian Civil Procedure

In Egyptian civil law, there are also specific procedures for enforcing claims that are dealt with in civil courts. The civil courts decide on contracts, claims for damages, inheritances, and family law disputes.

Civil Procedure: A civil lawsuit in Egypt follows a certain procedure, which includes filing a claim, gathering evidence, issuing a judgment, and the possibility of an appeal. The plaintiff must support their claim with evidence and arguments.

Enforcement of Judgments: If a court rules in favor of the plaintiff, the judgment can be enforced by the enforcement authorities, for example, by seizing the defendant's assets.

Consultation in Egyptian Civil Law

Egyptian civil law covers a wide range of topics that are of great importance for businesses and individuals. If you are doing business in Egypt, entering into contracts, or dealing with family or inheritance matters, it is essential to familiarize yourself with the relevant provisions of civil law.

As a specialized lawyer in Egyptian civil law, I am available for legal consultation and support in the areas of contract law, property law, liability law, inheritance law, and family law. I help you minimize legal risks, avoid conflicts, and ensure that your legal interests are optimally represented in Egypt.

Egyptian family and inheritance law is based on both civil law and the principles of Islamic law (Sharia), particularly in the area of inheritance law. Family law is thus heavily influenced by religious regulations, while inheritance law in Egypt is shaped by both Sharia and civil law provisions. This makes Egyptian family and inheritance law a very complex field, where both religious and secular norms must be considered.

Egyptian Family Law

Egyptian family law includes regulations regarding marriage, divorce, child custody, alimony, and other aspects of family life. It contains both civil law provisions and regulations derived from Islamic law. The influence of Sharia is particularly noticeable in relation to marriage and divorce, while child custody and alimony are also governed by civil law provisions.

Marriage in Egyptian Family Law

Marriage is a civil contract that fulfills both religious and state requirements. Egypt recognizes various religious marriages, but the general civil law governs the civil aspects of marriage.

Marriage Eligibility Requirements: To marry in Egypt, both parties must be of legal age (at least 18 years old) and not closely related. A marriage between a Muslim and a non-Muslim is also possible under certain conditions, with Muslims being preferred in cases of marriage to non-Muslims.

Marriage Contract (Mahr): In Islamic marriage, a Mahr (dowry) must be paid by the husband to the wife. The amount of this gift is agreed upon freely and must be determined before the wedding. It is a central component of the marriage and can consist of money or other assets.

Marriage Agreement: In addition to the Mahr, a marriage contract can be established to regulate certain rights and duties of the spouses, such as property and financial matters.

Divorce

Divorce in Egyptian family law is governed by both civil law and Islamic principles, with Islamic Sharia having a significant influence here.

Divorce by the Husband (Talaq): The husband can unilaterally pronounce divorce by saying the word “Talaq” (divorce) three times. This form of divorce is legally very simple for men but leads to certain legal consequences, such as the wife’s entitlement to alimony during the "Idda" period (waiting period).

Divorce by the Wife (Khula): A woman can also request a divorce but often needs to approach the court. In a "Khula" procedure, the wife may request a divorce by paying compensation to the husband (usually the Mahr or other agreements).

Judicial Divorce: In cases of adultery or domestic violence, the Egyptian court can also pronounce a divorce. The decision is made in accordance with both general civil and Islamic law provisions.

Child Custody

Child custody is regulated in the case of a divorce, with both the child's well-being and legal provisions taken into consideration.

For Male Children: In the case of divorce, the father typically retains custody when the son reaches the age of 7. Until this age, the mother retains custody.

For Female Children: Female children typically remain with the mother until they reach adulthood (usually around 15 years old). However, in some cases, the court may make a different decision if it is in the best interest of the child.

Alimony: After divorce, the father is generally responsible for providing financial support for the children. This alimony covers basic needs as well as additional expenses.

Egyptian Inheritance Law

Egyptian inheritance law is largely based on the principles of Sharia (Islamic law), which contains clear rules for distributing the estate of a deceased person. However, there are also civil law provisions that complement the Sharia. Inheritance law is therefore complex and often requires detailed legal consultation, especially in cross-border cases or when dealing with estates governed by wills.

Legal Inheritance (According to Sharia)

Egyptian inheritance law is largely based on Sharia provisions, regulating how the deceased's estate is divided among the heirs. The main heirs are the spouse, children, parents, and siblings.

Spouse: The surviving spouse is entitled to a share of the inheritance. A widower receives a quarter of the estate, while a widow receives an eighth. These shares may vary if the deceased has children.

Children: Children inherit a fixed share, with sons generally inheriting twice as much as daughters. A son therefore receives twice the inheritance of a daughter.

Parents: The father and mother of the deceased are also entitled to a share of the inheritance, unless the deceased has children. The mother typically receives one-third of the inheritance, and the father receives the remaining portion.

Other Relatives: If no direct heirs such as children or parents are available, other relatives such as siblings, uncles, aunts, and distant relatives may inherit.

Wills and Testamentary Provisions

Inheritance law in Egypt allows a testator to write a will, but under certain restrictions:

Testamentary Dispositions: A testator may freely dispose of up to one-third of their estate. The remainder of the estate is distributed according to the fixed shares of Sharia among the legal heirs. This provision is mandatory for Muslims.

Non-Muslim Testators: For non-Muslims, different provisions apply, allowing them to freely bequeath their entire estate, as is common in many Western legal systems.

Community of Heirs

When multiple heirs are present, they form an heir community, which jointly manages and divides the inheritance. In this case, an agreement among the heirs is necessary to fairly divide the estate. If no agreement is reached, the inheritance can be divided by the court.

Inheritance According to Islamic Principles

Egyptian law stipulates that the inheritance shares be calculated based on Sharia principles, but there are also exceptions. In many cases, heirs may apply to the court for an alternative division of the estate, particularly if the Sharia provisions are deemed unjust or impractical.

Consultation in Egyptian Family and Inheritance Law

Egyptian family and inheritance law is complex and often requires detailed legal consultation to ensure that the interests of the parties are preserved and all legal requirements are met. As a specialist in Egyptian family and inheritance law, I am here to assist you in drafting marriage contracts, resolving custody matters, handling divorces, or managing inheritances.

I also help with the creation of wills, estate divisions, and the enforcement of inheritance claims, especially in international contexts. This way, you can ensure that your family and inheritance matters are legally secure in Egypt.

Whether you are a foreigner wishing to acquire land or property in Egypt, or an Egyptian citizen looking to buy, sell, or inherit property, it is crucial to be familiar with the legal framework and specific characteristics of the Egyptian real estate market to avoid legal uncertainties and issues.

Key Topics in Egyptian Real Estate Law:

Acquisition of Property by Foreigners:

Foreigners can generally acquire property in Egypt, but under certain conditions. The purchase of land, particularly in specific geographical areas, is restricted for foreigners. Typically, foreigners can only acquire property in designated development zones or urban areas such as Cairo or Alexandria. Additionally, in many cases, the acquisition is limited to a maximum area of 400 square meters. Foreign buyers also require a special permit from the Egyptian Ministry of the Interior.

Land Registry and Proof of Ownership:

In Egypt, the acquisition of property must be registered in the state land registry to legally secure ownership rights. This process can take some time and requires the submission of relevant documents, such as the purchase contract, identification proofs, and in some cases, permits. Proof of ownership is established through the “Title Deed,” which confirms the property ownership and documents the registration in the land registry.

Contract Law and Purchase Agreement:

A written purchase agreement is essential to make the acquisition of property legally binding. The agreement should clearly outline the price, payment terms, and the timing of the property transfer. It is advisable for the contract to be drafted in both Arabic and another language (e.g., English or German) to avoid misunderstandings. Additionally, the contract should be notarized.

Rental Law:

Egypt has specific regulations governing lease agreements. Lease contracts can be established for various periods, and both tenants and landlords have rights and obligations. There are regulations regarding rent pricing, termination of lease agreements, and the condition of rental properties. Lease agreements should be in writing, and it is advisable to seek legal advice to avoid potential conflicts.

Inheritance and Real Estate:

When it comes to the inheritance of real estate, Egyptian inheritance law is relevant. Egyptian inheritance law is based on Islamic law, meaning that the distribution of the estate among heirs follows specific rules. These rules can be particularly complex for foreign heirs, so it is important to be informed about the legal requirements and procedures for transferring property in the event of inheritance.

Taxes in Real Estate:

There are various taxes to consider when acquiring and using property in Egypt. These include the property transfer tax, annual property tax, and potential tax liabilities when selling property. In some cases, foreign investors may benefit from tax advantages or special regulations.

Legal Advice in Egyptian Real Estate Law:

To ensure compliance with all legal requirements and to avoid potential pitfalls, it is advisable to seek legal counsel early on. As a specialized lawyer in Egyptian real estate law, I, Mohamed Saad, offer comprehensive legal advice and support, both for investments in Egyptian real estate and for legal matters related to ownership, purchase, sale, rental, and inheritance of property in Egypt.

As an experienced lawyer in Egypt, I can provide tailored legal advice and assistance in these and other fields of Egyptian law, ensuring that your interests are protected. Whether you're dealing with business transactions, personal matters, regulatory compliance, or resolving disputes, I can help guide you through the complex legal landscape of Egypt.

Please feel free to reach out if you need more information or have specific legal concerns.

This is a general overview of various areas of Egyptian law. If you have a particular legal issue in any of these fields or need assistance with a specific matter, I’d be happy to provide more in-depth guidance.