Foreign NGO Registration In Egypt | Law 149 Of 2019 Requirements

Guide for Foreign Non-Profit Organisation Establishment in Egypt

In light of the growing role of international civil society and the enhancing contribution of foreign non-profit organisations to sustainable development, relief, and capacity building, Egyptian lawmakers have been keen to establish a precise legal framework regulating the establishment and presence of these entities in the State. This framework balances support for humanitarian and development efforts on the one hand with the preservation of national sovereignty and ensuring legislative and regulatory compliance on the other.

The establishment of foreign non-profit organisations in Egypt is a legal process regulated by a set of specific rules and procedures. It differs in nature from the establishment of local entities and is subject to the supervision of specific administrative and regulatory bodies, primarily the Ministry of Social Solidarity, in accordance with the provisions of Law 149 of 2019 on Regulation of Civil Society Activities ("Law"), its Executive Regulations issued pursuant to Resolution 104 of 2021, and its supplementary resolutions.

Therefore, thorough knowledge of the legal framework governing registration and operation, and understanding the formal and substantive requirements for establishment, are essential to ensuring that foreign civil society activities in Egypt are conducted lawfully and stably. This also helps to avoid the legal risks that may arise from violating the regulations governing this area. This Article focuses on the essential legal aspects of foreign non-profit organisations' establishment in Egypt, outlining the key procedures and requirements governing the registration and operation process.

5. Legal and Legislative Framework governing the operations of foreign non-profit organisations in Egypt:

The lawmakers assigned the regulation of foreign non-profit organisations' establishment in Egypt to Law 149 of 2019 on the Regulation of Civil Society Activities ("Law") and the Executive Regulations issued pursuant to Resolution 104 of 2021.

This legislative framework aims to regulate the entry of foreign organisations into the civil society sector and ensure that activities are consistent with the State's priorities and development plans, while subjecting them to a specific supervisory and administrative system.

5. Foreign non-profit organisations: These are non-profit legal entities whose main administrative centre is located in Egypt or abroad, and which are authorised to engage in one or more activities of civil associations or institutions subject to the provisions of the Law.

Examples of such activities include: Social and developmental activities – Health activities – Educational and cultural activities – Non-profit economic and developmental activities – Environmental activities – Human rights and humanitarian activities – Scientific and research activities – Sports and youth activities.

5. Administrative Authorities Competent to Receive Applications for establishment and approval issuance:

1. Ministry of Social Solidarity, represented by the Central Administration for Foreign Non-Governmental Organisations and Associations.

2. The Ministry of Foreign Affairs, represented by the Department of Foreign Organisations.

These authorities are responsible for receiving, examining, and reviewing applications for the establishment or registration of foreign non-profit organisations, issuing the necessary approvals, and monitoring these organisations' compliance with the Law and regulations.

5. Basic Requirements for Obtaining a Licence for the Establishment of Foreign Non-profit Organisations in Egypt:

Several essential requirements shall be met to establish a foreign non-profit organisation in Egypt, the most important of which are:

1. The main requirement for foreign non-profit organisations to operate in Egypt is to obtain a permit from the ministry responsible for associations and civil society (the Ministry of Social Solidarity), as well as the approval of the relevant authorities.

2. The activities of foreign non-governmental organisations shall comply with the priorities and requirements of Egyptian society, in accordance with the State's plans and development requirements.

3. The activities of the foreign non-governmental organisation shall be non-profit in nature.

4. The organisation shall not engage in, or finance activities that fall within the scope of political or religious parties, professional unions, or labour unions, or that harm the national security of the State, public order, public morals, or public health, or that incite discrimination, hatred, or strife.

5. The organisation shall adhere to financial and administrative transparency, whereby funds are spent in a manner that achieves the objectives and complies with the rules governing the activity authorised to be practised in Egypt.

5. Procedural Requirements and Documents Required for Foreign Non-profit Organisations in Egypt:

Step 1:

Foreign non-governmental organisations shall submit an application to the Ministry of Foreign Affairs, in the form prepared for this purpose. The application shall be certified by the Egyptian embassy in the foreign organisation's country of origin.

The application shall be accompanied by the following information:

• Main information required from the parent foreign organisation:

1. The organization's legal licence to operate in its home country shall be submitted. The organization shall have in place official regulations governing the organization's statutes.

2. Details of the organisation's board members (names, nationalities, and dates of joining the organisation).

• Main information required from the applicant non-profit organisation:

1. An official copy of the organisation's articles of association.

2. A statement of activities, sources of funding, programmes, protocols, memoranda of understanding, and other forms of cooperation, including names and projects on Egyptian territory, in the form prepared for that purpose.

3. An official certificate confirming that the organization is registered and operates legally in its home country.

4. A statement from the organisation's legal representative confirming that the organisation is not included on any international, regional or local terrorism lists.

5. Proof of the criminal integrity of the founding members and the board of directors.

(Egyptians shall submit a criminal record, while foreigners shall submit declarations stating no criminal record.)

6. The treaty or agreement on which it relies in requesting to operate in Egypt (if any).

7. Official website (if any).

• Key information required regarding the activities the organisation wishes to carry out in Egypt:

1. Detailed description of the activities that the organisation wishes to carry out in Egypt.

2. The geographical scope of the organisation's activity in Egypt.

3. Proposed term of the activity in Egypt.

4. Proposed financial allocation to carry out the activity in Egypt.

5. Sources of funding for the proposed activity to be carried out in Egypt.

• A statement of the entity to which the funds left by the organisation after the expiry or cancellation of the permit accrue, either to one of the Egyptian entities specified by the organisation or to the fund supporting the projects of civil associations and institutions.

Step 2:

Following submission of the aforementioned documents to the Ministry of Foreign Affairs and review by the relevant authority, letters are sent from the Ministry of Foreign Affairs to the competent authorities requesting review of the documents and approval for the establishment of a branch of the foreign non-profit organisation in Egypt, as well as security clearances of the foreigners mentioned in the regulations.

Step 3:

After obtaining security clearances and approvals from the relevant authorities, which vary depending on the activities to be carried out in Egypt, a letter is sent to the Ministry of Social Solidarity requesting approval to establish a branch of the foreign non-profit organisation in Egypt.

Step 4:

After obtaining approval from the Ministry of Social Solidarity to open the branch, the legal representative of the organisation shall pay a fee of EGP 50,000, payable in US dollars or euros at the equivalent exchange rate. This fee shall be paid upon initial registration and upon each renewal.

5. Financial and Administrative Obligations in Foreign Non-profit Organisations in Egypt:

Foreign non-governmental organisations authorised to operate in Egypt are subject to financial and administrative oversight by the relevant administrative authority. They are required to comply with the following requirements and submit the following documents to the administrative authority:

1. Opening certified bank accounts in Egypt and notifying the administrative authority of the bank account number and sub-accounts for receiving funds or spending on activities in Egypt. The organisation may only receive funds or spend through these accounts and acknowledges the administrative authority's right to access them as necessary.

2. Notifying the competent administrative authority of the sources of funding and areas of expenditure.

3. A periodic progress report during the period of the authorised activity, specifying its vision as stated in the applicable permit.

4. Submission of the annual budget approved by a registered chartered accountant.

5. Any reports, statements, or information as requested by the administrative authority concerning the work of the organisation or any of its activities.

5. Legal penalties on Foreign Non-profit Organisations in the event of legal violations:

In the event of a violation of the provisions of the law or the rules governing the authorised activities by foreign non-profit organisations, the competent minister may issue a reasoned decision on the activity suspension or permit revocation.

The licence shall also be revoked in the event of offences that threaten national security or public safety, or disturb public order, or in accordance with the principle of reciprocity.

5. Revocation of permits issued to foreign non-profit organisations to operate in Egypt:

The organisation may submit an application to the competent administrative authority to revoke the permit issued to it to operate in Egypt before expiry. The application shall be accompanied by the following documents:

1. Justifications for applying for revocation of the permit.

2. The organisation's financial and technical reports for the period during which it carried out its authorised activities.

3. The latest budget approved by a certified public accountant.

4. Any other documents or information as requested by the competent department.

The competent minister, after obtaining the approval of the relevant authorities, issues a decision to revoke the permit, including the liquidation of the organisation's activities within thirty working days from the application submission date.

In conclusion, the establishment of foreign non-profit organisations in Egypt is a precise legal process that requires strict compliance with the legislative and procedural framework governing civil society work. This ensures the lawful establishment, safe operation, and sustainability of activities in Egypt. A deep understanding of legal requirements and proper interaction with the relevant authorities are crucial to avoiding legal risks and ensuring that activities are conducted within a stable and secure legal framework.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.