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their effectiveness through staff training programs in Egypt and
abroad. Foreign companies also train and support Egyptian
staff via short-term, including through periodic visits by
marketing specialists and technical support staff from company
headquarters.
Many retailers of consumer goods tend to import their own
supplies directly rather than pay high markups to wholesalers.
A corollary is that many Egyptians prefer getting quotes
directly from the overseas supplier rather than from the local
agent on the theory that the price will be better. This habit
suggests that U.S. principals be sensitive to the role and
presumed cost of their Egyptian agents. One way to strengthen
that role is to refer customer inquiries back to the Egyptian
agent or to a regional representative outside Egypt.
The following stipulations relate to agents and importers:
• In the structure of sole proprietorship, the agent/importer
must have Egyptian nationality. Fifty-one percent of the
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• Public sector firms can be agents, as can private firms and
individuals.
• Distributor-type companies with partial foreign ownership
can market goods, including imported goods, in the
following circumstances.
• General Partnership Companies or Limited Partnership
Companies: In these types of companies, there may be a
foreign partner, provided that the Egyptian partner(s) have
at least 51% of the capital and the General Manager or
head of the company is an Egyptian national.
• Limited Liability Company: A foreign partner in this type of
distributorship company faces no limit on the percentage
of ownership, provided that at least one manager of the
company is an Egyptian national (there can be one or more
managers depending upon the articles of incorporation),
there are at least two shareholders or partners, and the
capital of the company is not less than LE 2,000,000
(approximately USD 116,279).
• Joint Stock Company: Provided that at least 51 percent of
the shares are offered to Egyptians upon formation, foreign
shareholders ultimately can own up to 100 percent of the
company, provided that a majority of the Board of Directors
is Egyptian, the capital of the company is not less than LE
5,000,000 (approximately USD 290,697) and there are at
least three shareholders. A distributorship company of this
type may not import or act as a commercial agent unless it
is 51 percent Egyptian owned and managed.
Foreign firms that form a distributorship as mentioned above
often permit the Egyptian partners to form a separate company
to act as "importer" or agent. The latter delivers the goods to
the distributorship company for marketing within Egypt.
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