The NGO Law no. 149 of 2019 which had been in the works for several years, was issued last year but was missing it’s executive regulations, thus rendering it only conceptual. The Council of Ministers finally issued the executive regulations by virtue of its decree number 104 of 2021 published in the Egyptian Gazette.

The provisions of this regulation apply to foundations, central associations, entities operating for public interest, civil institutions, foreign non-governmental organizations, their branches, and representative offices. All previously mentioned entities must oblige by these executive regulations within 1 year of the law’s issuance.

In order for an NGO to be registered in the foundations database, they should obtain the necessary approvals from the competent authority and to notify such registration. 

The following requirements are necessary for compliance:

Foundations: 

• Must have a convenient location for the administration of their activities.
• 25% of the total number of members in a foundation or in its board of directors can be reserved for non-resident foreigners.
• May collaborate or merge with another entity exercising the same activities.
• Must open a bank account under the supervision of the Central Bank of Egypt in order to remunerate its activities except financial fluctuations reserves.
• Must comply with governance principles and must be transparent with the public.
• May receive donations in cash or in-kind donations from other entities. Such funds can be transferred from abroad upon permission of the competent minister.
• In case of a breach of the provisions of these regulations, the competent minister can suspend the foundation’s activity 30 working days after issuing a warning to reverse the penalty.

Civil Institutions: 

• Must be managed by the board of trustees concerning all matters except any modifications in its statutes.
• Must have a minimum capital of  EGP 20,000 to be established.
• May collaborate or merge with another entity exercising the same activities.
• Must only operate under the purposes of care and development of the Society.
• Can be dissolved by a decision of the members holding the majority of its capital.

Foreign Institutions: 

In case of a breach of the provisions of this regulation, the minister may suspend its activity or cancel the operational license, which will lead to complete dissolution of the institution after 30 days.

Central Foundations:

A branch of a central foundation or of a foundation operating in the public interest cannot modify its statutes unless it obtains the permission to do so from the board of directors of the parent foundation.

These provisions differentiate between central units and sub-units detailing the scope of work and management of each.

Said units are obliged to transfer and regulate the exchange of data concerning civil institutions to the competent authorities in order to combat criminal activities.

General Provisions:

• The “NGO Fund”, which is managed by nominated persons, shall provide the necessary financial assistance for these organizations to operate in Egypt.
• Regional, general and major associations exercise some remunerated activities and must implement their rules on the foundations that join them.
• Voluntary work has also been defined and detailed in this regulation.
• All relevant templates for all previously mentioned entities are detailed in this executive regulation.