Business 267business in Egypt. Payment of bribes is illegal under many
foreign laws. In higher level negotiations, certainly direct
payment of a cash supplement to an offi cial would seem
inappropriate in Egypt as well as elsewhere. It would not,
however, seem inappropriate to engage someone (or their
son or brother, etc.) who has a separate business (but is also
in an infl uential position) as a consultant or agent on your
project by Egyptian standards.
On a more pragmatic level, sometimes a little baksheesh
can assist getting a needed signature in a timely fashion. One
situation I observed related to the need for a police report
for purposes of an insurance claim on goods stolen from a
hotel room. The question of retrieving the goods was never
a real issue since it was assumed that they were long gone.
Rather than calling the police at the time of the alleged theft
(which would have involved all kinds of hassles, inquiries
and searches), the person was advised that ‘it would be
easier’ to wait until later and simply get a police report in
another city, for a cost of E£ 20. Indeed, it took about an
hour, several weeks later, to acquire an appropriate police
report for insurance purposes. There was no delay and no
hassle, and everyone left satisfi ed (except, of course, for the
fact that the goods were still missing).
Setting Up a Business
Several types of business organisations exist in Egypt,
generally in the form of incorporated companies, partnerships
and sole proprietorships. Foreigners are rarely interested in
the unincorporated forms used by Egyptian traders.
Most foreign investors choose the Limited Liability
Company, known as a WLL (with limited liability). The
Joint Stock Company (Shareholder Company) is the most
commonly used form of corporate business entity in Egypt.
Foreign investors may carry on business in Egypt through
a branch offi ce. However, this provides no tax advantage.
Companies whose sole interest is the exportation of goods
to Egypt must generally appoint a local agent who must be
an Egyptian national or company. Labour requirements apply
to all companies whose capital exceeds E£ 50,000.