A comprehensive guide to managing civil society organizations in Egypt under Law No. 149 of 2019.

Government efforts in the country seek to achieve social development through solidarity and partnership between government efforts and individuals to achieve a fair level of well-being and stability for members of society. The law allows individuals or organizations, whether governmental or non-governmental, Egyptian or non-Egyptian, to establish civil society organizations that work to alleviate and reduce social problems, whether in health, education, or the provision of food, shelter, or clothing, in a manner that achieves sustainable development in society. Egyptian law has established conditions and controls to which these organizations or associations must adhere, pursuant to Law No. 149 of 2019 and Resolution No. 104 of 2021 issuing the executive regulations of the Law Regulating the Practice of Civil Society Work.

A civil society organization (according to Article 1 of Law No. 149 of 2019) means:
Any organized group that aims to contribute to the development of the individual and society, meet their needs, and maximize their ability to participate in public life and sustainable development, without seeking profit. It is established in accordance with the provisions of the law and consists of a minimum of ten natural or legal persons, or both. Associations are established by notification submitted by the group of founders or their legal representative to the Central Unit for Associations and Civil Society or the relevant sub-unit. This notification is made on a specially prepared form. Other documents required include payment of a fee of EGP 1,000 for registration of the association's bylaws in the relevant register, proof of legal residency for non-Egyptians, and a code of conduct for the association's employees.

To establish an association, it must have a suitable headquarters to manage its activities in Egypt. For a headquarters to be considered suitable, the following conditions must be met (in accordance with Article 15 of the Executive Regulations of Resolution No. 104 of 2021):

1. It must have an appropriate entrance that allows unhindered entry.

2. The headquarters must not be designated for any activities other than those for civil society activities subject to the provisions of the law and these regulations.

3. At least one room must be designated as a headquarters for the association's management if other civil society activities are authorized to be conducted within the same headquarters designated for the association's management.

Non-Egyptians with permanent or temporary legal residency in Egypt may be founders and members of the association or its board of directors, provided that their membership does not exceed 25% of the total membership. Approval for establishment shall be issued within 60 days from the date of receipt of the application, after the relevant authorities have reviewed the foreigners' names and information, and after taking into account the conditions for founding membership stipulated in the law and the executive regulations. Membership of foreigners in the association shall expire upon the expiration of their legal residency period. Founders shall be responsible for the association's expenses and obligations. If the association's bylaws are registered, they may reimburse the expenses approved by the general assembly after they have been approved by the association's board of directors. Reciprocity is required for foreign communities in Egypt. Article 17 of the Executive Regulations of Resolution No. 104 of 2021 stipulates:

Subject to the condition of reciprocity, the competent minister, after approval by the Ministry of Foreign Affairs and relevant authorities, may license any foreign community in Egypt to establish one association for each community to care for the affairs of its members. At least fifty members must apply for registration, taking into account the other conditions and procedures stipulated in the law and these regulations regarding the registration of associations and their operating system.

The ministry responsible for association affairs and civil work, in coordination with relevant state authorities, shall establish a database for all civil society institutions and associations, recording the association's activities, sources of funding, and other matters. The association shall have a unique number that can be used to inquire about it in this database. The database shall contain the following information:

1. The name of the civil society institutions subject to the law, and a list of the members of the board of directors, general assembly, founders, and board of trustees.

2. The scope of the institution's work, its activities, sources of funding, existing programs, geographical scope, and administrative center.

3- The association's bylaws, internal regulations, annual budget, a list of employees and their positions, a list of beneficiaries of civil society organizations' services, and a list of the organization's volunteers.

4- The cooperation protocol, memoranda of understanding, and any other forms of cooperation for foreign non-governmental organizations.

5- Any other information issued by a decision of the relevant minister. The minister must issue a decision specifying the method for securing the database, rules for maintaining the confidentiality of data and information, the employees dealing with the database, those with the right to access it, and the entities with which the database is linked.

Is it permissible for a natural or legal person to launch an initiative to implement a specific civil work activity for associations or institutions?
Article 22 of the Executive Regulations of Resolution No. 104 of 2021 stipulates that: Egyptian natural or legal persons, or both, may launch or implement an initiative or campaign to implement a specific civil work activity that associations are authorized to implement, pursuant to a permit issued by the unit head, after approval by the relevant authorities, within sixty working days from the date of submitting the permit application to the unit on the form prepared for this purpose, accompanied by the following documents:

(1) Name and information of the permit applicant:

Natural person (name – national ID number – job or profession – place of residence – criminal record – declaration of non-designation on terrorist lists).

Legal person:
Name of legal person and address of its headquarters.

Legal license under which it operates.
Information about the legal representative of the legal entity and its board members (name, national ID number, nationality, job or profession, place of residence, criminal record, and a declaration stating that the legal entity is not listed as a terrorist).
A declaration stating that the legal entity is not listed as a terrorist entity.
Official website (if any).
(2) The person responsible for the initiative or campaign, or the legal representative of either party, as applicable.

(3) Description of the initiative or activity to be implemented and its objective, provided that it is consistent with the authorized objectives and activities of associations.

(4) Amount and sources of funding.

(5) Geographic scope of the initiative or campaign.

(6) Identification of the target groups.

(7) The means by which the initiative or campaign will be advertised.

(8) Proposed project contract, cooperation protocol, or agreement to be signed by the parties involved in the initiative or campaign (if any).

(9) Implementation plan for the initiative or campaign.

(10) Determine the entity to which the remaining funds will be allocated after the initiative or campaign ends or is canceled, provided that the entity is subject to the provisions of the law and these regulations, and that its purposes are consistent with the objectives of the initiative or campaign. If no other entity is specified in the declaration issued for the initiative or campaign, or if the allocation to the entity stated in the declaration is not possible, the funds referred to in the fund will be allocated, subject to the approval of its board of directors.

In all cases, the implementation period may not exceed one calendar year, renewable upon the approval of the unit.

- The competent unit shall issue a letter addressed to a bank subject to the supervision of the Central Bank of Egypt in the name of the initiative or campaign to achieve its purpose only, provided that the funds are received through this account.

- The person responsible for the initiative or campaign shall provide the unit with all supporting documents and sources of funding for the campaign or initiative, supported by supporting documents and monthly bank account statements.

- In all cases, no activity may be undertaken without obtaining permission to implement the initiative or campaign from the head of the unit and the relevant entity if the activities require a license from another entity.

The unit may cancel the campaign or initiative in the event of a violation of the permit issued to them, after notifying the person responsible for it or its legal representative by means of a registered letter with acknowledgment of receipt, which must include a detailed statement of the violations attributed to the campaign or initiative and the failure of those in charge of the campaign or initiative to remedy these violations within the period specified by the campaign.

What are the purposes of civil society organizations and the scope of their rights and obligations?
- After acquiring legal personality, civil society organizations are entitled to engage in activities that achieve the purposes stipulated in their bylaws, taking into account the state's development plans and the needs of society.

- Associations may not engage in the activities stipulated in their bylaws without obtaining the necessary licenses from the relevant issuing authorities. The prohibition also applies to advertising activities at the organization's headquarters.

- However, associations may engage in other activities, provided that they are specified by a decision issued by the Prime Minister.

Article 28 of the Executive Regulations of Resolution No. 104 of 2021 stipulates that: Without prejudice to the prohibitions stipulated in Article (15) of the Law, associations may submit an application to the competent unit or sub-unit, as the case may be, using the prescribed form to conduct any activities in the border areas specified by a decision issued by the Prime Minister. The application must include the following data and documents:

The activity to be conducted and its purpose.

The duration of the activity.

The location of the activity.

The criminal record of those implementing the activity.

The sources and value of funding allocated to the activity.

Partnering entities (if any).

The unit head shall issue the license after obtaining the opinion of the competent governor and the approval of the relevant authorities within sixty working days from the date of submitting the application, which includes the aforementioned data and documents. The license shall include the authorized activity, the duration of the activity, the value and sources of funding, and the partnering entities (if any).

- The right of a board member to withdraw from the association's management:
Any member of the association's board of directors may withdraw from the board of directors at any time, provided they notify the board by registered letter with acknowledgment of receipt or by any other means stipulated in the association's bylaws. The withdrawing member may rescind their decision within 15 days from the date of notification to the association of their withdrawal; otherwise, they will be deemed to have withdrawn from the date of notification of withdrawal.

The association will then take steps to remove the member from the membership register and notify the relevant unit or sub-unit accordingly.

The association has the right to claim any financial dues, regardless of their nature, by registered letter with acknowledgment of receipt, specifying the nature and value of these funds and the mechanism for payment. In the event of non-payment, the association will take legal action to compel the withdrawing member to pay the amount owed.

Is it permissible for an association to join, affiliate with, or cooperate with another local association or organization to engage in an activity that does not conflict with its objectives?
- It is established that an association may join, affiliate with, participate in, or cooperate in any way with a local association, body, or organization to engage in an activity that does not conflict with its primary objectives. This must be done after obtaining the approval of the Board of Directors and notifying the relevant unit or sub-unit on the appropriate form, including the following information:

The name of the local association, body, or organization to which the association wishes to join or affiliate, and a statement of its primary and secondary activities.

The headquarters of the local association, body, or organization.

The primary activity or purpose of the association wishing to join.

The activity in which the association will join, affiliate, participate, or cooperate, and the extent to which this activity is related to the activities of the other local association, body, or organization.

A statement of the members of the board of directors of the local association, body, or organization.
The following conditions must be met for joining, affiliating, participating, or cooperating with a local entity:
A. There must be a tangible positive return from joining, affiliating, participating, or cooperating.

B. The local entity must have previous experience in the association's field of work.

C. The local entity must operate legally.

Is it permissible for an association to join, affiliate, or cooperate with another foreign association or organization to engage in an activity that does not conflict with its objectives?
Article 28 of the Executive Regulations of Resolution No. 104 of 2021 stipulates that: An association wishing to join, affiliate, participate, or cooperate with a foreign association, body, or organization to engage in a civil activity that does not conflict with its objectives, may, upon approval by its general assembly, submit an application to the unit using the form prepared for this purpose, accompanied by the following information and documents:

The bylaws of the association wishing to join.
A certified public accountant's budget for the association's most recent fiscal year.
Justifications for joining, affiliating, or participating, as applicable, along with a statement of the financial obligations involved.
The activity in which the association will join, affiliate, or participate and the extent to which it relates to its activities.
A statement of the organization, body, or association to which the association is to be affiliated or joined, including the following:
Primary and subsidiary activities.
The headquarters where the activity will be conducted.
The legal license for the association in its home country.
A statement of the members of the board of directors (names and nationalities of each).
The official website (if available).
The following conditions must be met for joining, affiliating, participating, or dealing with a foreign entity:

1. The entity must not engage in activities that threaten Egyptian national security.

2. The entity must not be listed as a terrorist entity internationally or locally.

3. There must be a tangible positive return from joining, affiliating, participating, or dealing.

4. The foreign entity must have previous experience in the association's field of work.

5. The foreign entity must operate legally.

The license shall be issued to the association by the unit head after approval by the relevant minister and relevant authorities within sixty days from the date of submitting the application, or within ten working days from the date the association submits evidence that the foreign association, body, or organization has previously obtained the approval of the Ministry of Foreign Affairs for the same project. This must be based on a report from the unit or sub-unit to which the association is affiliated, as the case may be, detailing the soundness of its financial and administrative status.

In all cases, the association may not take any action to join, affiliate, participate, or cooperate in the conduct of an activity with a foreign organization unless it has obtained the license.

The possibility of opening a branch of an association or civil institution outside the Arab Republic of Egypt:
- Associations or civil institutions registered in accordance with the provisions of the law may open branches outside Egypt, provided they submit an application to the unit, including the required information and documents, which include the following:

The association or civil institution's registration decision.

The bylaws.

A budget approved by a certified public accountant for the most recent fiscal year.

A statement of the activities it will undertake abroad, which must be consistent with the activities stated in the bylaws.

A statement of the budget allocated by the main office of the association's branch abroad.

Information on the association's representatives responsible for conducting activities abroad.

Any other information requested by the unit.

In all cases, an association or civil institution may not open a branch before obtaining the necessary licenses from the relevant minister, based on a report from the unit or sub-unit to which the association is affiliated, including the soundness of its financial and administrative status, and after approval by the relevant authorities.

The unit must provide the legal basis for its operations abroad, in accordance with the law of the country in which the branch is established, within 60 days of commencing its operations. This document must be certified by the Egyptian Ministry of Foreign Affairs. The unit must also notify the Ministry of Foreign Affairs, which will then notify the Egyptian Embassy or its representative in the country where the branch is established.

Do you wish to establish a civil society organization or manage an existing activity in accordance with Egyptian law?

Saadani & Partners Legal Services provides specialized consultations on establishing and managing civil society organizations in accordance with Law No. 149 of 2019 and its executive regulations. We guarantee that all legal requirements are met, from preparing the required documents to obtaining the necessary licenses. Whether you want to establish a new association, launch community initiatives, or collaborate with local and international organizations, our team of expert lawyers provides full legal support to ensure your compliance with the laws and achieve your development goals.