Article (172) of the Companies Law stipulates that the Executive Regulations shall specify the provisions applicable to branches of foreign companies and their equivalents in the event of the liquidation of the foreign companies, or the cessation of the branch's activity in Egypt. Despite this text, the Executive Regulations did not include the provisions to be followed in the event of the liquidation of foreign companies and its impact on their branches in Egypt, nor did they indicate the procedures to be followed in the event the branch ceases its activity within Egypt.
Given this, the general rules in this regard must be applied, which are that in the event of the liquidation of the foreign company for any reason, the branch is immediately obligated to notify the competent administrative authority and take procedures to liquidate and close the branch. The administrative authority also has the right to do so if it comes to its knowledge that the foreign company to which the branch belongs is being liquidated.
The provisions for the liquidation of the company stipulated in the Companies Law and detailed in Articles 137 to 154 are followed in the event of the liquidation of the branch as a prelude to its final closure and annotating this in the Commercial Register.
If the foreign company decides to cease the branch's activity within Egypt, it must notify the competent administrative authority of this and take the liquidation procedures applicable to companies in general, as stipulated in the Companies Law and referred to previously.