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Egypt - Apply for a Microfinance Bank License

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ProcedureEdit

Apply In-Person:

  1. To apply for a microfinance bank license in Egypt, approach the Egyptian Financial Supervisory Authority (EFSA) for a preliminary meeting to discuss about the license requirements.
  2. The applicant is recommended to propose and book, in descending order of preference, at least three business names with the commercial Registrar of Companies and Business Names and submit them to the Central Bank of Egypt in descending order of preference accompanied by a brief concept paper on the proposed Micro finance Bank, including evidence of sources and availability of capital.
  3. Fill up and submit the application form [Form 1 of the First Schedule to the Microfinance (Deposit Taking Microfinance Institutions) Regulations 2014 Law 141] to Central Bank of Egypt accompanied by all supporting documents.
  4. Refer to the “Required documents” section for more information.
  5. Pay a non-refundable application fee of LE 3,000 to the Egyptian Financial Supervisory Authority (EFSA).
  6. The applicant now needs to provide an evidence of minimum core capital which should be reflected in a bank statement of a National bank.
  7. The promoters/shareholders should give the Egyptian Financial Supervisory Authority (EFSA) to verify the authenticity of the bank statement directly from the bank.
  8. The promoters/shareholders should provide the distribution or allocation (ultimate beneficiaries, citizenship, amount and percentage) of core capital to each individual promoter/shareholder and/or company, indicating significant shareholders/promoters (owning at least 10% of the share capital).
  9. Certified statements indicating that the entity and each of the shareholders and officers are tax compliant. The current Tax Compliant Certificate should be provided.
  10. The applicant needs to prepare and submit a comprehensive feasibility study and business plan.
  11. The applicant have to duly complete and submit the Fit and Proper Forms for all significant shareholders (at least 10% shareholding) and proposed directors accompanied by supporting documentation (certified).
  12. The applicant needs to duly fill up and submit the Fit and Proper Forms for all significant shareholders (at least 10% shareholding) and proposed directors accompanied by supporting documentation (certified) including:-


For individual natural persons

  1. Curriculum Vitae and certified copies of academic and professional certificates.
  2. Evidence and disclosure of the source of funds e.g. certified copies of bank statements, fixed deposits and/or government securities.
  3. Certified copies of National Identity Card and Personal Identification Number (PIN) certificate.
  4. Total number and the percentage of shares to be acquired and evidence of the consideration given or to be given for the same.
  5. Four recent colour passport size photographs, of which at least one must be certified.
  6. Names of three independent referees who have known the proposed shareholder/officer for at least 5 years, giving detailed contacts including postal addresses, e-mail and telephone numbers.
  7. A recent (i.e. not more than three months since issuance) credit report from a licensed credit reference bureau.
  8. A declaration witnessed by an advocate indicating that none of the funds the shareholder seeks to invest are from proceeds of crime as required in Section 4.6 (a) of the Application Form (Significant shareholders)
  9. An affidavit that none of the proposed directors or significant shareholders holds or owns a similar position in any other microfinance bank in Egypt (Directors) under the Microfinance Act.


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Required DocumentsEdit

  • Certified copy of the Certificate of Incorporation.
  • Certified copy of the tax Personal Identification Number (PIN) certificate.
  • Certified copy of the registered Memorandum and Articles of Association indicating core capital
  • Verified official notification of the company’s registered place of business, including the prospective places of business (Head Office, branches, agency and outlets, if any)
  • A declaration witnessed by an advocate or Commissioner of Oaths indicating that the proposed entity has no existing scheme of arrangement with its creditors.
  • Pre-application phase
  • Written application requesting to open blocked subscription account indicating the name of the bank(s)/branch(es).
  • Evidence of registration of trade name from Ministry of Trade and/or Regional Trade Bureau.
  • Duly completed application form, as specified under Attachments I and II of these Directives, for organizers and project manager.
  • Signed minutes of first meeting of organizers along with attendance sheet.
  • Submission of prospectus, which is a printed statement that describes and forecasts the course or nature of the company along with expected risks, to be distributed to prospective investors.
  • Evidences of payment of investigation fee.
  • Properly completed propriety test questionnaire, as specified under Attachment III of these Directives, for organizers and project manager.



Office Locations & ContactsEdit

Egyptian Financial Supervisory Authority (EFSA)
Smart village, building no. 136B
Kilo 28 Egypt – Alexandria road
Giza province
P.O box 110
TEL : 35345350
FAX : 35370037
Contact link: Link

EligibilityEdit

  • A Micro finance bank may be established by any eligible corporate body or corporation duly licensed by the Egyptian Financial Supervisory Authority (EFSA) to Receive Deposits and pay cash to customers of the bank.
  • A Microfinance Bank applicant must be of an Egyptian Nationality.
  • All Individuals or companies registered for Bank Business in Egypt with the commercial registrar of Companies.


FeesEdit

  • The fees for Microfinance bank license is LE 3,000


ValidityEdit

Explain the time until which the certificate/document is valid.
e.g. Birth Certificate Valid Forever


Documents to UseEdit

Please attach documents that can be used by people. e.g. links


Sample DocumentsEdit

Please attach sample completed documents that would help other people.


Processing TimeEdit

Please explain processing time taken in obtaining the document/certificate.


Related VideosEdit

Videos explaining the procedure or to fill the applications.
Attach videos using the following tag <&video type='website'>video ID|width|height<&/video&> from external websites.
Please remove the '&' inside the tags during implementation.
Website = allocine, blip, dailymotion, facebook, gametrailers, googlevideo, html5, metacafe, myspace, revver,
sevenload, viddler, vimeo, youku, youtube
width = 560, height = 340, Video ID = Can be obtained from the URL of webpage where the video is displayed.
e.g In the following url 'http://www.youtube.com/watch?v=Y0US7oR_t3M' Video ID is 'Y0US7oR_t3M'.


InstructionsEdit

  • The proposed name must incorporate the words Micro finance Bank e.g. XYZ Microfinance Bank Limited.
  • The name approval is valid for 12 months from the date it is granted by the Egyptian Financial Supervisory Authority (EFSA) within which you should have received a licence to carry out microfinance bank business.


Required InformationEdit

A list which displays the kind of information which is required to complete the procedure.
e.g.
1. Date of Birth.
2. City or Country of Birth.



Need for the DocumentEdit

  • The need of Microfinance bank license arises as it provides financial assistance to enterprises that cannot place collateral.


Information which might helpEdit

Enter other information which might help.


Other uses of the Document/CertificateEdit

Please explain what are other uses of obtaining this document/certificate.
e.g. Birth Certificate can be used as proof of identity.


External LinksEdit

Place some external links which might help.


OthersEdit

More information which might help people.


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