Table of contents

I. Small Business Simulation: Mission Statement…………………………..1

II. The Entrepreneur and his characteristics………………………………….1

III. What is a Small Business?...........................................................................3

IV. Sources of business ideas………………………………………………….4

A. Internal environment…………………………………………………..4

B. External environment………………………………………………….4

V. The Business Plan…………………………………………………………5

A. Executive Summary…………………………………………………...5

B. Company Summary……………………………………………………5

C. Product/Service………………………………………………………..6

D. Market Analysis……………………………………………………….7

E. Strategy and Implementation…………………………………………7

F. Management…………………………………………………………..8

G. Financials ……………………………………………………………10

VI. The Art of Management …………………………………………………12

VII. Legal Affairs……………………………………………………………..15

VIII. A word from the moderators……………………………………………..21

Mohamed Eltaweel 2008 1

 Start your business, manage it, and share a slice of Egypt’s business pie. Small
Business Simulation is the guide that will show you the steps to start the most efficient,
effective, and profitable business in the Egyptian market.

Mission Statement: To enhance the entrepreneurial skills of participants which will

enable them to start up and manage a small business as a means to realize growth in the
Egyptian market.

What is an entrepreneur?

An entrepreneur is someone who perceives an opportunity and creates an

organization to pursue it. He is someone who creates a new business, willing to face risks
and uncertainty for the purpose of achieving profit and growth. An entrepreneur identifies
opportunities and assembles the necessary resources to capitalize on them. Managers are
usually more concerned with managing available resources, as for entrepreneurs they are
more capable of spotting and capitalizing on opportunities.

Characteristics of entrepreneurs:

Entrepreneurs have certain characters and personal attributes that will affect their career
and help them face challenges of the business, some of which are:

1. Focused: they focus on niche markets and put their efforts searching and possibly
creating demand that exists in the market. Businesses in general do not occur
unless there is a need for them, and so success in a given market relies heavily on
the principle of finding what is called a "vacuum" and filling this void. If an
entrepreneur is the first to offer the public a good or service then he has a real
chance to accumulate wealth and growth.

2. Fast: decisions in the world of entrepreneurs are made quickly and implemented
immediately. This of course requires extensive information on the market.

Mohamed Eltaweel 2008 2

 3. Flexible: entrepreneurs have to be open to change and be able to adapt to the
changing demands of customers and environment.

4. Forever innovating: they are tireless innovators as it is what keeps them going.
For example, IBM began in the wire and cable business and later expanded to
time clocks, there sales were a few million. After their successful mainframe
computer business and then their personal computer business they have been
constantly innovating. They are no longer entrepreneurs but they have
intrapreneurs in their organization who are responsible for opportunity seeking
and pursing.

5. Future Orientation: They have a vision/dream of what the future could be like for
them and their businesses.

6. Details: Desire for immediate feedback, entrepreneurs thrive for details about
their business. They like to be on top of the critical details.

7. Desire for responsibility: they want to be in charge of their own destiny rather
than dependent on an employer. They want to be in control of their resources and
use them to achieve self determined goals.

8. Doers: entrepreneurs operate in an ever changing, turbulent environment. Their

ability to handle uncertainty is critical because they constantly make decisions
using new and sometimes conflicting information from unfamiliar sometimes not
very credible sources. They must have a tolerance for ambiguity.

Businessmen VS Entrepreneurs

Mohamed Eltaweel 2008 3

 Very similar to the Investor but fundamentally different is the Businessman. He is
the one who sniffs the opportunities for making money. The difference between him and
the Investor is that these opportunities are not in the form of investments, but rather more
closely related to business operations. His focus is on market opportunity, striking the
right deals and employing the right Manager to run the operation. For example, a
Businessman will sniff out the fact that there are a lot of car owners in a particular estate
with are no car mechanics nearby. He will then approach an Investor to invest money to
start the car workshop and employ a Manager to run the operations. The Businessman
will drop by to ensure that the operation is addressing the opportunity and that the
operations are optimal. The difference between the Businessman and Manager is that the
Businessman looks at operations from a more macro perspective while the Manager
micro manages. The difference between the Businessman and Investor is that
Businessman sniffs the opportunities while the Investor decides whether or not to invest
in a particular deal.

On the other hand, entrepreneurs have a different attitude. Similar to the business
men, they would realize the demand for the car work shop and create a business to satisfy
that need in the market. However, entrepreneurs would do that differently. For example,
an entrepreneur would create a workshop that would have something similar to the
assembly line in which the customer’s car would pass on different stages were it would
receive full service in only fifteen minutes. Therefore, there business would be
characterized as innovative, time conserving, and attractive to customers.

What is a small business?

The definition of "small business" often varies by country and industry, but is
generally businesses that have less than 100 employees. These businesses are normally
privately owned corporations, partnerships, or sole proprietorships.

To start a small business, an entrepreneur needs to find a feasible business idea that
can be translated into reality.

Sources of New Business Ideas

Mohamed Eltaweel 2008 4

 To start a business one must have the proper paradigm that will enable him to
select the business that is most suitable to him and the environment around him. “There is
nothing new under the sun” is not what we mean by the proper paradigm, instead “there
is a lot new under the sun” is a necessary paradigm to have in order to start your search
for the business idea. Once one realizes that there are numerous ideas and business
opportunities, selecting the business idea comes from looking into the internal and
external environment.
Internal Environment

The internal Environment is one of two main sources of business ideas. We all
have ideas, skills, knowledge, passion, and experiences of our own. These can well be
sources of business ideas.
- Look in the mirror, know what you do well.
- Skill equals money. Bruce Lee started a kung fu school this is an example on how one
can capitalize on his skills.
- Experience that one may get form work, internships, and trainings can always be a
source of business ideas.
- Knowledge
- Passion can be a strong drive that can guide you to start and manage your business. If
you love it then giving it all you got must be a logical thing to do.

External Environment

The external environment is all that lies outside your business, it is an important
aspect that has a direct relationship with businesses. Looking at the external environment
is necessary when starting a business. For example, a manufacturer of clothing must
know where and how to find the natural resources needed to run the business? How much
does it cost? In addition, when starting a new business one must first study the market

Mohamed Eltaweel 2008 5

and observe the competitors in the field. Looking at the external environment would be
looking at points such as:
- Economy and GDP
- Laws and Regulations
- Natural Resources
- Exchange Rates (especially for businesses involved in exports and/or imports.)

Ideas alone do not make money but it is proper planning and implementation of
the idea that brings about profit and growth. Ideas that are written down on paper provide
a better ground to build on, as it better prepares you to start your own business.

Business Plan

A Business Plan is a defined proposal for doing or achieving a goal through a

number of steps. “I have no time to write a business plan” is a common misconception.
Business plans are important, they are usually written for objectives such as:

1. To provide a good basis upon which to negotiate finance. To bring investors to

join your business or to get a loan from a fund a business plan can show others
that you have done your homework.
2. It acts as a step-by-step explanation of how you intend to achieve your business
success.
3. Set out the business objective
4. When the objective should be achieved
5. Resources used to achieve the objectives

There is not one form of a Business plans as they can be written in different ways.
Nonetheless, it usually consists of 7 parts. These are:

1) Executive Summary: It is a brief summary of the business plan.

It may include:
a. Objectives: Of starting the business, short term and long term objectives
that the business is aiming for.
b. Mission: Mission statement and Vision
c. Keys to success: What will make the business successful ex. Location

2) Company Summary: It should explain what the company is all about.

It may include:
a. Company Ownership: Is it a sole proprietorship, partnership, or franchise?
If partnership, then how much percent belongs to whom of the partners. If
franchise, then who is the mother company.

Mohamed Eltaweel 2008 6

 b. Start up Summary: Explains the start up expenses, start up assets needed,
long term assets, funding, short term and long term liabilities.
c. Location/Facilities: The location of the main offices and branches.

3) Products/Services:
-What is it that you are selling?
-Why would it sell? Is there demand it? Is it unique?
-To whom and how will you sell it?
-Do you offer warranties or guarantees?
-Comparison with competitors
-Future growth: List your future growth plans

4) Market Analysis: you need to know the market inside out, there are many sub-
topics to this part in the business plan however they are all interlinked.

A. Market Segmentation: it is the division of the market into distinct

groups of customers. You need to segment the market in order to be able
to target potential customer.

B. Target Market Segment Strategy: it is the strategy chosen to reach a

specific group of customers (Target Market.)

i. Market Needs: what the market lacks and consumers needs, how
your business can satisfy the needs and wants of the consumers.

ii. Market Trends: it is the attitude of the market. For example

today in the Egyptian market opening up cafes is a trend that is
being noticed. In addition market trend could be studied with
regards to one product. In the coffee market, Turkish coffee has the
largest market share, however the instant coffee share is growing at
a much higher rate than the Turkish, and this is an example of the
market trend.

iii. Market Growth: how is the market performing? Is it in a

growing stage or in a recession period? Although a growing market
does not necessarily mean that your business will grow, however

Mohamed Eltaweel 2008 7

 market growth can have an indirect relationship with your
business.

C. Industry Analysis:
i. Industry Participants: know who is in the industry and know your
competitors size and power.

ii. Distribution channel: The series of firms that facilitate the

movement of the product from the producer to the final
consumer. Explain how the process goes. For example,
supermarket is a distribution channel, where you can buy bread
milk and meat going to one place instead of three.

iii. Competition and Buying Patterns: When and why the

consumers buy the competitors product? What makes them buy it?
How often does the consumer buy the product? (Product life
cycle). You need to know that in order to find your competitive
edge that will enable you to compete in the market.

iv. Main Competitors: Study the competition in the market, who

are they? What do they provide, for how much? How can your
business out compete them, what do you have to provide in order
to make your product sell more.

5) Strategy and Implementation: This is where the strategy of the organization

is stated. How the business is going to go about the marketing. The tools and
tactics you will use to maximize your profit.

A. Strategic planning: a decision process that matches an organizations

resources and capabilities to its market opportunities for long term growth

Mohamed Eltaweel 2008 8

 and survival. In other words it is the strategy a company uses to achieve
profit and growth.

B. Value Proposition: it sums up the value that will be realized if the

product or service is purchased. Ex, when consumers buy a laptop they
have to be able to value the benefit he gets out of it, (the level of
satisfaction he gets out of the product or service.)

C. Competitive advantage: to outperform the competition, thereby

providing customers with a benefit the competitors cannot. An example
could be a café that provides food and Wi-Fi, while others only provides
food. Then the competitive advantage the first café has is the Wi-Fi.

D. Marketing Strategy
i. Positioning Statements: how consumers position the product in
there mind. So that the image of the product, attracts the target
market.
ii. Pricing: in order to profit the price of the product must be more
than the costs. In addition pricing may also sends a signal about the
quality of the product. Some brands are a much more expensive
than others, it is not because they cost more to produce but it is to
reflect the image of he product. Example Lamborghini, prices their
cars at a high price, due to the good quality and mind you the
image you as a consumer have if you are driving a Lamborghini.
iii. Promotion: the activities marketers do to increase sale of their
product/services, and to encourage potential customers to buy
these products.

6) Management: This part should include the main points and an overall general view of
the management. That includes how many employees the company has, how many
managers, how many of the managers are founders. It is important to state whether your

Mohamed Eltaweel 2008 9

management team is complete or are there gaps that need to be filled. Moreover, job
descriptions should cover all the responsibilities set and assigned to the key members of
your managerial structure.

A. Organizational structure: The organizational structure is usually seen as an

organizational chart also known as an “org chart”, you can also just describe your
organizational structure in words without a chart. This part should include the
explanations of the job descriptions and how the main company functions are
divided. You should mention how the authority is distributed, do you have jobs
that have responsibilities but without responsibilities? Do you have resources to
cover your organization?

B. Management Background: The most important members of the management

should be listed. It should include their background experience which adds to
your business plan. Their functions within the company should be described.

C. Management Gaps: Management gaps may exist in any company but mostly in
start-up companies there are obvious gaps. These gaps should be mentioned and
addressed in the plan which is a sign of acknowledgment of your potential weak
spots in order to be fulfilled latter on. “It is far better to define and identify a
weakness than to pretend it doesn’t exist”.

D. Personnel plan: It is a table that includes your projected personnel costs,

including direct compensation and indirect costs. Indirect costs include vacation
pay, sick pay, insurance benefits, education, and payroll (salaries) taxes and other
costs. This is also called the “personnel burden” which is the cost over and above
the wages and salaries.
Here is an example of a personnel plan of a coffee kiosk and mobile service

Mohamed Eltaweel 2008 10

7. Financials:

A.Sales forecast: The sales forecast Is essential for the financial part of the
business plan. The initial demand for the first month should be estimated, from

Mohamed Eltaweel 2008 11

 that future resale can be predicted. The future resale is calculated by taking a
percentage of the initial demand and basing the sales of the rest of the year on it.

The forecast must have sound backing from the information which has been
described in the earlier parts of the business plan, such as the market size,
customer needs, customer segmentation, state of development of the market,
strengths and weaknesses of competitors, etc.

B. Break even analysis: The ultimate confirmation of the feasibility of the

business plan is the demonstration of the break-even point when sales revenue
first equals the sum of fixed and variable costs (initial investments).

Note that:

Fixed costs arise from regular payments, which are not affected by changes in the
level of sales. These include items such as rent, rates, and interest payments on
loans and administration costs.

Variable costs include payments, which change in relation to the level of sales
revenue. Examples of this include material costs and energy costs. The question
of whether labor costs are fixed or variable costs is one that must be answered in
terms of the nature of the business.

C. The Pro-Forma Balance Sheet: The balance sheet will be a statement of the
source of funds for the business in terms of loans, equity participation and
retained profit and how these have been allocated. The allocation of the funds will
be broken down according to investment in fixed assets of land and equipment,
and also current assets, which are defined as working capital. The current assets
refer to the stock of materials and completed manufactured goods and also cash
funds, which are held by the company. The balance sheet will also include the
company's current liabilities, which are money owed to creditors, bank overdraft
and tax liability

D. The Pro-Forma Profit and Loss Statement: The function of the profit and loss
statement is different to that of the balance sheet. While the latter will include a
reference to the retained profit of the company, it will only do this in the context
of a source of finance for the company and will not indicate how the profit arose.
The profit and loss statement is a tabulation of the gross sales income to the
company from which must be deducted all costs. For the purpose of the business
plan it will be necessary to prepare the first year's projected profit and loss
statement in some considerable detail. This is likely to require the year to be
broken down into monthly figures or on a quarterly basis at the very least. For the
remaining four years of the five-year business plan it will be adequate to produce
annual profit and loss statements. The assumptions on which the figures have
been produced must be clearly stated.

Mohamed Eltaweel 2008 12

 Now that we have discussed how to create a business plan in order to start
the business, managing the business becomes the main priority. Management is
important because it is the process that will guide t he business from the starting
point till it reaches potential growth.

The Art of Management

Management is the coordination of work activities so that they are completed

efficiently and effectively with and through other people. However the work has to be
organized and done in an organizational structure.

To be able to manage your business properly and avoid potential problems due to
disorganization you need to design your organizational structure in a way that enhances
your control over your business. Assigning specific jobs to employees that belong to
certain departments that are designed to tackle different parts of the business is necessary
for good management. Furthermore, delegating power and responsibilities to managers in
a way that gives them control over their departments, yet assures your control over the
business as a whole, is a balance that allows good management.

- Work specialization, which is the degree to which tasks in an organization are

divided into separate jobs. The essence of this is that the entire job cannot be done
by one individual so it rather broken up into steps and each step is done by a
different person.

- Departmentalization, this is the basis by which jobs are grouped together. Every
organization will have its own specific way of classifying and grouping work
activities.

Mohamed Eltaweel 2008 13

 - Chain of command, this refers to the continuous line of authority that extends
from upper organizational levels to the lowest levels and clarifies who reports to
whom. It helps employees to answer questions such as “who do I go to if I have a
problem?” or “to whom am I responsible?”

- Span of control, the number of employees a manager can efficiently and

effectively manage. It is very important because it determines the number of
levels and managers an organization has. All things being equal, the wider or
larger the span, the more efficient the organization. Since there will be less
managers so it will be more cost efficient. However the wider the span the more
employees there are under one manager, which at some point might not be as
effective as a company with less employees under each manager.

- Centralization & decentralization, a centralized organization is one where the

degree to which decision making is concentrated at a single point at the
organization. While decentralization is the type of organization where the degree
to which lower level employees provide input or actually make decisions.
However this is relatively an organization is never completely centralized or
decentralized, there should be a middle ground.

Human resources could be, in some cases, the most valuable resources that a business
can have. Therefore appropriate human resources management will bring higher
productivity to the business.

Human resources management

It is the process of acquiring, training, appraising and compensating employees,

and attending to their labor relations, health and safety, fairness concerns.

Mohamed Eltaweel 2008 14

Importance of Human Resources Department

It is an essential department to help you NOT:

ƒ Hire wrong person
ƒ Find your people not doing their best
ƒ Commit any unfair labor practices
ƒ Allow lack of training to undermine your department’s effectiveness.

What do managers do?

1. Job analysis:
This is the procedure for determining the duties and skill requirements of a job
and the kind of persons who should be hired for it. It is used for writing the job
description and job specification.
Job description: A list of job responsibilities, duties, reporting relationship and
working condition.
Job specification: A list of human requirements that is the education level, skills,
personality needed to perform this job.
Job analysis is used for:
ƒ Recruiting and selecting
ƒ Determining Compensations
ƒ Determining unassigned duties.

2. Write job descriptions:

There is no standard format to write job description, however it usually includes the
following sections:
1. Job identification
2. Job summary
3. Relationship with other jobs.
4. Responsibilities and duties.

Mohamed Eltaweel 2008 15

 5. Authority of incumbent.
6. Standard of performance.
7. Working conditions.
8. Job specification.

Legal Affairs

What is law?

• The law regulates relations between different people, it sets out rights and obligations
of individuals towards other individuals and towards the state, and it organizes the state.
• The law sets standards for both businesses and individuals and it provides remedies in
the event that one business or individual believes it has been injured by another.
• It is basically a framework under which a state functions in all fields and areas.

The characteristics of law

1. law should be issued by legislative power

- a certain organ in the administration of the state, in Egypt it is the people’s
assembly.

2. constitutional law
- Law should be in accordance to the constitution which is the fundamental
law of any state. If law is unconstitutional then it is void.

3. territoriality of the law

- The law is to be applied in the state and can not be extended to other
territories that fall outside the ambit of the state.

4. law is non-retroactive
- Any law once is issued by the legislative power then it must be applied
immediately, from its date of issuance, and it does not apply to the past.
EXCEPTION: any law that should have retroactive effect, then it should
be approved by 80% of the representatives of the People’s Assembly.

5. principle of non ignorance of the law

- Everyone is assumed to k now the law; you can not raise the argument of
not knowing the law.

Mohamed Eltaweel 2008 16

Sole proprietorship from a legal prospective:

It is a person who engages in commercial activity for his or her own account. To
be licensed as a sole proprietor, the person should apply to the competent Commercial
registration Office to register in the commercial registrar.

Important requirements for the registration:

a. The applicant should be at least 21 years old
b. The applicant should carry the Egyptian nationality unless he or she will carry out
the activity under the investment law or will engage in exporting activity.
c. The applicant should use his/her own name as a trade name. This trade name
should appear on the business firm or shops and in all the business
correspondence.
d. The applicant should provide the Commercial Registrar office with other relevant
important data such as the nature of the business or trade, the capital of the
business (no minimum capital is required), the addresses of the main firm and
details of trademarks or copyrights.

The categories of companies in Egyptian law

1. First category partnership

a. General partnership
It is a business co-owned by two or more general partners who are liable
for everything the business does
b. Limited partnership
It is a business co-owned by one or more general partner who manage the
business however it has limited partners who invest money in it.
c. Partnership limited by shares
It is similar to the joint stock company with the exception that at least one
of the founders has unlimited liability in meeting the company’s financial
liabilities. The company is prohibited from conducting the business of
insurance, banking or savings or investing funds on other people’s behalf.

The minimum share capital required of a limited partnership by shares is

250,000 L.E. the capital is divided into two categories: 1) shares owned by
founder partners. 2) Shares of equal value belonging to shareholders. The
founder partner have unlimited liability while the shareholders liability is
limited to the value of their respective shares. The contract of foundation
of a partnership l limited by shares is called “preliminary Articles of
incorporation” and the company’s by law or statues.

Advantage of partnership
• Easy to start up with regards to regulations in comparison to the formation of
a corporation.
• Combined business skills, knowledge and financial resources.
• Possible tax advantage (i.e. 5 year tax exemption)

Mohamed Eltaweel 2008 17

Disadvantage of partnership
• Unlimited liability: they are personally liable for the companies affairs which
means that in the case of debt they will pay out of their personal assets.
• Lack of continuity: conflict between partners could result in the termination of the
partnership.
• effects of management disagreements

2. Second category: corporations

A. limited Liability Company
It is a form of business ownership that provides limited liability protection. The
Egyptian limited liability company is a closed company where the liability of each
partner is limited to the value of the shares in the company. The number of
partners of this corporation cannot be less than 2 persons and cannot exceed fifty.
Its shares cannot be traded in the stock change either.

Limited liability companies cannot raise funds as capital or as loans through

public offering. Also such companies may conduct a variety of business activities,
with the exception of insurance, banking, savings, receiving deposits or investing
funds on behalf of others.

The contract of foundation of a limited liability company is called the “articles of

incorporation.”

B. joint Stock Company

It is an artificial person created by law, with most legal rights of a real person.
It is a regulated company whose capital is divided into shares, the liability of each
shareholder is limited to the value of his or her shares and the shares can be traded
in the stock exchange. The number of shareholders cannot go below three at any
time.

The contract of foundation of a joint stock company is called the “preliminary

articles of incorporation” and the company’s by-laws or statutes.

Advantage of corporation:
• limited liability: non of the investor’s personal assets are at risk, only the
amount of their investment.
• ease of transfer of ownership: since the ownership is through the purchasing
of stocks, they can easily be exchanged.

Disadvantage of corporation:
• difficulty with paper formulation
• high expense of formation
• Extensive government regulation
• double taxation

Mohamed Eltaweel 2008 18

 • lack of secrecy

Available ways to establish a business in Egypt

[A]Through the General Authority for Investment and Free Zones &In accordance
with Law No. 8 of 1997 on Investment Guarantees and Incentives.

The advantage of this way is tax exemption for a period of five years which start from the
day of production

The steps to be followed are as follows:

Step One:
• Go to the specific competent administrative authority inside the General
Authority for Investment and Free Zones which would be responsible for the
specific activity of your company. These are:

1. The Legal Department

2. The Industrial Projects Department
3. The Agricultural & Constructional Projects
Department
4. The Financial & Services Projects Department

Give the following documents to the governmental clerk: (Required Documents)

A. Models of incorporation:
1. A request for the founding of the company on a standardized form (2 pages)
2. The company’s contract of incorporation according to the company’s structure
(sole proprietorship, joint stock,…etc)

B. Ownership documents or what proves the possession of the investment land or giving
A 1 year notice to provide the ownership documents.
Other Documents for special situations:

Mohamed Eltaweel 2008 19

 1. A certificate showing that the company’s name does not
conflict with another existing company’s name. This
certificate is to be extracted from the commercial register.

2. A bank certificate of the deposit of 10% of the company’s

issued capital in joint stock companies or of the full
capital in Limited Liability Companies.

3. In case the location of the project is in north or south of

Sinai, a rough plan for the company is required.

Note: the approval of the municipality on starting the business activity in their area is
highly required.

Step Two:
3. The entrepreneur presents the required documents to the consultancy room before
he officially hands them in, in order to receive free help and support in filling
these documents.
4. The documents are then handed to the legal department for further check.
Step three:
5. Receive the documents from the Legal Department of the General Authority after
it’s reviewed and proceed to the Lawyers’ Syndicate inside the General Authority
to ratify the lawyer’s signature.
Step four:
6. Proceed to the Public Notary inside the General Authority to ratify the investors
or partners signatures.
7. Return the contract to the Legal Department of the General Authority in order to
receive the decision of the licensing of the company’s formation and pay the fees
of publishing in the investment Gazette.
8. You should receive the decree of the establishment of the company from the
Legal Department in addition to:

Mohamed Eltaweel 2008 20

 1. The decision of the licensing of the founding of the
company
2. A letter to the Commercial Registration Office to
register the company in the companies’ register
3. A letter to the Investment Tax Authority

[B]through commercial Registration office

The steps to be followed for the formation of a sole proprietorship or any kind of
partnership are as follows:

Step one
Draft a contract for the company.

Step two
Authenticate the contract and its summery at the commercial registrar office that is at the
same locality as t he company. This procedure is free of charge. The employee in the
commercial registrar will stamp both the contract and its summery with a certain stamp
called “eligible for registration”
Or authenitenticate the contract at any public Notary office

Step three
Go to the commercial department in the court of first instance in the same locality as the
company to registrar the contracts summery. The fees are 0.002 % of the company’s
capital. Then a memorandum of the summery is done and is posted on special board at
the courts entrance.

Step four
Go to the tax authority to receive the tax card. Take the following documents with you:
- contract of ownership or rent of place for the business
- electricity bill in the name of either landlord tenant
- identification cards of the partners
- the company’s summary

Step five
Go to the chamber of commerce in the same locality as the company, where you will be
issued a certificate for activity of the company. This is an annual membership; have to
pay this amount on an annual basis for continual membership.

Step six
Go to the commercial registrar office with all above documents in order to register the
company’s registrar. Then you will receive your commercial registrar

Mohamed Eltaweel 2008 21

 A word from the Moderators

Dear participants,

We had the honor of working with you as a group during the sessions and the simulation.
As a team, we have learned a lot from this experience and have gained new friends. We
hope that you have found SBS 06 an experience that was both fruitful and enjoyable. We
look forward to stay in contact with you after the convention inshallah.

Yours truly,

Mohamed Eltaweel
Mariam Kumara

Mohamed Eltaweel 2008 22