The Establishment of Industrial projects in Egypt

The Establishment of Industrial projects in Egypt

Procedures and conditions for licensing the establishment of industrial projects in Egypt

The General Administration for Approvals and Industrial Licenses:

The general administration of industrial approvals and licenses shall specialize in the Industrial Development Authority in issuing the approval on establishing industrial projects in Egypt, and issuing the necessary licenses for it, this is according to the provisions of law no. 21 of the year 1958 regarding the industrial organization and its executive regulation, that states that it shall establish industrial projects or amending in an existing industrial entity shall be made only after obtaining the approval of the Ministry of Industry represented by the General Authority for Industrialization in accordance with the presidential decree by law no 21 of the year 1958.

The Industrial Development Authority stated the executive steps for making up an industrial project as follows:

First: Submitting the technical and economic data of the project desired to take the initial approval on making up the industrial project in Egypt:

The conditions of having an initial approval for making up the industrial project:

1. Apply for the initial approval required for the industrial activity.
2. Establish a company and extract a commercial register.
3. Receive the allocated land for setting up the industrial project.

Second: Submitting the technical data of the project desired to take the final approval on making up the industrial project in Egypt:

• Incentives of having industrial project licenses:
  • Having the incentives determined in the investment, guarantees and incentives of the law num. 8 of year 1997 and its amendments including the tax exemption for the projects.
  • Importation of equipment and tools necessary for the project by a unified custom duty in the amount of 5%.
  • Receive the allocated land for setting up the industrial project in the new industrial cities and areas.
  • Having the loans from the competent banks.
  • Issuing construction licenses and factory setting up.
  • Approval on the gas consumption.
  • Determining the electric power.
  • Certify invoices.
• Required documents for extracting a license for setting up an industrial project:
  • Filling in the application no. 1 for setting up an industrial project.
  • The article of association or the company’s by-laws.
  • The instant initial approval.
  • A copy from the purchase contract of land or renting a place or the delivery land statement.
  • Official extract from the commercial register.
  • Operating license for projects in existing cities.
  • Indicating the payment of the prescribed fees and standard costs

Third: Submitting the technical data of the project desired to take the licenses of operating a factory for establishing industrial projects in Egypt:

The general administration of industrial approvals and licenses shall specialize in the procedures of having the licenses of operations and temporary industrial register of the factory, and in accordance with provisions of law no 21 of the year 1958 regarding the industry organization and its executive regulations.

• Documents and approvals required to extract the operating license and the temporary industrial register of the factory:
  1. Fulfilling the application form for operating license and industrial register (no. 1 s c) according to presidential decree no. 350 of the year 2005.
  2. Copies of notice (competency- the delivery land statement-building licenses).
  3. A report from the Building Permits Department stating that there are no building violations requiring removal.
  4. Number of 3 copies of the drawings of the general site of the building and the horizontal projections showing the production lines and the sites of the machines approved by the union engineer.
  5. The article of association or the company’s bylaws.
  6. A copy of (Commercial register-Tax Card- Proof of Identity).
  7. Indicating the Registration of the Social Insurance Authority for the employees of the establishment.
  8. Certificate of membership in the Federation of Industries.
  9. Provide a certificate from a consultant engineer certified from the Engineers Syndicate or a government agency that the implementation of this shall allow the safe operation of the facility against the dangers of fire and industrial security.
  10. The final approval of the Industrial Development Authority on the project.
  11. The approval from the Industrial Development Authority on extracting a temporary industrial register.
• Procedures for extracting the operating license and the temporary industrial register:
  1. Complete the previous documents and pay the prescribed fees.
  2. Issuing letters to get the final approvals from the competent authorities.
  3. Factory preview for approval version of license and temporary record
     • Send a notice from the device to the Industrial Development Authority attached to the application form for the operating licenses and industrial register.
     • The device will be answered by the approved form.

Note:

The applicant shall be given an operating license and an industrial register for one year for the first time.

Fourth: Submitting the technical data to get the industrial register:

The general administration of industrial approvals and licenses shall specialize in the procedures of having the registration in the commercial register in accordance with law no. 24 of the year 1977 and it executive regulations:

• General Administration of Industrial Register:

It is the department entrusted with extracting the industrial register to start the production process for the project and the distribution of products, import and export, and in accordance with the provisions of law no. 24 of the year 1977 and its executive regulations, which states on the necessity of registering the industrial establishments that its capital shall be more than five thousand pounds or its workers are ten workers-whatsoever their dependency-in the industrial registry as the registration of the establishment shall be renewed every five years.

The registration of the industrial register requires that the factory shall be established, has equipment in place, the project has its final approval and reimbursement of standard costs.

• Advantages of obtaining the industrial register:
  • Reducing the customs tariff on importing the needs of the projects from the raw materials.
  • Reducing the customs tariff on importing machinery parts and equipment required for production.
  • Reducing the customs fees on the export of products.
  • The participation in governmental and non-governmental tenders and auctions.
  • The investor shall obtain export support (with a certificate of a valid industrial register).
  • Ease of dealing with banks to open credits and loans for the benefit of the project.
  • Reducing the general tax rate.
• Documents required for registration of the industrial register:
  1. Form 1 s c
  2. Operating license issued by the municipalities or the new city agencies or an error for the municipalities.
  3. The permission of the general authority of industrial development.
  4. An official extract from the commercial register.
  5. Form no. 2 insurance on employees or the last receipt of insurance.
  6. Certificate of membership in the Egyptian federation of industries or the last payment receipt.
  7. Certificate of the compatibility of production to Egyptian standards (shall be determined by the competent technical department).
  8. The standard payment receipt of the Industrial Development Authority.
• In case of Joint stock companies and limited liability companies:
  • The article of association or the company’s by-laws.
  • Copy of the technical assistance contract and the certified engineering drawings (shall be determined by the competent technical department).
  • Any other binding approvals from the concerned authorities.

Notes:

• The temporary industrial register shall be issued for one year.
• The temporary certificate shall be given provided to the client.
• The technical inspection of the factory shall take place within one year from the issuance of the temporary certificate.
• Technical opinion is prepared for inspection.
• Issuing the permanent industrial register and delivering the certificate to the client.
• The industrial register shall be renewed every five years.