Egypt is known for its diverse and thriving industrial sector, which plays a significant role in the country’s economy. The industrial sector in Egypt encompasses a wide range of industries, and these industries contribute significantly to the country’s economy, providing employment opportunities and driving export growth. With the government’s continued focus on industrial development and attracting investments, Egypt’s industrial landscape is expected to expand further, fueling economic progress and technological advancement. Thus, getting Industrial licenses in Egypt is the first step driving economic growth and development at its proper legal framework.
Definition of Industrial Licensing
Industrial licensing refers to the regulatory practice of requiring businesses to obtain permission from government bodies before they can undertake certain types of industrial activities. This process is typically aimed at regulating economic activity, ensuring safety and environmental standards, and protecting consumer interests. Licenses are often required for industries that have significant environmental impacts, involve health and safety concerns, or utilize scarce resources.
Essentially, a licensing system is designed to secure the compliance of all businesses with the required terms and rules for the protection of public health, security, and environment. Investors who violate the licensing system are liable to penalties, ranging from a fine to imprisonment and closure of the enterprise.
Meanwhile, investors who fail to adhere to the requirements of the licensing system are not illegible to benefit of certain advantages and incentives as stipulated in Investment Law 72/2017.
Important to note is that the Industrial Licensing Law was passed amid a series of economy-focused laws aimed at promoting investment in Egypt and liberalizing the economy, including the Bankruptcy Law, Investment Law, and VAT Law.
Advantages of getting industrial licenses in Egypt
There are many Advantages from getting an industrial license in Egypt include:
- Legal operation: Temporary licenses allow informal industrial facilities to operate legally.
- Access to financing: Licensing provides access to financing for businesses.
- Recognition for contributions: Businesses gain recognition for their contributions to the economy.
- Modernization efforts: The move is part of Egypt’s efforts to modernize its economic infrastructure.
- Attracting foreign investment: The law encourages businesses to invest in Egypt.
- Deductions for investors: Investors in specific sectors can benefit from deductions on their investment costs.
- Dedicated customs ports: The golden license allows for the establishment of dedicated customs ports for investment projects.
Documents required to obtain industrial licenses in Egypt
In the case of establishing a factory, an industrial register shall be obtained from the Industrial Development Authority. It is recommended to appoint an expert lawyer as at “Consortio Law Firm” to follow up all procedures, because they differ according to the activity practiced by the company.
The establishment of factories is only in the industrial zone, and an industrial license shall be available.
Documents required to obtain industrial licenses in Egypt and an industrial registry include:
- Proof of identity of the applicant.
- A recent and valid extract of the commercial register (no more than 3 months old).
- Power of attorney or authorization in the case of the principal or delegate.
- Deed of ownership of the facility (lease contract or title deed).
- A valid membership certificate from the Federation of Industries.
- Technical and Environmental File (Engineering Consulting Office).
- Fire prevention report or previous civil defense approval (the report is approved by an engineering consultant office).
- Tax card.
- The original industrial register or operating license in case of modification (the modification of the operating license will be if the activity of the required license is different from the original activity for which the factory was assigned).
- Letter of connection of utilities according to the required capacity (electricity, water, etc.).
Egypt’s industrial sector is characterized by a diverse range of industries, each contributing to the country’s economic growth and employment generation. The government has implemented various measures and incentives as obtaining Industrial licenses in Egypt to attract investments and foster industrial development. These efforts have resulted in the establishment of industrial zones and clusters, where companies can benefit from infrastructure support and a conducive business environment.
We at “Consortio Law Firm” guide you towards the right legal direction to start a successful Industrial investment business in Egypt, where our skilled lawyers and consultants provide the necessary assistance to know and obtain all Industrial licenses in Egypt, ensuring compliance and facilitating successful business operations in Egypt.
If you have any queries related to the Process, feel free to Contact us immediately via the phone number 002 01028806061 or send us a WhatsApp or email Info@consortiolawfirm.com.