The Golden License for Establishing Projects in Egypt

• Golden License (Single Approval):

The Golden License can be defined as a single approval for establishing, operating, and managing a project. This includes building permits and the allocation of necessary properties for the project, in accordance with Article (20) of Investment Law No. 72 of 2017 and Articles (42, 43) of its Executive Regulations, without prejudice to the provisions of Article (23) of this law. Upon a decision by the Cabinet, companies, whether they are established or new, can be granted the Golden License to initiate new investment projects or strategic and national projects. These projects should contribute to development in specific areas as designated. The decision also specifies criteria set by the Cabinet for granting this license to public-private partnership projects in public utilities, infrastructure, new and renewable energy, transportation, or ports.

• Features of the Golden License:

- This approval may include one or more incentives provided under this law for one or more projects.

- The approval takes effect on its own without the need for any further action.

- According to Article (20) of the Investment Law, the Golden License (single approval) may extend one of the incentives provided under this law to one or more projects. This includes the incentives specified in Chapter Two of the Investment Law, which are:

(1) Public incentives.

(2) Private incentives.

(3) Additional incentives.

• How to Apply for the Golden License:

(1) Create a new account on the website.

(2) After registering a new account, a code will be sent to your email to activate the account.

(3) Log in to your account.

(4) Navigate to the homepage.

(5) Submit the application and upload the required documents from the homepage.

• Companies Eligible for the Golden License (Single Approval):

The Golden License may be granted to the following companies:

- Companies established to undertake strategic or national projects that contribute to sustainable development in accordance with the state's economic development plan.

- Companies established to engage in public-private partnerships with the state, the public sector, or the public business sector in activities such as public utilities and infrastructure, new and renewable energy, transportation, ports, and information and communication technology.

• Conditions for Considering an Investment Project as Strategic or National:

Cabinet Decision No. (56) of 2022 established the conditions for considering an investment project as strategic or national in the application of Article (20) of Investment Law No. 72 of 2017 mentioned above. The project must meet one or more of the following criteria:

- Contribute to increasing exports by exporting at least 50% of its products abroad annually within a maximum period of three years from the start of operations.

- Finance itself with foreign currency transferred from abroad through an Egyptian bank, according to the provisions of Article (6) of the Investment Law and Article (9) of its Executive Regulations, and following the guidelines set by the Central Bank's Board of Directors.

- Aim to reduce imports, localize industry, and deepen the local content in its products, ensuring that the local content of raw materials and production requirements in its products is not less than 50%, calculated by deducting the value of imported components from the cost of the product.

- Be located in one of the areas most in need of development, as defined by Cabinet Decision No. 7 of 2020.

- Contribute to transferring and localizing modern and advanced technology to Egypt, supporting innovation, development, and scientific research, as determined by the competent Minister of Communications and Information Technology or the competent Minister of Scientific Research, depending on the circumstances.

- Aim to secure strategic goods for the country and reduce their importation.

- To qualify as a project that prioritizes the employment of the national workforce, as specified in Article (11) of the Executive Regulations of the Investment Law.

- Contribute to reducing environmental impact, lowering thermal and gas emissions, and improving the climate, according to the determinations of the competent Minister of Environment.

• Rules and Conditions Required for Applying for the Golden License:

According to Article (42) of the Executive Regulations of Investment Law No. 72 of 2017 and Prime Ministerial Decision No. 4426 of 2022 regarding the amendment of certain provisions of the Executive Regulations of the Investment Law issued by Prime Ministerial Decision No. 2310 of 2017, applicants seeking the single approval stipulated in Article (20) of the Investment Law must meet the following conditions:

- Must take the form of a joint stock company or a limited liability company, in accordance with the provisions of the Investment Law issued by Law No. 72 of 2017 or the Law on Joint Stock Companies, Partnership Limited by Shares Companies, Limited Liability Companies, and  One Person Companies issued by Law No. 159 of 1981.

- The issued capital for joint stock companies and capital for limited liability companies must not be less than 20% of the project's investment costs.

- Comply with submitting proof of financial solvency to implement the project.

- The company must be established after the effective date of the aforementioned Investment Law.

- Submit a preliminary feasibility study for the project prepared by a reputable national or international consulting firm licensed to do so.

- Commit to submitting a timeline for the project's execution.

- Provide a statement affirming the commitment to provide all infrastructure facilities (roads, water, sewage, electricity, telecommunications, waste management).

- Provide a statement affirming adherence to all conditions and regulations related to the company's activity according to the laws and regulations governing it.

• Fields and Activities Granted the Golden License:

- The electricity and renewable energy sector.

- The petroleum and mineral resources sector.

- Transportation projects.

- The industrial sector.

- The communications and information technology sector.

- The housing, utilities, and urban development sector.

- The tourism sector.

The authority, in collaboration with the relevant entities, is responsible for monitoring companies' compliance with the requirements and regulations for establishing, operating, and managing projects by the applicable laws and regulations. This is done through a committee formed for this purpose. In the event of a company's breach of the aforementioned requirements and regulations, it is given a reasonable period to address or rectify the violation. If the company fails to remedy the situation within this time frame, the execution of the project or its activity may be suspended, or one or more of the incentives granted to it may be withdrawn, depending on the severity of the violation, for a specified period not exceeding one year. If the violation persists, the Cabinet may, based on a joint proposal from the competent minister and the relevant minister, decide to revoke the single approval granted to the company.

Prepared by/

RPLF Team

Enter your text here...