The “Golden License” for Investment Projects
Earlier on, the obtainment of separate approvals from multiple government bodies was required in order to establish projects and obtain the necessary licenses.
However, Investment Law No. 72 of 2017 was adamant to simplify the procedures for Investors by establishing an investment window through all authority’s branches; in order to handle, solve the problems of investors, facilitate the granting of licenses, and deal with all the challenges facing the establishment of companies and new investment projects.
Pursuant to this, President Abdel Fattah El-Sisi agreed to grant investors the “Golden License”; which is not an exemption from fulfilling all the regulatory requirements from various government agencies, however, it shortens such procedures in a one-step approval that reduces time and effort.
The “Golden License” shall be granted by a decision of the Prime Minister for investment projects that meet the forthcoming conditions:
- The company must take the form of a joint stock company or limited liability company.
- The company’s capital shall not be less than 20% of the investment costs of the project.
- Provide evidence of financial solvency for the implementation of the project.
- The project shall be of a strategic or national nature. The project is considered of a strategic or national nature if it meets one or more of the following criteria:
- Contributes to increasing exports.
- Its financing depends on foreign funds transferred from abroad.
- The percentage of the local component of raw materials and production requirements in its products is no less than (50%).
- To be a national labor-intensive project.
- To be established in one of the areas in greatest need of development in accordance with decree No. 7 of 2020.
- Contributes to reducing the environmental impact, reducing heat and gas emissions, and improving the climate.
- Aide in reducing imports.
- Companies that establish partnership projects between the private sector and the state, or the public sector, or the public business sector in the following activities;
- Public utilities and infrastructure
- New and renewable energy
- Roads and Transportation
- Communication and Information Technology
To conclude, this article aims to highlight the state’s endeavor to overcome bureaucracy and facilitate procedures for investors in establishing projects and obtaining the necessary licenses, which increases the new industrial investments and industrial output. Hence, in turn, reflects positively on the strengthening of the Egyptian economy and achieves sustainable development.
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