What is the Golden License?
The Golden License is a comprehensive approval of the construction, operation and management of a project, including building permits for that project and the allocation of the required real property for it.
Such approval may include the application of one or more of the incentives mentioned in this Law to the project.
This consent is effective on its own without the need for any further action.
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Incentives that can be granted to companies under the Golden License
According to Article (20) of the Investment Law, the Golden License (Comprehensive Approval) may include the application of one or more of the incentives stipulated in this Law to the project, and those incentives stipulated in Chapter Two of the Investment Law may include, namely:
- General incentives.
- Special incentives.
- Additional incentives.
How your company can get the Golden License
The Golden License may be granted to the following companies:
- Companies that are established to establish strategic or national projects that contribute to achieving sustainable development in accordance with the state’s economic development plan.
- Companies that are established to establish a partnership between the private sector and the state, the public sector or the public business sector in the activities of (public utilities and infrastructure – new and renewable energy – roads and transportation – ports – communications and information technology).
Conditions for considering the investment project strategic or national
Cabinet Resolution No. 56 of 2022 was issued specifying the conditions and controls for classifying any investment project as strategic or national in application of the provision of Article (20) of the Investment Law, including that the investment project meets one or more of the following criteria:
- Contribute to increasing the state’s exports abroad by no less than fifty percent (50%) of its products annually, provided that this export begins within 3 (three) years as a maximum from the date of commencement of business.
- The source of its financing shall be foreign funds transferred from abroad through an Egyptian bank, taking into account the provisions stipulated in Article (6) of the Investment Law and Article (9) of the Executive Regulations of the Investment Law, and subject to the rules set by the Board of Directors of the Central Bank of Egypt.
- To aim to reduce imports, support the local industry, as well as deepen the local components in its products, provided that the percentage of local components in its products, including raw materials and production requirements, is at least (50%), and that the said percentage is calculated by subtracting the value of imported components from the cost of the product.
- The company should be established in one of the areas most in need of development specified in Cabinet Resolution No. 7 of 2020.
- To contribute to the transfer and integration of modern technology to Egypt and to encourage innovation, development and scientific research in the manner determined by the Minister concerned with communications and information technology. Or the Minister concerned with scientific research, as the case may be.
- To be one of the projects that aim to provide strategic goods to Egypt and thus prevent or limit their import.
- It must be a labor-intensive project that uses the national workforce, as indicated in Article (11) of the Executive Regulations of the Investment Law.
- The application of the principles of sustainable development shall contribute to mitigating the environmental impact, reducing carbon emissions, and improving weather conditions, as determined by the Minister concerned with environmental affairs.
Prime Minister’s Decree No. 56 of 2022.pdf
You can view our blog on Sustainable Finance & development here.
Terms and conditions to be met by applicants for the Golden License :
- To be in the form of an Egyptian joint stock company or a limited liability company in accordance with the provisions of the Investment Law promulgated by Law No. 72 of 2017, or joint stock companies, limited partnership companies by shares, limited liability companies and single-person companies issued by Law No. 159 of 1981.
- The issued capital of joint stock companies and the capital of the limited liability company may not be less than 20% of the investment costs of the project.
- They must provide proof of solvency for the implementation of the project.
- The company must be incorporated on a date subsequent to the effective date of the aforementioned Investment Law.
- They must submit a preliminary feasibility study for the project prepared by reputable and licensed national or international consulting firms.
- They must provide a timetable for the implementation of the project;
- Submit a declaration of the provision of all infrastructure facilities (roads – water – sanitation – electricity – communications – waste management)
- They must submit a declaration of all requirements and controls related to the company’s activity in accordance with the laws and regulations governing this.
The Cabinet launched a link on its website to register applications for the Golden License and receive applications from investors wishing to obtain it. If you want to register, Click here.
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