The Golden License in Egypt
It means one approval to establish, operate and manage the project, including building permits, and allocating the necessary real estate for it. It may be granted to companies by a decree of the Cabinet. This approval may also include the validity of one or more of the incentives mentioned in this law to the project. This approval shall be effective with no needed further action.
In this regard, Cabinet Resolution No. (56) of year 2022 was issued regarding determining the conditions for considering the investment project as strategic or national in the field of applying the provision of Article (20) of the Investment Law stating that meeting one or more criteria such as contributing to increasing exports through exporting part of 50% of its products abroad annually within a maximum period of 3 years from the date of operating the business.
It includes that the project depends for its financing on foreign exchange transferred from abroad through one of the Egyptian banks, and aims to reduce imports, localize the industry, and root the local component in its products, so that the percentage of the local component of raw materials and production requirements in its products is not less than 50%, provided that this percentage is calculated by deducting the value of imported components from the production cost.
According to the Investment Authority, the regulations and conditions of the golden license are that taking the form of a joint-stock company or a limited liability company, and that the issued capital of the joint-stock companies and the capital of the limited liability company not be less than 20% of the investment costs of the project other than the obligation to provide proof of financial solvency to implement the project.
It is expected that the golden license will reflect positively on the Egyptian economy, while facilitating and accelerating the procedures for registering companies and inaugurating their headquarters in Egypt, in addition to enhancing the attraction of foreign investments.
Conclusion
In conclusion, the Golden License is a significant step towards encouraging investment and promoting economic growth in Egypt. This license grants approval to companies for establishing, operating, and managing their projects while enjoying several incentives mentioned in the Investment Law. The recent Cabinet Resolution No. (56) of year 2022 further determines the criteria for considering investment projects as strategic or national, encouraging local production, reducing imports, and promoting the localization of industries. The Investment Authority has set regulations and conditions for companies to obtain the Golden License, which will help accelerate procedures for registering companies and attracting foreign investments. Overall, the Golden License is a promising initiative that is expected to have a positive impact on the Egyptian economy.
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