In general: Business entities
in Egypt that have been incorporated after the enactment of the Law
8 of 1997 enjoy further guarantees and incentives.
The main areas that are affected by the above mentioned benefits
consist of land retrieval, manufacturing and mining, all aspects of
touristic business, trade and shipping of agricultural and industrial products,
air and maritime transportation, services for the field of oil and
gas, accommodation and infrastructure projects, medical centers
that apply a policy of granting 10 per cent of their facilities for
the purpose of free treatment, computer programs and systems.
In case the entity under question has a variety of other
activities, the appliance of the guarantees takes place only for
the activities discussed in the Law № 8.
The following guarantees and incentives are discussed in the Law
Exemption from nationalization or
Exemption from administrative
attachment or asset freezing
The right to purchase lands and
buildings necessary to proceed with the operations of the
The right to import tools, vehicles
and raw material required for operations
The right to export the
Discharge from specific provisions of
the Egyptian Company's Law
Exemption from stamp taxes
Exemption for 5 years from the date
of registration with the Commercial Registry from the payment of
charges related to legalization and registration. Such fees apply
for the loan and mortgages agreements concerning the business
Land title registration is also under
exemption from the said fees
5 per cent import customs are applied
for the establishment of the company
GAFI is the authorized institution responsible for the
regulations monitoring of the process of business establishment
under the Investment Law.
According to the amendment to Law 8 of 1997 the newly
incorporated companies have the right to transfer the capital in
foreign currency from abroad with a condition that the sum is
transferred in full.
Free Zone Investment
The above mentioned law also touches on the setting up of the
structure for incorporation and management of general free zones in
Egypt. They have been established as an addition to Cabinet
GAFI is the primary authority responsible for outlining the
regulations and guidance for activities that take place in the free
zones along with the business licensing procedures and regulations
for land and buildings utilization. The Board of Directors holds
the responsibility of managing the free zones with each free zone
having a separate BOD. The Chairman of BOD issues the decrees for
The projects at the free zones are exempted from taxes with a
payment of annual fees payable being retained. The fee includes 1
per cent of the worth of goods for storage added to 1 per cent of
the added value of the existing goods. Transit products trading is
exempted from the fees. Moreover, there are projects that are not
related to the movement of products. The realized revenue from such
projects is subject to a 1 per cent annual fees. Added to those are
annual service fees of 0.5 per mille of the project capital cost in
a range of $100 to $1,000.
Import and export laws do not apply for the project at the free
zones along with all the technology, equipment and vehicles needed
for the business operations.
There is a further possibility of GAFI setting up private free
zones and supporting a transformation of an in-land project to a
private free zone.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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