The New Investment laws
This year Egypt ratified a landmark investment law that will modernize and reduce barriers to how international companies invest and operate in Egypt. The measure will expand economic growth, domestic production, exports and foreign investment, and is designed to boost employment opportunities and increase Egypt's competitive edge across the region. The law is also expected to ensure equality of opportunity, empower youth, protect the environment and public health, and enhance good governance and transparency. The new law guarantees a number of protections for international investors to encourage new development in Egypt:
Corporate regulatory and implementation; we establish all types of companies in Dubai from Setting up of offshore entity in UAE – which includes acting as Registered Agent for Offshore Entities to Setting up of Limited Liability Company (LLC), Branch of Foreign Company, Sole Establishment, partnership Firm and Free Zone Company.
Foreign investors may now be granted preferential treatment, with approval from the Council of Ministers.
Investments will not be governed by arbitrary procedures or discriminatory decisions.
Investment projects will not be nationalized
No administrative authority can revoke or suspend investment project licenses without proper warning, due process, and time to correct any issues.
Foreign investors are guaranteed residence in Egypt during the term of a project.
Investors have the right to transfer their profits abroad
Investors' projects may include up to 10% foreign employees, and up to 20% for investment companies.
Foreign employees of investment companies have the right to transfer their compensation abroad.
General Incentives: Companies will receive a 2% overall customs tax exemption on the value of imported equipment and machinery. They will also be exempted from stamp tax and registration fees on articles of association, mortgages, loan agreements and land contract notarizations related to their investment.
Special Incentives: The new law provides deductions from taxable net profits according to a forthcoming investment map that will identify investment areas as Sectors A and B. Investors will receive a 50% discount off investment costs in Sector A and a 30% discount off investment costs in Sector B for specified priority activities.
Additional Incentives: Egypt's Council of Ministers may decree additional incentives, which will be awarded by the head of the General Authority for Investment and Free Zones (GAFI). These may include subsidized utilities, the allocation of lands free of charge for strategic activities, and other incentives.