New Investment Law
In response to the need of attracting more foreign and domestic
investors, the Egyptian Government has promulgated the New Investment Law No.
72 of the year 2017.
The Law came into force on the 1st of
June 2017, while the Executive Regulation of the same Law has been accepted by
the cabinet and presently is being revised by the Egyptian State Council.
The Motivational Benefits behind the New Investment Law
The Government Warranties and Labor Omissions:
Raising the percentage of the foreign employees working within the borders of Egypt from 10% to 20%.
The Government has also prevented the following issues:
- Issuing any decrees that may add any financial burden over the investors.
- Nationalization of the investment projects.
- Cancelling any permits without getting the acceptance of the General Authority for Investment (GAFI).
- Seizing, freezing, or imposing guardianship on investment projects except by virtue of court order.
- Exclusion of the stamp tax, the majority of the governmental expenses, and land or property registration fees.
- The Egyptian government will be responsible for paying the infrastructure costs.
- Tax subtraction ranging from 30% to 80% of the investment costs.
- Any extra financial benefits might be gained according to the importance of the objective strategic, the location and the number of the employees working on the investment project.
- Creating customs ports that will be contributed only for certain project to asses in the exportation and importation cycle.
- Uniting the entire customs duties rate to 2% on all equipment and material needed in creating and manufacturing the investment projects.
- Indemnification of the investor to the half of the property value in case production begins within 2 years of receiving the property.
How Can We Help
We as experts in Law are ready to help you on the following matter:
- Creating Egyptian corporations under the New Investment Law.
- Attain any needed licenses and acceptances from the competent governmental authorities.
- Drafting the articles of association of any Egyptian Corporate or any other needed documents.
- Giving advice on matters related to the New Investment Law and how to gain more benefit from the benefits that the New Investment Law offers.