Classification of Companies Established under the Investment Law

Companies established under the Investment Law are considered a fundamental pillar for driving economic development in any country. The law grants these companies multiple incentives and guarantees that encourage the attraction of both local and foreign capital, providing them with a competitive and stable business environment.

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Companies established under the Egyptian Investment Law are considered a fundamental pillar for driving economic development. The law grants these companies a wide range of incentives and guarantees that encourage both local and foreign investment, providing them with a competitive and stable business environment.

Advantages of Registering a Company under the Investment Law

1. Tax and Customs Incentives and Exemptions

  • Stamp duty and registration fee exemptions: Companies are exempt from stamp duty, notarization, and registration fees related to incorporation contracts, credit facility agreements, and mortgages for five years from the date of registration in the commercial registry.
  • Unified customs duty: A 2% customs duty is applied to the value of imported machinery, equipment, and devices required to establish or complete the company, replacing higher standard customs rates.
  • Tax deductions:
    • Up to 50% of investment costs in strategic areas (e.g., Suez Canal Economic Zone).
    • 30% in other regions.
    • Applicable for up to seven years.

2. Facilitated Establishment and Operation Procedures

  • Simplified processes: Reduced bureaucracy and faster establishment and licensing, through a "one-stop shop" system that consolidates all procedures under a single authority.
  • Post-establishment support: Ongoing operational and administrative support through Investor Service Centers managed by the General Authority for Investment.

3. Legal Guarantees and Investor Protection

  • Protection from nationalization or expropriation: Investment projects cannot be seized or nationalized except through a final judicial ruling.
  • Guaranteed financial rights: Freedom to transfer profits and capital abroad, plus access to effective dispute resolution mechanisms.
  • Secure licensing: Licenses can only be revoked after prior notice to the investor and a grace period to correct any violations.

4. Technical and Logistical Support

  • Modern infrastructure: Access to essential services—energy, water, and transport—at competitive rates.
  • Workforce training support: The government contributes to technical training costs for employees in investment companies.
  • Import/export facilitation: Authorization to establish dedicated customs outlets for imports and exports related to the project.

5. Encouragement of Investment in Key Sectors

  • Activity flexibility: Investors can operate in a wide range of sectors including industry, agriculture, tourism, technology, and more.
  • SME support: Special incentives are available for small and medium enterprises (SMEs) to strengthen their role in the national economy.

6.Practical and Marketing Conclusion

Registering a company under the Investment Law provides a significant competitive edge. It enables businesses to benefit from generous exemptions and streamlined procedures, while operating in a secure and investment-friendly environment.

These advantages make Investment Law-registered companies the ideal choice for investors seeking sustainable and promising opportunities in Egypt and the broader Arab region.

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