Steps, advantages and disadvantages of establishing a company in the Golden Triangle of the Suez Canal.

Establishing a company in the Golden Triangle (one of Egypt's special economic zones) offers exceptional advantages, but it requires following specific steps and adhering to specific legal and regulatory controls. The following outlines the steps, advantages, and disadvantages:

1. Obtain Initial Approval

o Submit an incorporation application to the General Authority of the Golden Triangle Economic Zone, specifying: the project's purpose, investment cost, founders and their nationalities, legal structure, capital, sources of funding, number of employees, environmental impact, and any other requirements requested by the Authority.

2. Submit Basic Documents

o Copies of national ID cards or passports.

o Power of Attorney for Company Incorporation.

o A validated lease contract for the administrative headquarters.

o A feasibility study for the project.

o A bank certificate confirming the capital deposit.

o Company Articles of Association and Bylaws

3. Application Review and Final Approval

o The Authority reviews the application and documents and may require additional environmental, security, or technical requirements.

o After approval, a decision is issued to establish the company and allocate the land or investment area.

4. Company Registration and Issuance of Licenses

o Register the company in the Commercial Register.

o Obtain a tax card.

o Obtain operational licenses from the Authority (issued through a single window, without the need to deal with multiple government agencies).

5. Commencement of Business

o Notify the Authority of the date of commencement of production or activity within 90 days of commencement, along with a statement of investment costs certified by an auditor.

1- Exceptional Tax and Customs Incentives:

o Exemption from stamp duty, notarization fees, and registration fees for articles of association for a period of 5 years.

o Exemption from customs duties of only 2% on machinery and equipment

o Deduction of up to 50% of investment costs from net taxable profits

(for Sector A, which includes the Golden Triangle)

2- One-Stop Shop:

o All procedures and licenses are processed through the General Authority for the Special Economic Zone,

without the need to deal with multiple ministries and government agencies.

3- Integrated Investment Environment:

o Modern infrastructure, industrial, mining, tourism, agricultural, and commercial zones,

proximity to ports (Safaga, Quseir)

4- Strong Legal Guarantees:

o Not subject to the laws of public bodies, but rather to a special law that ensures speedy procedures and stable legislation.

5- Huge Investment Opportunities:

o Vast mineral resources (gold, phosphate, iron, titanium), tourist areas, nature reserves, and high-quality agricultural lands.

Disadvantages and Challenges of Establishing Businesses in the Golden Triangle

6- Multiple Fees and Initial Costs:

o Despite the existence of a single window, some government fees and licensing costs may be high and vary depending on the activity.

7- Occasional Overlap of Procedures:

o In some cases, the investor may require additional approvals from environmental, security, or technical authorities, which may lengthen the process.

8- Infrastructure Challenges Outside Developed Areas:

o Some areas are still in the process of being fully developed, which may affect the speed of startup for some activities.

9- Significant Capital Requirement:

o The nature of the activities (mining, industrial, logistics) requires relatively large investments compared to some other areas.

10- Changing Policies or Regulations:

o As a relatively new area, some changes in regulations or rules may occur depending on the development of the project.

Conclusion:

Establishing a company in the Golden Triangle offers investors significant tax and customs benefits, a comprehensive business environment with a single window for procedures, but it requires adequate capital and the ability to deal with some administrative and technical challenges, especially in the major mining and industrial sectors.