1970-01-01 08:33:28
Section 1: General Provision:
Article 1:
The provisions of this law shall apply to all companies and establishments of any legal structure which are established following the date of enforcement of the law, whose activities include any of the following:
11 Reclamation and cultivation of barren and desert lands or either of them,
12 Animal, poultry and fish production,
13 Industry and mining:
14 Hotel, motels, hotel flats, tourist villages and tourist transportation,
15 Refrigerated transportation of goods, refrigerators for the preservation of agricultural crops and products, manufactured products, foodstuffs, container depots and grain silos,
16 Aviation transportation and directly related services,
17 Overseas maritime transport,
18 Oil services in support of digging and exploration operations an the transport and delivery of natural gas,
19 Housing projects whose units are to be leased unfurnished for non-administrative purposes,
20 Infrastructure operations concerning drinking water, sewage, electricity, roads and communications,
21 Hospital, medical and therapeutic centres which offer 10% of their service capacity free of charge,
22 Financial lease,
23 Underwriting subscriptions to securities,
24 Venture capital,
25 Production of computer software systems,
26 Projects funded by the Social Fund for Development,
The Cabinet of Ministers may add other fields to the above provided such are in the interests of the country* (Please refer to Article 1 of the Executive Regulations for Law No. 8 of 1997 thereinafter to follow up the new activities that have been licensed in this concern, from 1 April 2000).
The Executive Regulations of this Law shall determine the conditions and limits of the above fields.
Article 2:
Companies and establishments that carry out several activities, shall only enjoy investment guarantees and incentives, including tax exemptions, in respect of activities whining the fields set out in the previous article and other fields which may be added by the Cabinet of Ministers,
Article 3:
The provisions of this Law shall not affect any tax privileges or exemptions or other better guarantees or incentives provided for under other legislation or agreements.
Article 4:
The competent administrative authority shall verify the Articles on Incorporation and Statutes of companies. The Article of Incorporation and Statutes of companies shall specify the names of the contracting parties, the company's legal form, name, activities, duration, capital, percentages of Egyptian and non-Egyptian participation, methods of subscription, and the parties’ obligations and equity.
The forms for the Articles of association of Joint Stock Companies, Partnerships, Limited by Shares and Limited Liability Companies shall be in accordance with models and forms to be issued by a decree of the Prime Minister.
The parties' signatures on the Articles of Association of companies, whatever their legal form, shall be legalized in consideration of notarisation fees equal to a quarter per cent of the paid up capital, provided that such fees shall not exceed five hundred Egyptian pounds if legalized in Egypt, or the equivalent in foreign currency if legalized by the Egyptian Authorities abroad.
The competent administrative authority shall issue, a decree licensing the incorporation of companies established according to the provision of this Law and enjoying the privileges set out herein, and such companies shall have their juridical entity as of the date of registration in the Commercial registry. The Statutes of a company and its Articles of Incorporation shall be published in accordance with the rules and procedures to be determined by the Executive Regulations of this Law.
The above provision shall apply to each amendment made to such Company's Statutes.
Article 5:
The administrative authority; specified by the Executive Regulations of this Law, shall allocate land owned by the State or public entities to companies and establishments as required and shall conclude their respective contracts on behalf of the concerned authorities. Such authorities shall provide the said administrative authority with all maps and data concerning the lands available for this purpose, together with the terms and conditions in respect of concluding the contracts related thereto.
The said administrative authority shall obtain from the concerned authorities, on behalf of the owners of the companies and establishments, any licenses required for the establishment, management and operation of such companies and establishments.
Article 6:
A request for bringing a criminal action in connection with crimes prescribed under the provisions of Article 124 of The Customs Law No.66 of 1963,Article 191 of the Income Tax Law No.157 of the 1981, Article 45 of the General Sales Tax Law No.11 of 1991 and Article 9 of Law No.38 of 1994 concerning the Regulation of Dealing with Foreign Currencies, shall be submitted after consulting the competent administrative authority in case the person accused of committing the crime is affiliated to one of the companies or establishments subject to the provisions of this Law.
The competent administrative authority shall provide its opinion there in within fifteen days from the receipt of the letter of consultation; otherwise a litigation request shall be permitted.
Article 7:
Disputes concerning the implementation of Law may be settled in the manner to be agreed upon with the concerned investors. The concerned parties may agree to settle such disputes according to the terms and conditions of treaties in force between the Arab Republic of Egypt and the country of the concerned investor or according to the provisions of the Agreement on Settlement of Disputes in respect of investments concerning one country and citizens of another country, to which the Arab Republic of Egypt adhered by virtue of Law No. 90 of 1971, as applicable, or according to the provisions of the Law No. 27 of 1994 concerning Arbitration in Civil and Commercial Matters, also agreement concerning settling such disputes may be reached by means of arbitration before the Cairo Regional Centre for International Commercial Arbitration.
Section 2: Investment Guarantees
Article 8:
Companies or establishments shall not be nationalized nor shall their property be confiscated,
Article 9:
Administrative Guardianship shall be imposed on companies or establishments, nor shall their property and funds be distrained, seized, retained in protective custody, blocked or confiscated,
Article 10:
No administrative authority shall interfere in respect to the pricing of the companies and establishments’ products, or in determining their profits
Article 11:
No administrative authority shall cancel or suspend, in whole or in part, a license granted to a company or establishment for the use of real estate, except in case of a breach of the license conditions.
A decree suspending or cancelling a license shall be issued by the Prime Minister, upon the proposal of the competent administrative authority. The party concerned shall have the right to contest such decree before the administrative courts within thirty days from the date of notifying it to him or the date he becomes aware of such decree.
Article 12:
The companies and establishments shall have the right to posses and own lands for building and built real estate as required for exercising their activities and to expand the same, regardless of the nationality or domicile of the partners or the percentage of their shareholding,
Article 13:
Without prejudice to the provisions of Laws, regulations and decrees concerning import activities, companies and establishments shall have the right to import by themselves or via third parties, without registration in the Register of Importers, whatever they require for their establishment, expansion or operations, such as production requirements, materials, machines, equipment, spare parts and means of transport suitable for the nature of their activities. The companies and establishments shall also have the right to export their products by themselves or through third parties without registration in the register exporters.
Article 14:
Joint Stock Companies, Partnership Limited by Shares or Limited Liability Companies whose activities are within the fields set out in Article 1 of this law shall not be subject to the provisions of Articles 17,18,19,41,77 Clause (1) & (4), 83,92 and 93 of the Law No. 159 of 1981 concerning Joint Stock, partnerships limited by Shares and Limited Liability.
Founders’ shares and stocks may be traded during the first two financial years of the company subject to the approval of the Prime Minister of his authorized representative.
With regard to foregoing companies, the competent administrative authority shall replace the Companies Department in applying Law No.159 of 1981, referred to above, and its Executive Regulations.
Joint Stock Companies shall not be subject to or governed by Law No.73 of 1973 in respect of specifying the conditions and procedures for electing the workers’ representatives to the boards of public sector units, Joint Stock Companies, private societies or establishments.
The Company's Statutes shall set out the workers’ role concerning participation in its management in accordance with the Executive Regulations of this Law.
Article 15:
Joint Stock Companies shall be exempted from applying the provisions of Law No.113 of 1958 concerning appointment to positions in Joint Stock Companies and Public Enterprises. They shall also be exempted from applying the provisions of Article 24 of the Labour Law No. 137 of 1981.
Section 3: Investment Incentives:
Chapter 1- Tax Exemption:
Article 16:
Profits of companies and the partners' shares in such profits shall be exempted from Tax on the Revenues of Commercial and Industrial Activities, or the Tax on Stock Companies profits, as applicable, for a period of five years, starting from the first fiscal year following the beginning of production or exercising of activities.
The exemption period shall be for ten years in respect of companies and establishments established in new industrial zones and the new urban communities as well as the remote areas as determined by decree of the Prime Minister.
The same provision shall apply to new projects financed by the Social Fund for Development.
Article 17:
Profits of Companies and establishments maintaining their activities outside the Old Valley as well as partners’ share, whether the establishment was originally established outside the Old Valley or transferred therefrom, shall be exempted from the Tax on Revenues of commercial and industrial Activities or the tax on Stock Companies Profits, as applicable, for a period of twenty years, starting from the first fiscal year following the beginning of production or exercise of activities. A decree of the Cabinet shall be issued determining the areas to which this provision shall apply
.
Article 18:
Companies, establishments and projects financed by the Social Fund for Development, and existing at the time of this law comes into force, which carry out activities within the fields referred to in Article 1 of this Law shall be entitled to complete the exemption periods set out in the two previous articles if their current prescribed exemption periods have not expired.
Article 19:
In applying the provisions of the previous Articles, the first year of exemption shall include the period from the date of commencement of production or exercise of activities, as applicable, up to the end of the following fiscal year. The company or the establishment shall notify the component administrative authority of the date of starting production or exercise of activities within one month from such date.
Article 20:
The Companies and establishments' Articles of Incorporation as well as the loan and mortgage contracts related to their activities shall be exempted from Stamp Duty, notarisation and registration fees for a period of three years from the date of registration in the Commercial Registry.
The registration of land contracts necessary for establishment of the companies or establishments shall also be exempted from the aforementioned tax and fees.
Article 21:
An amount equivalent to a percentage of the paid-up capital, to be determined in accordance with the Central Bank of Egypt's Lending and discount rates for the fiscal year subject to accountability, shall be exempted from the Tax on Profits of Stock Companies, provided the company is a joint stock company whose stocks are listed with one of the stock exchanges.
Article 22:
Returns on bonds, finance deeds, and income from other similar securities issued by joint Stock Companies shall be exempted from the Tax on Revenues of Movable Capital, provided such are issued for public subscription and are registered with one of the stock exchanges.
Article 23:
The provision of article 4 of Law No.186 of 1986 regulating customs exemptions, regarding collection of customs tax at a unified rate 5% of the value shall apply to the companies and establishments in respect of machines, equipment, and instruments they import provided that such machines, equipment, and instruments are necessary for their establishment.
Article 23 Bis:
Expansions approved by the administrative Authority shall be exempted from the stipulated tax in article (16) of this law for five year.
The exemption set out in article 20,23 of this law shall apply on these expansions:
11 It is meant by expansion the increase in capital to be used in adding new assets aiming at increasing the project productivity.
12 Executive Regulations shall determine the kinds of Assets, rules and parameters taken up in calculating this increase.
Article 24:
Profits resulting from the merger, division or change of legal form of the companies shall be exempted from any taxes and duties payable in connection therewith.
Article 25:
Merging and merged companies or establishments, and companies or establishments which are divided, or whose legal form is changed shall continue to enjoy the exemptions stipulated for them before such merger, division, or change of legal form until their respective exemption periods expire. The merger, division or change of the legal form shall not result in any new tax exemptions
Article 26:
The value resulting from the evaluation of in-kind shares incorporated in a joint Stock Companies, partnership Limited by Shares, or Limited Liability Companies, or comprising part of a capital, increase, shall be exempted from the Tax on Revenues of Commercial and Industrial Activities or the Tax on Stock Companies' Profits, as applicable.
Article 27:
The Executive Regulations of this Law shall determine the conditions, rules and procedures regulating the tax exemptions to be enjoyed automatically without administrative approvals, provided that such exemptions shall be withdrawn in the event of any violation of such conditions and rules.
Withdrawal of exemptions shall be by a decree of the Prime Minister upon the proposal of the competent administrative authority. The concerned party may object to such decree before the administrative courts, within thirty days from the date such decree is notified to the party, or becomes aware of it
Chapter 2: Assignment of Land:
Article 28:
A degree of the Cabinet of Ministers may be issued upon the proposal of the concerned Minister to assign state-owned land, or land owned by public bodies, to companies and establishments incorporated of Article 1 above, free of charge and in accordance with the procedures set out under the provisions of the Executive Regulations of this Law
Chapter 3: Free Zones:
Article 29:
A Free Zone, which encompasses an entire city, shall be established by a law. Public Free Zones shall be established by decree of the Cabinet of Ministers upon the proposal of the competent administrative authority, for the establishment of licensed projects incorporated under any legal form.
A decree of the competent administrative authority may be issued concerning the establishment of private Free Zones each of which shall be limited to a single project, if the nature of such project so necessitates.
The competent administrative authority may approve changing the status of a project established inside the country to a private Free Zone in accordance with the parameters to be determined by the Executive Regulations of this Law.
A decree issued for the establishment of a Free Zone shall include a description of its location and borders.
A public Free Zone shall be managed by a Board of Directors and its Chairman to be formed and appointed respectively, by a decree of the competent administrative authority.
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Article 30:
The competent administrative authority shall be responsible for establishing the policy to be followed by the Free Zone. It shall have the power to issue whatever decisions it considers necessary for realizing the purpose for which such zones were established, and in particular the following:
11 The systems and regulations necessary for administrating the Free Zones,
12 Setting the conditions for granting the licenses and occupying the lands and realties, the rules governing the entry and exit of goods, the provisions for recording them, charges collected for occupying the places they are deposited, and examination of documents as well as verification procedures in connection therewith, and the system concerning the control and security of such zones, in addition to collecting dues payable to the State.
Article 31:
The Board of Directors of a Public Free Zone shall be responsible for licensing the establishment of projects therein. Licensing a project to exercise an activity shall be by decree of the Chairman of the Board of Directors of the Zone.
The license shall include the purposes for which it is granted, its duration, and the amount of any financial guarantee payable by the licensee. The license shall not be assigned, wholly or partially, except with the approval of the issuing authority.
A refusal to grant a license or its assignment shall be issued for justifiable reasons. In such case, the concerned party may complains against such refusal or disapproval, as the case may be, to the competent administrative authority in accordance with the rules and procedures stipulated by the Executive Regulations of this Law.
The licensee shall not enjoy the exemptions or privileges stipulated by this law except within the limits of the purposes indicated in the license.
Article 32:
Subject to the provisions prescribed in the laws and regulations prohibiting dealings in certain goods or materials, goods which are exported abroad by Free Zone projects or imported in order to maintain their activities shall not be subject to the rules concerning imports and exports or customs procedures for imports and exports, neither shall such goods be subject to Customs Tax, General Tax on Sales on any other kind of tax or duties.
All instruments, equipment, machines, and essential means of transport, other than passenger cars, which are necessary for maintaining the licensed activities of a project within the Free Zones shall be exempted from Customs Tax, General Tax on Sales and any other tax or duties.
The Executive Regulations of this Law shall determine the procedures for the transport and insurance of goods from the point of commencement of unloading operations until their arrival at the Free Zone and vice versa.
The competent administrative authority shall have the power, in accordance with the provisions of the Executive Regulations of this Law, to allow the entry of local and foreign goods, materials, spare parts, and raw materials, owned by the project or by third parties, from inside the country to a Free Zone on a temporary basis for repair or to carry out industrial processes on such goods before return to inside the country, and such goods or materials shall not be subject to the applicable import rules.
Customs Tax shall be collected on value of repairs according to the provisions of the Customs Law.
The provisions of Article 33 below shall apply to industrial processes.
Article 33:
Import into the country from the Free Zones shall be in accordance with the general rules concerning import from abroad, and Customs Tax shall be payable on goods which are imported from a Free Zone to the local market as though they were imported, from abroad.
With regard to the customs treatment for products imported from Free Zone projects which include local components and foreign components, Customs Tax shall be levied on the value of the foreign components at the prices prevailing at the time their exit from the Free Zone into the country, provided that the total amount of tax due on the foreign components shall not exceed the tax payable for similar finished products if they were imported from abroad.
The Customs Tax treatment for foreign components shall be based on their condition upon entry into the Free Zone, regardless of the operating or assembly costs in the Free Zone.
In respect of freight costs, the Free Zone shall be considered the country of origin in respect to products manufactured within it.
Article 34:
The head of the Free Zone Customs Department, shall notify the head of the Free Zone in respect of any unjustified discrepancies whether such represent an excess or a deficit in respect to amounts indicated in the bill of lading concerning the number of parcels and their contents, preserved or bulk goods, in case such goods are received in the name of the Free Zone.
A decree of the competent administrative authority shall be issued regulating the responsibility for the cases set out in the previous clause and shall determine the tolerance rates permitted in such regard.
Article 35:
Projects established in Free Zones and the profits as distributed by them shall not be subject to the provisions of Egyptian tax and duty laws prevailing in Egypt.
Such projects, however, shall be subject to an annual fee amounting to 1% (one per cent) of the value of commodities entering the Free Zone for storage in respect of warehousing projects, and 1% (one per cent) of the value of commodities on their exit from the Free Zone in respect of manufacturing and assembly projects. Goods in transit with a specified destination shall be exempted from this duty.
Projects maintaining activities that require no entry or exit of goods shall be subject to an annual fee amounting to 1% (one per cent) of their total revenue, to be based on accounts approved by a chartered accountant.
In all cases, projects shall pay a service charge as determined by the Executive Regulations of this Law.
Article 36:
Companies maintaining their activities in public Free Zones shall not be subject to the provisions of Law No.73 of 1973 or Law No. 159 of 1981.
Article 37:
Maritime transport projects established in Free Zones shall be exempted from the terms and conditions concerning the nationality of the ship owner and its crew, as stipulated by the Maritime Trade Code, and Law No.84 of 1949 concerning the registration of merchant vessels.
Ships, which are owned by these projects, shall not be subject to Law No.12 of 1964 concerning the establishment of the Egyptian General Organization for Maritime Transport.
Article 38:
The licensee shall be obliged to insure all constructions, machines and equipment against all accidental risks. The Licensee also shall remove such construction, machines and equipment at his own cost within the period determined by the Board of Directors of the Free Zone, according to rules to be prescribed by the competent administrative authority.
Article 39:
Entering or residing in the Free Zones shall be in accordance with the conditions and terms to be stipulated by the Executive Regulations of this Law.
Article 40:
The provisions of Law No.173 of 1958 concerning the obligation to obtain a work permit before working with a foreign entity, and Law No.231 of 1996 concerning certain provisions regarding the work of Egyptians with foreign entities, shall not apply to Egyptian workers employed by Free Zone projects.
Article 41:
No person shall permanently exercise a trade or profession in a public Free Zone, for his own account except after obtaining a permit in connection therewith from the Chairman of the Board of Directors of that Free Zone according to the terms and conditions to be stipulated by the Executive Regulations of this Law and after payment of the relevant fees, which shall be determined in such Executive Regulations and which shall not exceed Five Hundred Egyptian pounds per year.
Article 42:
Employment contracts concluded with employees in the Free Zones shall be drawn up in four copies, of which one copy shall be handed to each of the parties, a third copy shall be deposited with the Free Zone Labour office. If the contract is drawn up in a foreign language, an Arabic translation must be attached to the last two copies referred to above.
Article 43:
Projects set up in public Free Zones shall not be subject to Law No.113 of 1958, or to the provisions of Article 24 and Chapter 5 of part III of the Labour Law.
The Board of Directors of the competent administrative authority shall issue the rules regulating the personnel affairs of such projects.
Article 44:
The provisions of Social Insurance Law No.79 of 1975 shall apply to Egyptian workers employed in projects maintaining activities in the Free Zone.
Article 45:
Whoever violates the provisions of Article 41 of this Law shall be subject to a fine of not less than Two Thousand Egyptian Pounds and not more than Five Thousand Egyptian Pounds.
No criminal action shall be brought concerning such crimes unless it is based upon a written request from the competent administrative authority.
He said authority may agree to settle with the violator during its examination of the supported violation, in return for payment of an amount equivalent to the minimum limit of the potential fine, and such settlement shall end the criminal action
Article 46:
The provisions of Article 8,9,10,11 and 20 of this Law shall apply to investment in the Free Zone.
Prime Minister’s Decision No.2108 of 1977
As Amended By Decisions No. 1585 of 1998 & No. 740 of 2000
Concerning
The Executive Regulations of the Law on Investment Guarantees & Incentives
Part 1: Fields of Investment: Conditions and Limitations
Article 1
Activities in the fields stated in Article 1 of the Law on Investment Guarantees and Incentives referred to above, shall be implemented subject to compliance with conditions and limitations as explained there-under:
1 Reclamation and cultivation of barren and desert lands or either of them:
a) Reclamation of lands and installation on infrastructure facilities that render the same cultivable,
b) Cultivation of reclaimed land. Subject to he condition, in both cases, that the land in question should have been already earmarked for reclamation and cultivation and subject to the condition, in the case of cultivation, that advanced irrigation methods, not irrigation by submerging, be used.
2 Animal, Poultry and Fish Production:
c) Breeding of all kinds of red meat cattle, whether for the purpose of raising new breeds or for dairy products or for fattening,
d) Breeding of all kinds of white meat poultry, wether for the purpose of raising new breeds or for hatching or for egg production or for fattening,
e) Fishing and development of fish-breeding ponds.
3- Manufacturing and Mining:
a) Industrial activities as engaged in the transformation of substances and raw materials and in changing their forms by blending, mixing, treating or shaping them, and packaging them, as well as assembling parts and components, and mounting them for production of intermediary or end products. This shall include petroleum refining, the preparation and treatment of petroleum derivatives and products; it shall not include industries of cigarettes, raw tobacco, molass-treated tobacco or snuff neither shall it include any kind of alcoholic beverages or wines or liquors.
b) Designing the industrial machines, equipment and production lines and manufacturing the equipment and production lines, and managing the performance and restructure of factories, which comprises the following:
- Engineering design works for equipment, production lines and factories,
- Preparing the models and moulds for the machines and products and their manufacture and marketing,
- Manufacturing the equipment and production lines,
- Managing the performance for industrial projects, utilities projects and the technical and administrative restructure for factories
c) The full array of cinema industry activities including the construction, or renting and running of motion picture studios and laboratories and movie theatres, running being understood as covering shooting, developing, printing, production, screening and distribution, provided that such business has to be exercised through a joint stock company or a big venture of which the minimum working capital is not less than LE200 million,
d) Activities connected with exploring mining ores and metals and with extraction cutting and preparation thereof, but shall not include sand and pebbles quarries.
3- Bis)** Preparation and development of selected industrial zones:
Preparation and development of new industrial zones, East of the Tafriya (East Port Said) and North West of the Suez Gulf, including levelling the land and establishment of the internal infrastructure, aw well as providing it with the utilities and all services necessary therefore, in order to equip them for the different industries and dividing them into plots as well disposing thereof
4- Hotels, motels, hotel apartments, tourist villages and tourist transportation:
a) Stationary and floating hotels and motels, hotel apartments and suites, tourist villages and complementary or related services, recreational, sports, commercial and cultural activities, as well as completing and expanding the respective establishments. Hotels, motels, hotel apartments and suites and tourist villages are subject not to be less than three- star level and the total areas of sold units shall not exceed half the total constructed areas.
b) All land, Nile, sea and air means of tourist transport.
5- Refrigerated transportation of goods, refrigerators for the purposes of storing crops, manufactured products and foodstuffs, container stations and grain silos:
a) Transport of cold or frozen products, cold stores for preservation of agricultural products, industrial products, foodstuffs, as well as for refrigeration and freezing them,
b) Containers operation and handling stations,
c) Grain-silos. The aforesaid activity includes all related loading and unloading activities.
6- Air transport and directly related services:
a) Regular and chartered air transportation for passengers and goods,
b) Construction, equipping, operation, management, maintenance and exploitation of airports and landing pads or parts thereof, operation, management, maintenance and exploitation of existing airports, and landing pads and other related air transport services including maintenance, repair, catering and training,
9- Overseas maritime transport:
The transportation of materials, goods and passengers beyond territorial waters by means of ships and other maritime means of transport such as tankers, steamer and ferries.
8- Petroleum services in support of drilling, exploration as well as gas transport and delivery:
a) Provision of petroleum services in support of drilling and exploration including:
- Oil- well maintenance and enhancing,
- Maintenance of drilling equipment & oil pumps,
- Drilling water wells and shallow wells related to oil industry,
- Civil work complementing drilling and maintenance operations,
- Treatment of surfaces against deposits,
- Down hole operation related to cover pipes and production tubes,
- Services related to exploration.
b) Establishment or management of natural gas reception stations or for preparing it for distribution, or extending gas networks from production locations to consumption locations being cities, villages and development zones by means of specialized carriers or pipes- the transportation of petroleum is excluded- projects for the production of petrochemicals and the extraction of butagas and propane from gas.
9- Housing complexes for the purpose of full, unfurnished lease for non-commercial uses (subject to the number of housing units being not less than fifty, whether in one or more complexes)
10 Infrastructure operation including potable water, sewage, electricity, roads, communications and under- ground multiple story garages.
a) Construction or operation and management of potable water desalination and filtering plants, distribution systems and transportation,
b) Construction or operation and management of domestic or industrial wastewater drainage and treatment and related connections
c) Design, establishment, management, operation or maintenance of electric generating stations of all different resources and their distribution networks,
d) Building, management, exploration and maintenance of free roads, highways and main roads,
e)1- Establishment, operation or management of wired and wireless communication stations and networks, and satellites after obtaining the license from the competent authorities, in accordance with the applicable laws. This activity shall not comprise broadcasting and television,
e Establishment of audio, video and written information networks, and the provision of value added services after obtaining license from the competent authorities, in accordance with the applicable laws. This activity shall not include mobile telephone networks,
f Design, establishment, management and operation or maintenance of underground metro lines or parts thereof and management and operation or maintenance of the lines already existing out of the said lines,
f)2- Design, establishment, management and operation of the surface metro lines whether between or inter-cities,
f)2- Design, establishment, management and operation of the automobile tunnels,
f)2- Establishment, operation and management of under-ground multiple storey garages on the basis of B.O.T system.
11- Hospitals. Medical and therapeutic centres that offer 10% of their capacities free of charge:
a) Specialised, integrated or general hospitals along with related indoor therapeutic or service activities,
b) Medical and therapeutic centres.
It is conditional that the hospital or the centre shall pfer free of charge, 10% of beds occupied per annum in the case of a hospital, and 10% of the cases being attended to with medical or therapeutic services in the case of a medical or therapeutic centre.
12- Financial Lease:
Activities stipulated in Article 2 of Law No.95 of 1995 referred to above and subject to terms and conditions stated herein
13- Underwriting of Subscription to securities:
Under writing of entire or partial security issues as the case may be after bids have been made by the public, in compliance with terms and conditions stated in the approved public subscription prospectus. The party committed to underwriting subscription to securities shall re-float the securities without compliance with the normal value of the issue.
14 Venture Capital:
Investing in projects or firms for promotion with the aim of transforming them into joint stock companies or partnerships limited by shares in case such projects and firms are short of financing.
15- Production of computer programs and systems:
Designing and producing computer software and systems, and their different types of applications as well as operating them and providing training therein.
16- Social Fund for Development- funded projects:
All projects in the fields of small-scale, ancillary or feeding industries for which the majority of financing is provided by the Social Fund for Development.
17- Development of new urban zones:
Planning and establishment of new cities and industrial zones that have been promulgated by a decree of the Cabinet of Ministers, and their equipment with all utilities and services.
18- Software designing and producing the electronic content:
14 Design and development of the software, the operating systems, the compact systems and the entry of data into computers by electronic means, establishment of data bases and electronic information systems, and producing the electronic content of all its different audio, video and data forms.
19- Establishment and management of technological zones:
Establishment and management of technical zones, practical incubators and training centres for preparing researchers, transfer of technology and provision of services related thereto.
20- Credit Classification:
The evaluation of financial status of establishments and classifying them on a credit basis and providing information on them at the financial markets, according to the controls and provisions as issued by a decree of the competent minister.
21 Deductions:
Undertaking the business of purchase and liquidation of debts of small and medium size companies and establishment, according to the controls and provisions as issued by decree of the competent minister.
22- Establishment, management and operation or maintenance of river transportation for groups within and between new cities and urban communities
23 The management of performance for industrial projects and utilities projects.
Works of the management of performance for industrial projects and utilities projects of all their different activities.
24 The gathering of rubbish, and wastes of production and services activities and their treatment:
Companies working in the field of gathering the rubbish, wastes of the production and services activities and their treatment, according to the controls and provisions as issued by a decree of the competent authority.
Article 2:
Any activity that is effected in any of the fields stated in the preceding Article shall complete all procedures required for permits related to the nature and location of activity as may be stipulated in relevant laws, regulations and decisions.
Article 3:
The purpose of the company or firm may cover one or more of the fields stated in Article 1 of the present Regulations.
Article 4:
A company or a firm that desires to enter into an activity in the fields stated in Article 1 of the present Regulations in any of North or South Sinai Governorates has to notify
The General Authority for Investment and Free Zones in advance.
Part 2: Incorporation of Companies
Section1: Procedures for Incorporation. Companies with activities confined to fields in article 1
Incorporation of Companies
Article 5:
The General Authority for Investment and Free Zones shall review the Articles of Incorporation and Statutes of a company whose activities shall be confined to one or more of the fields stated in Article 1 of the present Regulations at a request to be made by the promoters, partners or their representatives.
Article 6:
An application for reviewing Articles of Incorporation and Statutes of a Joint Stock Company or a Partnership Limited by Shares, or the Statutes of a Limited Liability Company, shall be submitted to the General Authority for Investment and Free Zones along with a copy of Articles of Incorporation and/or Statutes, as the case may be, on forms defined by Prime Minister's Decision.
Article 7:
An application for reviewing a partnership agreement of a simple or limited partnership shall be submitted along with a copy of the partnership agreement, stating the following:
1 Partnership's purpose and field of activity,
2 Names of the partners, their domiciles, nationalities and capacity as partner with unlimited liability, limited partners or sleeping partners,
3 Partnership's name, its title, head office address in Egypt and branch addresses,
4 Partnership's paid-in capital, its type, equities and currencies in which capital is contributed to,
5 The stated term of the partnership,
6 Partnership's form of management,
7 Profit distribution/Loss sharing, and
8 The provisions of dissolution and liquidation of the company and the reasons for its termination.
Article 8:
After review is completed, Attestation of promoters or partners, as the case may be, is made and after the company has submitted a certificate from an authorized bank that is registered with the Central Bank of Egypt stating that at least one fourth of the company's cash capital- in the cases of a Joint Stock Company and a Partnership Limited by Shares- or the full amount of capital- in the case of a limited Liability Company- in the name of the said company as one under formation, a license to incorporate a company, stating the particulars of the same, shall be issued by the General Authority for Investment and Free Zones.
Article 9:
Having obtained an incorporation license, a company shall be entered in the Commercial Registry. A company's representative shall submit a copy of the Commercial Registry's entry to the General Authority for Investment and Free Zones.
Article 10:
Decisions on incorporation licenses along with Article of Incorporation and Statutes shall be published in bulletins issued by the General Authority for Investment and Free Zone at the expenses of the licensed companies.
Article 11:
Provisions stipulated in this section shall apply to all amendments of the Statues of a company.
Section 2: Companies with Multiple Purposes and Activities
Part 3: Sole Proprietorships.
Part 4: Employees Participation in the Management of Joint Stock Companies.
Part 5: Automatic Tax Exemptions:
Part 6: Assignation of Land:
Part 7: Free Zones
Law No.8/1997 on Investment and Incentives
Executive Regulations: