An expert reviews cases of granting residency to foreign investors when establishing projects in Egypt

John Saad, an investment expert, reviewed the cases in which the government allows residences to be granted to foreign investors when they work in the Egyptian market.

John Saad said that the accommodation is granted in accordance with the rules and regulations issued by a decision of the Board of Directors of the Investment Authority after the approval of the Ministry of Home Affairs in view of the relative categories and weights of each of the company’s purpose. , capital, number of workers and location of activity.

John Saad, a real estate investment expert

The period of residence will be one year, renewable for another similar period in the event of seriousness at the commencement of the implementation of the project, and then renewed for other periods not exceeding five years each. period should not exceed the duration of the project.
John Saad explained that the provisions of the law include fair and equitable treatment for all investments made in the Arab Republic of Egypt.

The state also guarantees the foreign investor a treatment similar to that granted to the national investor, and an exception can be made by a decision of the Council of Ministers to determine preferential treatment for foreign investors in accordance with the principle of reciprocity.

The funds invested are not subject to any arbitrary measures or discriminatory decisions.

The state grants non-Egyptian investors residency for the duration of the project, without prejudice to the provisions of the laws governing it.

The state is obligated to respect and enforce the contracts it concludes, and the investment project established on the basis of fraud, deception or corruption will not enjoy the protection, guarantees, privileges or exemptions provided under the provisions of this law has not been enacted, and all this will be proved by a final court ruling issued by the competent court or by an arbitration award.

All decisions related to the affairs of the investment project must be reasoned, and the stakeholders will be informed. Investment projects can be nationalized.

It is not permissible to expropriate the funds of investment projects, except for the public benefit, and in exchange for a fair remuneration paid without delay in advance, and its value is equal to the fair economic value of the expropriated money on the day before the issuance of the expropriation decision, and the compensation is transferable without limitation.

The period of stay will not be less than one year and will not exceed the duration of the project

It is not permissible by administrative means to impose a waiver on these projects, and the waiver is not imposed on it, except in terms of a final judicial decision, and it is not permissible to seize it, except in terms of ‘ a court order or judgment, and all this is only in the cases specified in the law.

The funds of investment projects may not be seized, confiscated or frozen, except under a court order or a final sentence.

It is not permissible for any administrative body to issue general regulatory decisions that add financial or procedural burdens related to the establishment or operation of projects subject to the provisions of this Act, or to impose fees in exchange for services thereon, or to amend it, except after obtaining the opinion of the Board of Directors of the Authority and the approval of both the Board of Ministers and the Supreme Investment Board.

The administrative authorities may not cancel or suspend the licenses issued for the investment project or withdraw the immovable property granted to the project, except after the investor has been warned of the violations attributed to him, heard his position and gave him an appropriate period. to remove the causes of the offense.

The investor has the right to establish and establish the investment project, expand it and finance it from abroad without restrictions and in foreign currency

He will also have the right to own, manage, use and dispose of it, to reap profits and transfer them abroad, to liquidate the project, and all or part of the result of this transfer liquidation abroad without prejudice to the rights of third parties.

The state allows all cash transfer operations related to foreign investment to be freely and without delay available to its countries and abroad, in a freely convertible currency. The state also allows the transfer of the local currency into a freely usable currency without delay.

Filter

In the event of liquidation, the competent administrative authorities are required to notify the Authority and the company under liquidation of a declaration of its obligations within a maximum period of 120 days from the date on which the liquidator submitted a request to that effect. , accompanied by the necessary documents.

The expiration of this period without a declaration of these obligations will be considered as a waiver of liability for the companies under liquidation, without prejudice to the criminal and disciplinary liability of the person responsible for issuing a declaration that is inconsistent. is with the reality or what the expiration of the the aforementioned deadline without responding to the request.

Without prejudice to the provisions of laws, regulations and decisions governing imports, investment projects subject to the provisions of this Act may, by themselves or by third parties, import what they need in their establishment, expansion or operation of raw materials, production requirements, machinery , spare parts and means of transport suitable for the nature of their activity, without having to be entered in the register of importers.

The investment projects subject to the provisions of this Act have the right to export their products in person or through an intermediary without a license and without the need to register them in the register of exporters.

The investment project has the right to employ foreign workers within the limit of (10%) of the total number of workers in the project, and this percentage may be increased to no more than (20%) of the total number of workers in the project, in the event that it is not possible to employ national workers with the necessary qualifications

In some strategic projects of particular interest to be determined by a decision of the Supreme Investment Board, exceptions may be made to the aforementioned tariffs, provided that the training of national manpower is taken into account.

Foreign workers in the investment project have the right to transfer all or some of their financial obligations abroad.

General incentives

It is enjoyed by all projects subject to the provisions of this Act, with the exception of projects established under the free zone system, which:

Exemption from stamp duties, documentation fees and publicity, incorporation contracts for companies and enterprises, credit facility contracts and mortgages relating to their business, for a period of five years from the date of their registration in the trade register.

Exemption from the aforementioned taxes and fees are the land registration contracts required for the establishment of companies and institutions.

Companies and enterprises subject to the provisions of this Act shall be subject to the provisions of Section (4) of the Act governing Customs Exemptions provided by Act No. ) two percent of the value.

It applies to all imported machinery, equipment and apparatus necessary for its establishment, and this unified category also applies to all imports of companies and institutions working in public utility projects, including machinery, equipment and apparatus required for its establishment or completion.

Special incentives

Investment projects established after the application of this Act in accordance with the investment card will be granted a deduction from the net taxable profits as follows.

50% discount on investment costs of sector (A) (the economic zone of the Suez Canal – and other areas)

This includes the geographical areas that require the most development, according to the investment map issued by the Central Agency for Public Mobilization and Statistics.

a 30% deduction from the investment costs of sector (B) includes the rest of the republic according to the distribution of investment activities for investment projects.

Intensive use (the number of employees is not less than 500 Egyptian workers, according to what is determined in the form of social insurance – the cost of direct wages in it exceeds 30% of the total cost of operating it.

Small and medium enterprises, or those that depend on or produce new and renewable energy

National, strategic and tourism projects, electricity production and distribution, the automotive industry and the industries that feed it

Wood industries, furniture, printing, packaging, chemical industries, antibiotic industries, oncology medicine and cosmetics

Food industries, agricultural crops, recycling of agricultural waste, engineering, metallurgy, textile and leather industries

In all cases, the investment incentive must not exceed 80% of the paid-up capital until the date of commencement of the activity, in accordance with the provisions of the Income Tax Act promulgated by Act 91 of 2005.

The discount period will not exceed seven years from the date of commencement of the activity.

Investment costs (the costs required to set up the investment project, represented in property rights in addition to long-term liabilities, which are invested in the establishment and construction of tangible or intangible fixed assets, provided that their value is paid in cash and working capital).

Additional incentives

By a decision of the Council of Ministers, additional incentives may be granted to the projects as set out in Section 11 of this Act

Allow the establishment of special customs outlets for the investment project’s exports or imports, in agreement with the Minister of Finance

The state bears the value of what it costs the investor to link the utilities to the real estate designated for the investment project or part thereof, after the project has been operated.

The state bears part of the cost of technical training for workers

Half of the value of the land allocated to industrial projects will be refunded if production starts within two years from the date of handover of the land

The allocation of land free of charge for some strategic activities in accordance with the regulations laid down by law in this regard. It is also permissible, by a decision of the Council of Ministers, based on the proposal of the competent minister, to introduce other non-tax incentives whenever the need arises.

To allow companies and businesses additional incentives, they are required to start production or engage in the activity, as the case may be, according to the Authority-approved report – in addition to complying with various conditions.

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