Business Hub – Cairo:
The Council of Ministers issues decisions with new facilities for young investors
The Council of Ministers, during its session held on Thursday, August 11, 2022, agreed, on a number of decisions related to facilitating the business environment, and offering new facilities to investors, In order to support young investors, and startup companies, and entrepreneurship, Which contributes to encouraging investment opportunities. Those decisions included:
Approval of reducing the minimum capital of one-person companies to 1000 pounds instead of 50 thousand pounds
– Approval of the amendment of the executive regulations of the law of joint stock companies, partnerships limited by shares, limited liability companies, and one-person companies issued by Law No. 159 of 1981, which determines the minimum capital of a single person company upon incorporation of the company.
– The amendment approved by the Council of Ministers includes reducing the minimum capital value of a one-person company to (one thousand pounds) only instead of (fifty thousand pounds),
Approval of the conditions for considering the investment project as strategic or national
– The Council of Ministers approved a draft resolution defining the conditions for considering the investment project a strategic or national project, In applying the provision of Article (20) of the Investment Law promulgated by Law No. 72 of 2017.
– The draft resolution stipulated that in applying the provisions of Article (20) of the Investment Law, For the investment project to be considered a strategic or national project, it is required that it be established in one of these sectors: electricity and renewable energy sector, or the petroleum and mineral resources sector, or the transport sector, or industry, or the telecommunications and information technology sector, or the housing and utilities sector, or the tourism sector, or the youth and sports sector, or the military production sector. It must meet at least two of the following criteria: Which: To contribute to increasing exports by exporting at least a part (50%) of its products abroad annually, Within a maximum period of three years from the date of commencement of the activity, And to depend for its financing on foreign exchange transferred from abroad through an Egyptian bank in accordance with the provisions set forth in Article (6) of the Investment Law and Article (9) of its Executive Regulations, In accordance with the controls set by the Board of Directors of the Central Bank.
The criteria also included that the project aims to reduce imports, localize industry, and deepen the local component in its products. Provided that the proportion of the local component of raw materials and production requirements in its products shall not be less than (50%). Provided that this percentage is calculated by deducting the value of the imported components from the cost of the product. And that the project is to be located in one of the areas most in need of development specified in Cabinet Resolution No. 7 of 2020.
The criteria also included that the project contribute to the transfer and settlement of modern and advanced technology and technologies to Egypt. Supporting innovation, development and scientific research, As estimated by the Minister concerned with Communications and Information Technology, or the minister concerned with industry affairs, or the Minister in charge of Scientific Research Affairs, Depending on the circumstances, The project should be one of the projects that aim to secure strategic commodities for the country and limit their import. It should be a labor intensive project, In accordance with the concept contained in Article (11) of the Executive Regulations of the Investment Law, In addition, the project will contribute to reducing the environmental impact, reducing heat and gas emissions, and improving the climate. As estimated by the Minister concerned with Environmental Affairs.
– The decision also stipulated the need to take into account the amendment of the stipulated conditions and criteria and their annual update, or whenever needed, This is in light of the state’s economic development plan.
– The CEO of the Investment Authority indicated that this decision comes as a continuation of a series of measures recently issued with the aim of improving the investment climate and creating a business environment. To keep pace with the aspirations of investors and contribute to attracting more local and foreign investments in areas that are in line with the state’s economic development plan.
Approval of facilities for obtaining industrial land. Extension of work by installments system
– The Council of Ministers approved, during its meeting today, headed by Dr. Mostafa Madbouly, At the government headquarters in the new city of El Alamein, on a set of decisions that would support the industry sector, and provide more facilities for this important sector, To push forward the wheel of production and development, These decisions included approving the results of the work of the committee formed by Prime Minister Decree No. 2067 of 2022, and the committee’s conclusions regarding the re-pricing of industrial lands at the level of the Republic. As a previous step in preparation for announcing the offering of these lands to investors.
– The Joint Pricing Committee, formed by the Ministries of Finance and Local Development, and the General Authority for Industrial Development, and the New Urban Communities Authority, The General Authority for Investment and Free Zones, Conducting evaluations and estimating the price per square meter for lands and industrial areas in various governorates and new cities, According to a new methodology that ensures that the price per meter is according to the cost of utilities, Which contributes to reducing the prices of industrial land to be an attractive element for investors.
– The results of the committee’s work included defining the proposed mechanism for disposing of industrial lands using ownership or usufruct regulations. As well as proposing incentives for industrial lands in Upper Egypt, New cities, fourth-generation cities and youth workshops, To ensure the optimum developmental use of industrial lands, This is within the framework of the state’s strategy that aims to develop and raise economic growth rates in the governorates of Upper Egypt. To provide direct and indirect job opportunities for the youth of Upper Egypt governorates, improving the level of economic, social and environmental life of its inhabitants, This is in addition to re-pricing the industrial zones in the new cities in Upper Egypt, as well as the fourth-generation cities and youth workshops in the new cities. for the various parts of the state.
The Council also agreed to extend the system of installments for the price of industrial lands at an interest rate of 7% annually instead of the interest determined by the Central Bank of Egypt. It is valid for a period of three years. starting from the end of the previous period, to encourage industrial development, And in support of the expansion of the establishment of more new industrial complexes.