Law No. 72 of 2017

"Facilitation of Licensing Law": A Cornerstone for Investment Climate and Driving Development in Egypt

In recent years, the Arab Republic of Egypt has witnessed a radical transformation in its economic vision, with an unprecedented focus on enhancing the investment climate and developing the industrial sector. This attention wasn't just slogans; it materialized into a package of legislative and procedural reforms aimed at creating an attractive environment for both local and foreign capital. The issuance of Law No. 72 of 2017 concerning the Facilitation of Procedures for Granting Licenses to Industrial Establishments stands as a landmark and cornerstone in this journey. It addresses chronic challenges that hindered the growth of the industrial sector, opening vast horizons for it to become a true locomotive for comprehensive and sustainable economic development.

Before this law, industrial investors faced a complex bureaucratic maze characterized by slow procedures, multiple involved entities, and conflicting jurisdictions. This wasted significant time, effort, and money, deterring many investors or pushing them to seek opportunities in more flexible environments. Law 72 of 2017 came to put an end to this suffering, establishing a new legal framework that allows factories to operate quickly and with minimal administrative costs, while maintaining high standards of quality, occupational safety, public health, and environmental protection.

Strategic Vision and Objectives of Law 72 of 2017: Towards a Prosperous Egyptian Industry

Law 72 of 2017 didn't emerge from a vacuum; it was the result of an in-depth study of the challenges facing the industrial sector and an ambitious vision for its future. Its strategic objectives revolved around specific points aimed at fundamentally improving Egypt's investment environment:

1. Simplifying and Facilitating Licensing Procedures: Eliminating Bureaucracy: Complex and routine administrative procedures were the biggest obstacle for investors. The law significantly reduced the number of approvals required from multiple entities and adopted a clear and simplified licensing system. This simplification means a tremendous reduction in required paperwork and steps to be taken, saving valuable time for investors that can be utilized to commence production and operation.
2. Reducing the Timeframe for Obtaining Licenses: The Speed Factor: The lengthy duration for obtaining licenses was a primary reason for investor hesitation. The law stipulated clear and binding timeframes for examining applications and responding to them, drastically shortening the time to issue a license. This speed in completion translates into faster operation and, consequently, quicker returns on investment.
3. Activating the Notification Licensing System: Supporting Small and Medium Enterprises (SMEs): This system is a qualitative leap. It allowed low-risk industrial establishments (which constitute the majority of SMEs) to immediately start operations upon submitting a "notification" to the Authority, without waiting for prior approvals. This indirect support for SMEs contributes to their integration into the formal economy, their growth, and the creation of more job opportunities.
4. Granting the Industrial Development Authority (IDA) a Leading Role: Unifying Authority: Before the law, investors had to navigate various ministries and government entities to obtain necessary approvals, leading to overlapping jurisdictions and responsibilities. The law designated the IDA as the "single window" and the sole authority responsible for issuing and renewing industrial licenses. This unification eliminates overlap and conflict, simplifying procedures and making them more efficient.
5. Encouraging Industrial Investment and Attracting Capital: Building Trust: By removing bureaucratic obstacles and facilitating procedures, Egypt's industrial investment environment became more attractive and trustworthy. This positive climate encourages local and foreign investors to inject more capital into the vital industrial sector, which is a driver of economic growth and value creation.
6. Improving the Business Environment and Raising International Rankings: Egypt's Economic Image: The law directly contributes to improving Egypt's ranking in international indices related to the ease of doing business, such as the "Doing Business" reports issued by the World Bank. The improvement in these indicators sends a positive signal to global investors about Egypt's seriousness in enhancing its investment climate and increases its attractiveness as an investment destination.
7. Supporting Sustainable Development and Egypt's 2030 Vision: Green and Sustainable Industry: The law aligns with the goals of sustainable development and Egypt's 2030 Vision. It directs industrial growth towards comprehensive economic development, encourages the establishment and balanced geographical distribution of industrial zones, with a focus on sustainable development and environmental standards, ensuring a green and prosperous industrial future.
8. Combating the Informal Economy: Integrating the Unregistered: The law serves as an effective tool to integrate unlicensed workshops and factories into the formal economy. By providing these establishments with a simplified legal framework to operate in an organized and safe manner, the state can broaden its tax base, ensure the application of quality and safety standards, and provide necessary support for these projects to grow and contribute effectively to the national economy.

Key Provisions of the Law: Details of the Transformation Mechanism

The law did not merely set objectives; it included clear implementation mechanisms that elevated the regulation of industrial licensing in Egypt to a whole new level. Here's a detailed look at its most important provisions:

1. Notification Licensing System vs. Prior Licensing: A Flexible, Dual Approach: This distinction is the core of the law. It classified industrial activities based on the degree of risk they pose to public health, the environment, and occupational safety:

• Low-Risk Establishments: These represent a large segment of industries, especially SMEs. They can operate under the "notification only" system. This means the investor submits a notification to the Industrial Development Authority, fulfilling the required documents, and the license becomes effective immediately without waiting for any prior approvals. This speed grants unprecedented flexibility for commencing operations.
• High-Risk Establishments: These include industries that may have a significant environmental or health impact or require special occupational safety procedures due to the nature of materials used or production processes. These establishments are subject to the prior licensing system, which requires a technical review by the Authority before issuing the license. However, the law obliges the Authority to adhere to specific timeframes for deciding on these applications, not exceeding 30 days, to ensure no unjustified delays.

1. The Pivotal Role of the Industrial Development Authority (IDA): The Single Umbrella: Under the law, the Industrial Development Authority became the sole competent authority for issuing and renewing industrial licenses. This means eliminating the need for investors to directly obtain approvals from multiple ministries and government entities (such as health, environment, civil defense, etc.). The IDA is now responsible for determining the risk level of the activity and coordinating the acquisition of necessary approvals from other relevant entities on behalf of the investor, saving them the hassle of navigating and dealing with different bureaucracies.
2. Simplifying Documents and Procedures: Goodbye to Duplication: Required documents no longer vary from one entity to another. A unified and clear list of documents required for each type of activity was established, reducing confusion and errors. The possibility of online submission through the Authority's digital portal, or physical submission through its headquarters or branches across governorates, was also made available, facilitating access to services.
3. Setting Binding Response Deadlines: A Time Guarantee: This provision is a strong guarantee for the investor. The law obliges the Authority to decide on the application (for prior licensing) within a maximum of 30 days from the date of submission of all complete documents. If no decision is made within this period, the license is considered issued by law, protecting the investor from any deliberate or unjustified delay. As for notification-based licenses, they become effective immediately upon submission of the notification and fulfillment of documents.
4. Grievance and Appeal Mechanism: Protecting Investors' Rights: To ensure transparency and protect investors' rights, the law allows applicants to appeal a decision to reject a license application. The appeal is submitted to a specialized Grievance Committee established within the Authority. The law stipulates that this committee must decide on the appeal within a period not exceeding 15 days, providing clear and swift procedures for obtaining a final and fair decision.
5. Classification of Industrial Activities: Clarity as a Basis: The law accurately classified industrial activities based on their risk level (low or high). This scientific and clear classification determines whether the activity is subject to the notification or prior licensing system. This clarity significantly accelerated procedures and directed regulatory and inspection efforts towards activities with greater environmental or health impact, without hindering less risky industries.
6. Availability of Accreditation Offices: Partnership with the Private Sector: In a step aimed at accelerating procedures and alleviating the burden on the Authority, the law allowed establishments to use "accredited offices" approved by the Industrial Development Authority to review licenses, technical drawings, and audit reports, as an alternative to direct inspection by the Authority in some cases. These offices operate under the supervision and oversight of the IDA, ensuring quality alongside speed of completion.
7. Incentivizing Investment in Industrial Zones: Ready for Operation: The law focused on facilitating licensing procedures within planned and pre-equipped industrial zones with the necessary infrastructure. It also supported the establishment of ready-made and pre-licensed industrial complexes. These complexes are an ideal solution for SMEs, as they can start immediate operations without the burden of establishing infrastructure and obtaining complex initial licenses.

Economic and Social Impact of Law 72 of 2017: A Growing Industry, A Benefiting Society

The importance of Law 72 of 2017 cannot be solely measured by its articles and provisions but by its profound impact on the Egyptian economy and society:

• Stimulating Industrial Investment: The law removes traditional barriers that hindered new investors from entering the industrial market, reducing start-up costs and encouraging more capital injection into industry, expanding the base of local production, and achieving self-sufficiency in many products.
• Combating Bureaucracy and Enhancing Transparency: By shortening procedures, unifying the issuing authority, and setting binding deadlines, government bureaucracy that led to project delays and stoppages has been reduced. The law also minimizes opportunities for corruption and manipulation, enhancing transparency and attracting investments that seek clear and fair operating environments.
• Supporting Small and Medium Enterprises (SMEs): This law is a lifeline for SMEs. Through the notification licensing system, thousands of informal workshops and small factories can easily enter the formal economy, providing them with legal protection, facilitating access to financing, and expanding their contribution to the GDP.
• Improving Egypt's Ranking in International Business Indices: This law directly aligns with the state's efforts to improve Egypt's ranking in international reports on the ease of doing business, such as the World Bank's "Doing Business" reports, and other global economic indicators. The improvement in these indicators not only attracts investments but also boosts confidence in the Egyptian economy as a whole.
• Creating Job Opportunities and Increasing Local Production: Facilitating the establishment and operation of factories directly leads to the creation of new job opportunities for youth, absorbing a significant portion of unemployment. It also contributes to increasing local production, reducing import bills, enhancing the competitiveness of Egyptian products in local and global markets, and contributing to economic security.
• Enhancing Transparency and Effective Oversight: The new system is clearer and more transparent, reducing opportunities for corruption. It also facilitates the IDA's oversight role over factories to ensure their compliance with quality, occupational safety, and environmental standards, achieving a balance between investment facilitation and maintaining necessary standards.
• Supporting Egypt's 2030 Vision: The law directly serves the state's plan for achieving sustainable development, especially in the economic and industrial sectors, as a legislative tool that encourages modern industrialization, innovation, and enhancing the competitiveness of the Egyptian economy. It contributes to building a strong and diversified industrial base capable of meeting local market needs and exporting.

Steps to Obtain an Industrial License Under the New Law

Based on Law No. 72 of 2017 regarding the Facilitation of Procedures for Granting Licenses to Industrial Establishments, the process of obtaining an industrial license in Egypt has become more streamlined and clear. The basic steps depend on the classification of the industrial establishment based on its risk level, to determine whether it will be subject to the "notification licensing" or "prior licensing" system.

First: Determining the Type of Industrial Activity (Risk Classification)

Before initiating any procedure, the investor must determine the risk level of their industrial activity. This classification dictates the path the licensing process will follow:

1. Low-Risk Activities:

• Path: Subject to the Notification Licensing system.

1. High-Risk Activities:

• Path: Subject to the Prior Licensing system.

How to determine your activity's classification? The Industrial Development Authority (IDA) is the entity responsible for classifying industrial activities. It typically has a clear guide or lists of activities classified by risk level. It's advisable to refer to the IDA's website or visit one of its branches for the precise classification of your activity.

Second: Required Basic Documents (for both types)

Despite the different licensing paths, there's a set of basic documents generally required from all industrial establishments:

1. Applicant's Data: A copy of the National ID card of the applicant (with original for verification).
2. Legal Documents of the Establishment: A recent and valid extract from the Commercial Register, a copy of the valid Tax Card, a valid membership certificate from the Federation of Egyptian Industries, proof of establishment's tenure (registered ownership contract, valid and notarized lease contract, or usufruct contract), and the company's articles of association (if the project is a company).
3. Technical Documents of the Establishment: An engineering drawing of the site or the factory's engineering drawings, and a certificate of suitability from an accredited consultant engineer registered with the Engineers Syndicate.

Third: Submission Steps According to License Type

A. Notification Licensing System (for Low-Risk Activities)

1. Submit Notification and Documents: The investor goes to the Industrial Development Authority (headquarters, one of its branches, or via the IDA's online portal if the service is fully available electronically) and submits the designated notification form along with all basic documents and a simplified environmental overview.
2. Pay Fees: The prescribed fees are paid.
3. Immediate Commencement of Activity: Upon submission of the notification and fulfillment of all required documents, the license is considered effective by law, and the establishment is entitled to commence industrial activity immediately.

B. Prior Licensing System (for High-Risk Activities)

1. Submit License Application: The investor goes to the IDA (headquarters or a branch, or via the online portal) and submits the prior licensing application form along with all basic documents, an Environmental Impact Assessment (EIA) study approved by the Egyptian Environmental Affairs Agency (EEAA), and a fire prevention report.
2. Application Review and Technical Inspection: The IDA reviews the application and attached documents and may request any missing information or additional clarifications. Technical and environmental inspections of the establishment are conducted.
3. Pay Fees: After fulfilling the conditions and preliminary approvals, the prescribed fees for issuing the license are paid.
4. Decision on Application and License Issuance: The IDA must decide on the application within a maximum of 30 days from the date of submission of all complete documents. Otherwise, the license is considered issued by law, which is a strong guarantee for the investor. In case of rejection, the decision must be justified, and the investor has the right to appeal.

Fourth: Post-Licensing Procedures (Registration in the Industrial Register)

After obtaining the industrial license (whether by notification or prior), the establishment must complete the registration procedures in the Industrial Register at the Ministry of Trade and Industry. This register is essential for legally carrying out industrial activity.

Conclusion

Law 72 of 2017 concerning the Facilitation of Procedures for Granting Licenses to Industrial Establishments represents a tangible and genuine step towards improving the industrial business environment in Egypt. Through a methodology based on speed, transparency, and clarity in procedures, obtaining an industrial license is no longer an obstacle hindering investors' ambitions. It is a law that not only serves large investors but also opens wide doors for small and medium-sized industries to become an active part of the formal economy, contributing to the comprehensive and sustainable development that the Egyptian state is strongly pursuing.

You can access the full text of the law here: [Insert link to the law here - if available and publicly accessible]

English Translation

"Facilitation of Licensing Law": A Cornerstone for Investment Climate and Driving Development in Egypt

In recent years, the Arab Republic of Egypt has witnessed a radical transformation in its economic vision, with an unprecedented focus on enhancing the investment climate and developing the industrial sector. This attention wasn't just slogans; it materialized into a package of legislative and procedural reforms aimed at creating an attractive environment for both local and foreign capital. The issuance of Law No. 72 of 2017 concerning the Facilitation of Procedures for Granting Licenses to Industrial Establishments stands as a landmark and cornerstone in this journey. It addresses chronic challenges that hindered the growth of the industrial sector, opening vast horizons for it to become a true locomotive for comprehensive and sustainable economic development.

Before this law, industrial investors faced a complex bureaucratic maze characterized by slow procedures, multiple involved entities, and conflicting jurisdictions. This wasted significant time, effort, and money, deterring many investors or pushing them to seek opportunities in more flexible environments. Law 72 of 2017 came to put an end to this suffering, establishing a new legal framework that allows factories to operate quickly and with minimal administrative costs, while maintaining high standards of quality, occupational safety, public health, and environmental protection.

Strategic Vision and Objectives of Law 72 of 2017: Towards a Prosperous Egyptian Industry

Law 72 of 2017 didn't emerge from a vacuum; it was the result of an in-depth study of the challenges facing the industrial sector and an ambitious vision for its future. Its strategic objectives revolved around specific points aimed at fundamentally improving Egypt's investment environment:

1. Simplifying and Facilitating Licensing Procedures: Eliminating Bureaucracy: Complex and routine administrative procedures were the biggest obstacle for investors. The law significantly reduced the number of approvals required from multiple entities and adopted a clear and simplified licensing system. This simplification means a tremendous reduction in required paperwork and steps to be taken, saving valuable time for investors that can be utilized to commence production and operation.
2. Reducing the Timeframe for Obtaining Licenses: The Speed Factor: The lengthy duration for obtaining licenses was a primary reason for investor hesitation. The law stipulated clear and binding timeframes for examining applications and responding to them, drastically shortening the time to issue a license. This speed in completion translates into faster operation and, consequently, quicker returns on investment.
3. Activating the Notification Licensing System: Supporting Small and Medium Enterprises (SMEs): This system is a qualitative leap. It allowed low-risk industrial establishments (which constitute the majority of SMEs) to immediately start operations upon submitting a "notification" to the Authority, without waiting for prior approvals. This indirect support for SMEs contributes to their integration into the formal economy, their growth, and the creation of more job opportunities.
4. Granting the Industrial Development Authority (IDA) a Leading Role: Unifying Authority: Before the law, investors had to navigate various ministries and government entities to obtain necessary approvals, leading to overlapping jurisdictions and responsibilities. The law designated the IDA as the "single window" and the sole authority responsible for issuing and renewing industrial licenses. This unification eliminates overlap and conflict, simplifying procedures and making them more efficient.
5. Encouraging Industrial Investment and Attracting Capital: Building Trust: By removing bureaucratic obstacles and facilitating procedures, Egypt's industrial investment environment became more attractive and trustworthy. This positive climate encourages local and foreign investors to inject more capital into the vital industrial sector, which is a driver of economic growth and value creation.
6. Improving the Business Environment and Raising International Rankings: Egypt's Economic Image: The law directly contributes to improving Egypt's ranking in international indices related to the ease of doing business, such as the "Doing Business" reports issued by the World Bank. The improvement in these indicators sends a positive signal to global investors about Egypt's seriousness in enhancing its investment climate and increases its attractiveness as an investment destination.
7. Supporting Sustainable Development and Egypt's 2030 Vision: Green and Sustainable Industry: The law aligns with the goals of sustainable development and Egypt's 2030 Vision. It directs industrial growth towards comprehensive economic development, encourages the establishment and balanced geographical distribution of industrial zones, with a focus on sustainable development and environmental standards, ensuring a green and prosperous industrial future.
8. Combating the Informal Economy: Integrating the Unregistered: The law serves as an effective tool to integrate unlicensed workshops and factories into the formal economy. By providing these establishments with a simplified legal framework to operate in an organized and safe manner, the state can broaden its tax base, ensure the application of quality and safety standards, and provide necessary support for these projects to grow and contribute effectively to the national economy.

Key Provisions of the Law: Details of the Transformation Mechanism

The law did not merely set objectives; it included clear implementation mechanisms that elevated the regulation of industrial licensing in Egypt to a whole new level. Here's a detailed look at its most important provisions:

1. Notification Licensing System vs. Prior Licensing: A Flexible, Dual Approach: This distinction is the core of the law. It classified industrial activities based on the degree of risk they pose to public health, the environment, and occupational safety:

• Low-Risk Establishments: These represent a large segment of industries, especially SMEs. They can operate under the "notification only" system. This means the investor submits a notification to the Industrial Development Authority, fulfilling the required documents, and the license becomes effective immediately without waiting for any prior approvals. This speed grants unprecedented flexibility for commencing operations.
• High-Risk Establishments: These include industries that may have a significant environmental or health impact or require special occupational safety procedures due to the nature of materials used or production processes. These establishments are subject to the prior licensing system, which requires a technical review by the Authority before issuing the license. However, the law obliges the Authority to adhere to specific timeframes for deciding on these applications, not exceeding 30 days, to ensure no unjustified delays.

1. The Pivotal Role of the Industrial Development Authority (IDA): The Single Umbrella: Under the law, the Industrial Development Authority became the sole competent authority for issuing and renewing industrial licenses. This means eliminating the need for investors to directly obtain approvals from multiple ministries and government entities (such as health, environment, civil defense, etc.). The IDA is now responsible for determining the risk level of the activity and coordinating the acquisition of necessary approvals from other relevant entities on behalf of the investor, saving them the hassle of navigating and dealing with different bureaucracies.
2. Simplifying Documents and Procedures: Goodbye to Duplication: Required documents no longer vary from one entity to another. A unified and clear list of documents required for each type of activity was established, reducing confusion and errors. The possibility of online submission through the Authority's digital portal, or physical submission through its headquarters or branches across governorates, was also made available, facilitating access to services.
3. Setting Binding Response Deadlines: A Time Guarantee: This provision is a strong guarantee for the investor. The law obliges the Authority to decide on the application (for prior licensing) within a maximum of 30 days from the date of submission of all complete documents. If no decision is made within this period, the license is considered issued by law, protecting the investor from any deliberate or unjustified delay. As for notification-based licenses, they become effective immediately upon submission of the notification and fulfillment of documents.
4. Grievance and Appeal Mechanism: Protecting Investors' Rights: To ensure transparency and protect investors' rights, the law allows applicants to appeal a decision to reject a license application. The appeal is submitted to a specialized Grievance Committee established within the Authority. The law stipulates that this committee must decide on the appeal within a period not exceeding 15 days, providing clear and swift procedures for obtaining a final and fair decision.
5. Classification of Industrial Activities: Clarity as a Basis: The law accurately classified industrial activities based on their risk level (low or high). This scientific and clear classification determines whether the activity is subject to the notification or prior licensing system. This clarity significantly accelerated procedures and directed regulatory and inspection efforts towards activities with greater environmental or health impact, without hindering less risky industries.
6. Availability of Accreditation Offices: Partnership with the Private Sector: In a step aimed at accelerating procedures and alleviating the burden on the Authority, the law allowed establishments to use "accredited offices" approved by the Industrial Development Authority to review licenses, technical drawings, and audit reports, as an alternative to direct inspection by the Authority in some cases. These offices operate under the supervision and oversight of the IDA, ensuring quality alongside speed of completion.
7. Incentivizing Investment in Industrial Zones: Ready for Operation: The law focused on facilitating licensing procedures within planned and pre-equipped industrial zones with the necessary infrastructure. It also supported the establishment of ready-made and pre-licensed industrial complexes. These complexes are an ideal solution for SMEs, as they can start immediate operations without the burden of establishing infrastructure and obtaining complex initial licenses.

Economic and Social Impact of Law 72 of 2017: A Growing Industry, A Benefiting Society

The importance of Law 72 of 2017 cannot be solely measured by its articles and provisions but by its profound impact on the Egyptian economy and society:

• Stimulating Industrial Investment: The law removes traditional barriers that hindered new investors from entering the industrial market, reducing start-up costs and encouraging more capital injection into industry, expanding the base of local production, and achieving self-sufficiency in many products.
• Combating Bureaucracy and Enhancing Transparency: By shortening procedures, unifying the issuing authority, and setting binding deadlines, government bureaucracy that led to project delays and stoppages has been reduced. The law also minimizes opportunities for corruption and manipulation, enhancing transparency and attracting investments that seek clear and fair operating environments.
• Supporting Small and Medium Enterprises (SMEs): This law is a lifeline for SMEs. Through the notification licensing system, thousands of informal workshops and small factories can easily enter the formal economy, providing them with legal protection, facilitating access to financing, and expanding their contribution to the GDP.
• Improving Egypt's Ranking in International Business Indices: This law directly aligns with the state's efforts to improve Egypt's ranking in international reports on the ease of doing business, such as the World Bank's "Doing Business" reports, and other global economic indicators. The improvement in these indicators not only attracts investments but also boosts confidence in the Egyptian economy as a whole.
• Creating Job Opportunities and Increasing Local Production: Facilitating the establishment and operation of factories directly leads to the creation of new job opportunities for youth, absorbing a significant portion of unemployment. It also contributes to increasing local production, reducing import bills, enhancing the competitiveness of Egyptian products in local and global markets, and contributing to economic security.
• Enhancing Transparency and Effective Oversight: The new system is clearer and more transparent, reducing opportunities for corruption. It also facilitates the IDA's oversight role over factories to ensure their compliance with quality, occupational safety, and environmental standards, achieving a balance between investment facilitation and maintaining necessary standards.
• Supporting Egypt's 2030 Vision: The law directly serves the state's plan for achieving sustainable development, especially in the economic and industrial sectors, as a legislative tool that encourages modern industrialization, innovation, and enhancing the competitiveness of the Egyptian economy. It contributes to building a strong and diversified industrial base capable of meeting local market needs and exporting.

Steps to Obtain an Industrial License Under the New Law

Based on Law No. 72 of 2017 regarding the Facilitation of Procedures for Granting Licenses to Industrial Establishments, the process of obtaining an industrial license in Egypt has become more streamlined and clear. The basic steps depend on the classification of the industrial establishment based on its risk level, to determine whether it will be subject to the "notification licensing" or "prior licensing" system.

First: Determining the Type of Industrial Activity (Risk Classification)

Before initiating any procedure, the investor must determine the risk level of their industrial activity. This classification dictates the path the licensing process will follow:

1. Low-Risk Activities:

• Path: Subject to the Notification Licensing system.

1. High-Risk Activities:

• Path: Subject to the Prior Licensing system.

How to determine your activity's classification? The Industrial Development Authority (IDA) is the entity responsible for classifying industrial activities. It typically has a clear guide or lists of activities classified by risk level. It's advisable to refer to the IDA's website or visit one of its branches for the precise classification of your activity.

Second: Required Basic Documents (for both types)

Despite the different licensing paths, there's a set of basic documents generally required from all industrial establishments:

1. Applicant's Data: A copy of the National ID card of the applicant (with original for verification).
2. Legal Documents of the Establishment: A recent and valid extract from the Commercial Register, a copy of the valid Tax Card, a valid membership certificate from the Federation of Egyptian Industries, proof of establishment's tenure (registered ownership contract, valid and notarized lease contract, or usufruct contract), and the company's articles of association (if the project is a company).
3. Technical Documents of the Establishment: An engineering drawing of the site or the factory's engineering drawings, and a certificate of suitability from an accredited consultant engineer registered with the Engineers Syndicate.

Third: Submission Steps According to License Type

A. Notification Licensing System (for Low-Risk Activities)

1. Submit Notification and Documents: The investor goes to the Industrial Development Authority (headquarters, one of its branches, or via the IDA's online portal if the service is fully available electronically) and submits the designated notification form along with all basic documents and a simplified environmental overview.
2. Pay Fees: The prescribed fees are paid.
3. Immediate Commencement of Activity: Upon submission of the notification and fulfillment of all required documents, the license is considered effective by law, and the establishment is entitled to commence industrial activity immediately.

B. Prior Licensing System (for High-Risk Activities)

1. Submit License Application: The investor goes to the IDA (headquarters or a branch, or via the online portal) and submits the prior licensing application form along with all basic documents, an Environmental Impact Assessment (EIA) study approved by the Egyptian Environmental Affairs Agency (EEAA), and a fire prevention report.
2. Application Review and Technical Inspection: The IDA reviews the application and attached documents and may request any missing information or additional clarifications. Technical and environmental inspections of the establishment are conducted.
3. Pay Fees: After fulfilling the conditions and preliminary approvals, the prescribed fees for issuing the license are paid.
4. Decision on Application and License Issuance: The IDA must decide on the application within a maximum of 30 days from the date of submission of all complete documents. Otherwise, the license is considered issued by law, which is a strong guarantee for the investor. In case of rejection, the decision must be justified, and the investor has the right to appeal.

Fourth: Post-Licensing Procedures (Registration in the Industrial Register)

After obtaining the industrial license (whether by notification or prior), the establishment must complete the registration procedures in the Industrial Register at the Ministry of Trade and Industry. This register is essential for legally carrying out industrial activity.

Conclusion

Law 72 of 2017 concerning the Facilitation of Procedures for Granting Licenses to Industrial Establishments represents a tangible and genuine step towards improving the industrial business environment in Egypt. Through a methodology based on speed, transparency, and clarity in procedures, obtaining an industrial license is no longer an obstacle hindering investors' ambitions. It is a law that not only serves large investors but also opens wide doors for small and medium-sized industries to become an active part of the formal economy, contributing to the comprehensive and sustainable development that the Egyptian state is strongly pursuing.

You can access the full text of the law here