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FAQs

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Operating licences (38)

What are the procedures for technical modification of the Operating License?
  • When applying for a technical modification of the Operating License by adding activities, changing activities, or modifying motive power: if the requested modification is adding activities, the investor must proceed to IDA headquarters to apply for an environmental approval for the requested additional activities.
  • In the case of a technical modification by deleting the activity listed in the Land Handover Minutes and operating other activities, you can proceed to IDA headquarters to apply for a change of activity on the Land Handover Minutes (for operational facilities within industrial zones).
Is investor required to obtain Civil Protection approval for a license under the Notification System?
  • Civil Protection approval is an essential part of industrial licensing under both the Prior Approval and Notification Systems. The difference is that under the Notification System, Civil Protection approval procedures are pursued after obtaining license.
  • • If an inspection is conducted and violations are detected, investor is granted a two-week grace period to appear before IDA and clarify their position. Consequently, a maximum grace period of 180 days is granted to fulfill Civil Protection requirements. This period may be renewed once, provided that investor reports to IDA at the end of the granted period to clarify their position regarding the fulfillment of requirements. Based on their status, the grace period will be renewed according to a new timeline. In the event that investor fails to adhere to the timeline and procedures, the license will be canceled, or the license will be canceled and the facility closed, depending on case.

Note: For small and micro enterprises, the grace period granted to the investor to fulfill Civil Protection requirements is doubled.

Is environmental protection approval required for license issuance?
  • When requesting an Operating License under the Prior Approval System, a previous environmental approval must be submitted, or an environmental impact assessment study must be prepared in 3 hard copies + 3 CDs.
  • For Operating License applications under Notification System, a previous environmental approval issued to facility or an environmental screening study prepared according to guidelines set by IDA,(download)along with Activity Change Committee receipt, shall suffice, depending on case.
How is the technical and environmental file prepared?
  • Please review the guidelines available on IDA website .
  • You can fill out the referred model personally or through an authorized representative of the company, with signatures required on all its pages.
Are there IDA accredited offices to complete operating license procedures?

Numerous accredited offices authorized by IDA complete procedures for Operating License applications and issue accreditation certificates. This certificate serves as approval verifying facility fulfillment of documents and requirements needed for Operating License issuance by IDA.(Link to accreditation offices).

Can investor obtain Golden License from IDA?

General Authority for Investment and Free Zones (GAFI) is the entity responsible for granting Golden License to investors. All procedures and conditions can be reviewed on GAFI website. (Investment Authority Website).

What are the facilitations approved by IDA according to the Temporary Administrative Decree No. 133 of 2023?
  • In the case of immediate full payment,an exemption of 75% of the value of the prescribed fine is granted,provided provided that the project construction is completed and the Operating License and Industrial Registry are issued during the implementation timeline after adding the granted free extension. 
  • In the case of requesting to pay the fine in installments, an exemption of 50% of the value of the prescribed fine is granted provided that the remaining fine amount is paid in consecutive semi-annual installments overa maximum period of 3 years.. The discount and credit rate announced by the Central Bank of Egypt shall be added to the installments. In the event of default on two consecutive installments, IDA reserves the right to take the necessary measures toward canceling the allocation of the plot or unit.
What is the difference between the seriousness proof period and the rent exemption period for industrial units?

The seriousness proof period for units is 6 months from the date of receiving the unit to issue the Operating License and Industrial Registry, whereas the rent exemption period is 9 months from the date of receiving the unit and has no correlation with the seriousness proof period.

What are the conditions for increasing electrical capacity of industrial units?

To increase the electrical capacity, investor must consult the competent authority, which in this case is the electricity company under whose geographical jurisdiction the industrial complex falls,noting that the conditions are specified in the conditions brochure and must be strictly adhered to.

Can the electrical capacity of industrial units be increased?

Each industrial complex has a specific designated electrical capacitythat cannot be exceeded..

What are the procedures followed to establish the new legal entity on the industrial unit handover minutes?

The Land Handover Minutes, the lease agreement, and the documents verifying the legal entity must be submitted to IDA, provided that the person to whom the unit was allocated holds a share of at least 51% in the company.

What are the cases of industrial license cancellation?

The cases for license cancellation are detailed in Industrial Licensing Law No. 15 of 2017 Article 35, and can be reviewed via IDA website.

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