Golden License Egypt | How to Get Single Approval for Projects

A Legal Measure for Investment Promotion and Acceleration of the Development of Strategic Projects

In light of the growing global competition to attract investment, developing legislative frameworks and streamlining administrative procedures have become key pillars for improving the investment climate and achieving sustainable economic development. To this end, Egyptian lawmakers have adopted unconventional legal measures to remove bureaucratic obstacles and accelerate the implementation of strategically important projects, in line with the state’s vision and long-term development plans.

In this context, the Golden License system has emerged as one of the most important legal instruments introduced under Investment Law 72 of 2017, as amended. It represents an advanced model of a comprehensive single-approval system that consolidates all the licenses and permits necessary for establishing, operating, and managing a project into a single decision. This system reflects a clear legislative approach aimed at striking a balance between streamlining investment procedures, on the one hand, and ensuring legal oversight and protecting the public interest, on the other.

Consequently, the Golden License holds particular significance as an exceptional mechanism designed to support national and strategic projects and bolster the confidence of local and foreign investors. It also contributes to creating a more efficient and stable investment environment, thereby supporting economic development goals and enhancing the competitiveness of the Egyptian economy at the regional and international levels.

The Golden License is a single, comprehensive approval issued by a decision of the Council of Ministers, which encompasses all the permits and licenses necessary for establishing, operating, and managing a project, including building and operating permits, land allocation, environmental approvals, and other approvals that are typically issued by multiple agencies.

Under this license, the documentation and procedural process are streamlined into a single approval, thereby ensuring speed and efficiency in project implementation.

Authorities Competent to Issue the Gold License:

The Golden License is issued by a decision of the Council of Ministers based on a proposal from the General Authority for Investment and Free Zones (GAFI), following a review of the project’s economic feasibility, its developmental impact, and its alignment with national plans.

Benefits of Gold License:

1. Obtaining all licenses and approvals as soon as possible, as the issuance of the Golden License requires a single approval from the Council of Ministers.
2. Access to the best investment incentives for Golden License projects, including general incentives, special incentives, and additional incentives; depending on the nature of the project, one or more of the incentives provided may apply to the Golden License.
3. Promising economic activities: The Egyptian economy is considered one of the most diversified economies. As a result, it is stronger due to this diversity, as it is experiencing clear growth across several sectors, which has helped ensure the prosperity and sustainability of all sectors.
4. A skilled workforce at competitive rates: Egypt boasts one of the largest workforces in the region, with a wide range of skills and a leading presence in the service, technology, and specialized sectors, along with competitive and stable wage levels compared to rival countries.

Projects eligible for a golden license (single approval):

The following companies may be granted a Gold License:

1.  Companies engaged in the development of strategic or national projects contribute to sustainable development in accordance with the country’s economic development plan.

When is an investment project considered strategic or national?

In accordance with Cabinet Decree 56 of 2022, which aims to specify the criteria and conditions upon which an Investment Project can be considered national or strategic, the project must meet the following criteria:

- Exporting no less than 50% of its products annually, within 3 years since the beginning of activity.

- Relying on foreign currency financing transferred through an Egyptian bank in accordance with the Investment Law and CBE regulations.

- Reducing imports, localizing the relevant industry, and utilizing local ingredients in its production to be no less than 50%.

- Implementing the project in areas most in need of development.

- Transferring and localizing technology and supporting innovation and scientific research.

- Securing strategic goods for the country and limiting importation.

- High reliance on domestic labor.

- Compliance with environmental standards, reduction of heat and gas emissions, and improvement of the climate.

2. Companies established to carry out public-private partnership projects with the private sector, the public sector, or the public business sector in the following areas: (public utilities and infrastructure; new and renewable energy; roads and transportation; ports; and telecommunications and information technology).

Areas and activities for which a single approval is granted:

1. Electricity and renewable energy.

2. Petroleum and mineral resources.

3. Transportation projects.

4. Manufacturing.

5. Telecommunications and information technology.

6. Housing, utilities, and urban communities.

7. Tourism.

8. Youth and sports.

9. Environment.

10. Agricultural.

11. Defense.

12. Health.

13. Supply and domestic trade.

Eligibility Requirements for Gold License Applicants:

1. The project must be established as a joint-stock company (JSC) or a limited liability company (LLC), in accordance with the provisions of Investment Law 72 of 2017 or the Companies Law 159 of 1981.

2. Providing evidence of financial solvency to implement the project, in accordance with the criteria established by the GAFI’s Board of Directors.

3. The company must be incorporated on a date after the effective date of Investment Law 72 of 2017.

4. A preliminary feasibility study for the project must be submitted, prepared by a reputable, licensed national or international consulting firm.

5. A schedule for the project’s implementation must be submitted.

6. A declaration must be submitted committing to the provision of all infrastructure facilities (roads, water, sewage, electricity, telecommunications, and waste treatment).

7. A declaration must be submitted affirming compliance with all requirements and regulations about the company’s activities in accordance with the applicable laws and regulations.

Required documents for companies applying for a Gold License:

The company shall submit an application for a Gold License to the Technical Secretariat of the Gold License Unit at the General Authority for Investment and Free Zones (GAFI), using the designated form and attaching two certified copies of the following documents:

1. The company's articles of incorporation, bylaws, and certificate of incorporation.
2. A recent extract of the company's commercial registry.
3. The company's tax ID.
4. Proof of ownership of the business premises must be verified in the Commercial Registry.
5. A preliminary feasibility study for the project, prepared by a reputable licensed national or international consulting firm.
6. Providing evidence of financial solvency to execute the project.
7. Project implementation schedule.
8. A declaration by the company’s legal representative or the proxy of the shareholders/partners committing to provide all infrastructure facilities for the project (roads, water, sewage, electricity, telecommunications, and resolution of violations).
9. Any other documents requested by the GAFI.

Process for obtaining a Gold License:

The process is as follows:

1. An application to the GAFI, including a detailed feasibility study.

2. Application review by the relevant authorities to assess the viability of the project.

3. Application presentation to the Cabinet for a final decision.

4. A comprehensive approval that serves as a unified license for the project.

In conclusion, the Golden License is an advanced legislative measure that reflects the government’s commitment to creating a more flexible and efficient investment environment. This contributes to accelerating the implementation of strategic projects, enhancing the competitiveness of the national economy, and achieving sustainable development goals.

This system also strikes a delicate balance between streamlining procedures and consolidating jurisdictions on the one hand, and ensuring legal oversight and protecting the public interest on the other.

The importance of this legal framework is heightened by the need to support serious investments that contribute to technology transfer, deepen local manufacturing, increase exports, and create jobs. This means that a thorough understanding of the requirements for the Golden License and the mechanisms for its implementation is essential for investors and companies to successfully reap its benefits.

In this context, Sadany & Partners Law Firm plays a key role in providing specialized legal support to companies and investors by offering comprehensive legal advice and assisting with the procedures for obtaining the Golden License. We also ensure that projects comply with legislative and regulatory requirements, thereby helping to mitigate legal risks and expedite the commencement of operations in accordance with best professional practices.

Consequently, the integration of legislative development and specialized legal expertise is the cornerstone for maximizing the benefits of investment incentives and creating a stable and attractive business environment that supports Egypt’s economic development.