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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

What are the manufacturing requirements for pharmaceuticals and cosmetics?

General factory requirements are available on IDA website via industrial facility licensing link. For Good Manufacturing Practices requirements for pharmaceuticals, medical supplies, and cosmetics, visit Egyptian Drug Authority (EDA) website (www.eda.gov.eg).

When is Industrial Registry canceled?

Industrial Registry is canceled after Industrial License cancellation, as license is a mandatory document for registry issuance. Therefore, Industrial License must be canceled first, followed by submitting a request to cancel Industrial Registry.

Can industrial license be transferred inside or outside industrial zones?

Industrial license issued for specific premises cannot be transferred to another location, and it is canceled upon facility expiration. Investor must apply to IDA to issue a new license for the new premises.

What are the requirements for applying for joint inspection with Egyptian Drug Authority (EDA) for factories under construction?
  1.  Copy of Land Handover Minutes.
  2.  Copy of National ID.
  3.  Copy of Tax Card.
  4.  Copy of Building Permit.
  5.  Copy of the environmental approval in case of changing activity.
  6.  Copy of latest report of project consultant engineer.
  7.  Proforma invoice for the production line whose products are to be registered

Note:This service is restricted to human and veterinary pharmaceutical factories only.

Can one apply for an operating license for pharmaceuticals or cosmetics at any branch of IDA?

Applications for an operating license for pharmaceutical industries and sterile medical supplies are exclusively submitted at the headquarters of IDA in the Fifth Settlement. Other activities not related to the aforementioned may be submitted at IDA branches.

Can factory engineering drawing be reviewed in case of pharmaceutical activities?

Engineering drawing review and approval is an optional service provided by a committee of specialists from EDA

In case of license cancellation, can IDA reverse the cancellation?

Yes, you can apply to the Grievance Committee at IDA and pay the fees required for reviewing the grievance request. Based on the outcome of the review, a decision will be made regarding the acceptance or rejection of the grievance.

What are the cases for re-inspecting an industrial activity for medical devices?

Joint re-inspection with EDA is conducted only for adding machinery and equipment that do not require changing licensed or supplement activities, and do not exceed permitted bracket.

For pharmaceutical activities, can comments and notes be sent via email?

Yes, this is permissible provided that the email address of the industrial facility has been registered in the service application form submitted to IDA.

Can financial claims due from investor be paid in installments?

Yes, investor can submit an installment request, which is reviewed and approved upon fulfilling necessary requirements

What are the required documents to transfer the license to the heirs of a deceased person?
  • All standard license application documents must be fulfilled, with the addition of the possession deed amended in the name of the heirs or the company formed by the heirs according to Law No. 15 of 2017, along with the company contract, the inheritance certificate, and a copy of the death certificate.
  • In the event that facility is established within industrial zones, the matter requires applying to the Administrative Amendment Committee at IDA to record the amendment on the Land Handover Minutes.
When are fines waived for industrial lands not complying with the timeline?

Investor is granted a 3-year seriousness proof period during which land must be handed over, constructed, and Operating License issued (an existing operating factory)The fine is calculated after the expiration of the specified timeframe on a monthly basis and it is waived in the event of circumstances beyond investor's control, such as incomplete utility infrastructure. In this case, the jurisdiction entity conducts an inspection, and the request is re-submitted to the competent committee to waive or reduce the fine depending on circumstances.

What are the subdivision procedures for industrial lands?

Investor can submit subdivision request to IDA, where a specialized committee reviews request and issues approval after ensuring there are no technical impediments or legal disputes concerning plot

What are the building regulations for industrial zones regarding heights, setbacks, and built-up area ratios?
  • Heights15 meters, provided they do not exceed Civil Aviation limits. 
  •  Built-up area ratio From 40% to 60%.
  •  Setbacks: If the land area is less than 4,000 square meters, the setback is 2.5 meters. If the land area is more than 4,000 square meters, the setback is 4 meters.

Note: Decree No. 461 of 2018 applies to specific activities that require particular built-up area ratios.

What is the best stage—during industrial project execution—to obtain environmental approval and preliminary Civil Protection approval?

Environmental approval must be obtained prior to commencing construction according to Law No. 4 of 1994Regarding Civil Protection, industrial facility must submit approved drawings to IDA prior to issuing Building Permit for review and preliminary approval by General Administration of Civil Protection to avoid any subsequent modifications after the completion of construction.

What are the required documents to request additional time extensions?
  • Proof of identity of the applicant and powers of attorney, if any.
  • Copy of the last extension period granted to the plot in case of assignment.
  • A plot handover minutes endorsed with the activation of the assignment at the city agencies must be attached, in accordance with Administrative Decree No. 344 of 2019.
Can building ratio requirements be exceeded?

Yes, through the Building Ratios and Heights Committee at IDA where the height may be increased or decreased from 15 meters or the built-up area ratio modified according to the type of activity, after referral to IDA by the competent committee.

Is it permissible to change industrial activity on the Land Handover Minutes if the licensee is a tenant and not the owner of the plot?

It is permissible provided that the lease agreement concluded between the owner and the tenant explicitly mentions the industrial activity to be changed to, or upon the owner signing an approval to change the industrial activity in favor of the tenant.

What are the cases for changing/adding an industrial activity on the Land Handover Minutes for pharmaceutical and fertilizer activities?

To operate pharmaceutical or fertilizer activities not listed on Land Handover Minutes, application must be submitted to Activity Change Committee at IDA to record these activities. Environmental approval alone is insufficient, whether activities are operated exclusively or additionally to original activity

When is investor required to obtain civil liability insurance policy against construction risks (Decennial Insurance Pool)?

The decennial insurance pool policy is required in three cases::

  1. If the value of the works to be licensed exceeds EGP1,000,000. 
  2. If the number of floors exceeds four floors.
  3. If the number of floors exceeds four floors.
What are procedures for resuming dealings on industrial lands?

According to Ministerial Decree No. 448 and Law No. 95 of 2018, required documents are:

  •  Land Handover Minutes of plot.
  •  Building Permit.
  •  Company contract, if applicable, along with latest verified company amendments.
  •  Commercial Registry of company and powers of attorney for authorized agents.
  •  Proof of applicant identity.
What are the implementation timeline stages for releasing financial guarantee?
  • First Stage: Obtaining Building Permit within maximum of 6 months from signing declaration to release 25% of financial guarantee.
  • Second Stage: Executing structural foundations according to permit within maximum of 12 months from signing declaration to release 50% of financial guarantee.
  • Third Stage: Obtain Operating License or permanent Industrial Registry at end of specified grace period to release remaining 25% of financial guarantee.
Does the decennial insurance require a validity statement?

Yes, a structural validity statement must be available.

What are the procedures for consolidating industrial lands?

According to Law No. 95 of 2018 the required documents are:

  • Land Handover Minutes of plots to be consolidated, issued under allocatee name.
  • Building Permit.
  • Company contract and latest verified amendments for corporate allocatees.
  • Commercial Registry of company.
  • Powers of attorney for authorized agents.
  • Proof of applicant identity.
Do internal modifications to the building design require an amendment to the Building Permit issued to the facility?

Yes, any modifications in the design, whether internal or external, necessitate an amendment to the Building Permit

What are the required documents for the assignment of industrial lands?
  1. Land Handover Minutes of plot.
  2. Company contract of allocatee, if applicable, and latest verified amendments.
  • For joint-stock companies: Extraordinary general assembly resolution certified by GAFI approving plot assignment.
  • For banks: Ordinary general assembly or board of directors resolution stating plot reversion to bank as debt settlement. .
  1. Commercial Registry of companies or individuals, showing recorded amendments for both assignor and assignee (updated and valid)..
  2. Recent powers of attorney (maximum 5 years old) explicitly authorizing sale and assignment to self or others, containing detailed plot data, according to Administrative Decree No. 124 of March 28, 2017. Assignments for "1000 Factories" lands in New Cairo City via powers of attorney issued after May 9, 2017 are suspended by approved memorandum to IDA Chairman.
  3. Operating License, permanent Industrial Registry, or official grace period document.
  4. Proof of applicant identity (National ID).
  5. Original documents for verification, along with photocopies..
  6. Assignment application form signed by assignor and assignee, with payment of standardized criteria costs.