Industrial Registry and Operating Licenses in Egypt: Procedures and Law No. 15 of 2017

Guide for obtaining the Industrial Registration and Operating License in Egypt… Learn about the latest legal requirements.

Operating licenses and the industrial registry are crucial regulatory mechanisms that ensure industrial activity adheres to safety, environmental, and legal standards. This process helps monitor and enforce compliance, providing a legal framework for industrial operations, as well as for the protection of the public and the environment.  The right to operate an industrial facility can only be obtained by going through an integrated system of regulation and licensing imposed by the legislation in force, primarily Law No. 15 of 2017 on Facilitating Industrial Licensing Procedures and the Executive Regulations thereto, which restructured traditional procedures and provided facilities with a clear legal framework for establishing and formally registering their activities.

In this context, this article addresses the legal framework governing industrial registration and operating licenses. It also discusses their role in legitimizing industrial establishments and providing a safe environment for conducting activities in accordance with legislative regulations and state requirements for achieving sustainable industrial development.

An industrial facility is any establishment, regardless of size, that performs operations to transform or alter products. These activities include physical or chemical processing of raw materials, and other functions such as assembly, packaging, sorting, or recycling. These operations shall comply with specific standards and regulations set by the minister responsible for industrial affairs.

 An operating license is a legal permit issued by the competent authority. It authorizes an industrial facility to start operating after verifying its compliance with technical, security, and legal requirements.

An industrial registry is an official database in which industrial facilities are registered after completing their legal and technical data. The purpose is to prove their operational existence and monitor their activities under the supervision of the competent authority.

The competent authority responsible for issuing operating licenses and filling industrial registers is the Industrial Development Authority (IDA). It is responsible for regulating industrial activity in Egypt, managing its affairs, implementing industrial policies set by the competent ministry and its affiliated bodies, developing and implementing land development policies for industrial purposes and making them available to investors, and facilitating their access to industrial licenses.

How is an operating license issued for an industrial facility?

There are two types of operating licenses for industrial facilities:

The notification licensing system requires industrial facilities operating in low-risk industries to notify the competent administrative authority of their operation using the notification form regulated under the provisions of the law.

However, the competent administrative authority may apply the notification licensing system to activities carried out within industrial zones designated by a decision of the Prime Minister. However, their planning, establishment, or rehabilitation shall take into account the security, health, safety, and environmental requirements specified by the Licensing Requirements Committee.

The prior notification system requires industrial facilities that pose a significant risk to security, health, safety, or the environment to obtain prior approval from the competent administrative authority before their establishment, operation, or management.

Basic requirements of issuing an operating license under the notification system and an operating license under the prior notification system:

The application can be submitted either in paper or electronic form, and the following documents must be attached:

1. Proof of identity of the applicant, accompanied by a power of attorney or bank authorization from the principal or proxy.

2. A recent extract from the commercial register, tax card, and title deed for the industrial facility.

3. The original previous operating license issued in accordance with Law 453, if available, or a copy thereof and a report of loss. Where no operating license is issued in accordance with Law 453 for facilities outside industrial zones, a letter of non-prohibition shall be issued.

4. Valid membership certificate from the Federation of Industries.

5. Technical and environmental file.

6. Fire prevention report or prior civil defense approval (the report shall be approved by an electrical or mechanical consultant).

7. A certificate of suitability from a consultant certified by the Engineers Association stating that the building is suitable for occupancy.

8. Statement of company contact details, including details of the manager in charge, phone number, email address, and payment of the prescribed issuance fees.

- After submitting the above documents, the notification form is delivered to the applicant, serving as an indefinite, valid and effective license, until the competent administrative authority inspects the industrial facility within a period not exceeding 90 days from the date of submission of the notification. After that, the operating license is issued with the notification.

- If the administrative authority denies the licensing, the decision shall be justified and communicated to the industrial facility by registered letter with acknowledgment of receipt within 14 days of the date of issuance. The applicant may appeal that decision.

- If the industrial facility meets the requirements to carry out the activity, an indefinite license shall be issued. However, if the facility does not meet the non-essential requirements specified by the Licensing Requirements Committee, it will receive a temporary license valid for one year, renewable for up to three years, until it meets these requirements.

Instructions for Achieving Regulatory Compliance for Non-Compliant Facilities:

Existing industrial facilities holding permanent or temporary licenses, which do not meet the basic requirements stipulated by law, shall apply to regulatory compliance to the competent administrative authority, on the earlier of a maximum of two years from the date of entry into force of the Executive Regulations or within two months from the date of expiry of the license. The application shall be provided for the rectification of the industrial facility's position after obtaining a certified copy of the industrial activity practice manual.

Period of Regulatory Compliance of Industrial Facilities:

Facilities subject to the notification system shall meet compliance requirements within a period not exceeding two years from the date of submission of the compliance application.

Facilities subject to the prior licensing system shall meet compliance requirements no later than three years from the date of submission of the compliance application.

After confirming that the application for regulatory compliance and the required documents have been completed, the administrative authority shall, within one week, grant facilities with a permanent or temporary license an indefinite license.

In the event that the deadline set for the industrial facility expires without achieving compliance and a decision is issued for suspending activity, closing the facility, or revoking the license, the competent administrative authority may take the following measures:

1. Warn the owner of the facility not to operate with the revoked license; otherwise, they will be held criminally and civilly liable for the consequences.

2. Inform all administrative bodies responsible for utilities to disconnect all or some of the utilities from the facility.

The documents required to achieve regulatory compliance of industrial facilities are as follows:

The industrial facility shall apply to regulatory compliance in paper or electronic form, undertaking to fulfill all the requirements for establishing and managing the facility during the prescribed period, and attaching the following documents to the application:

1. Recent extract of the commercial register.

2. Obtaining a certified copy of the industrial activity practice manual.

3. A copy of the industrial license.

4. Proof of ownership of the land or building, whether it is a title deed, lease, or usufruct contract.

Amendment to the operating license of industrial facilities:

Industrial facilities shall obtain a new license to operate when relocating their place of business to another location, without prejudice to the purpose of allocating industrial land in the location where the activity is to be carried out.

When making a fundamental amendment to the license purpose, the industrial facility shall follow the procedures established for the licensing system governing industrial activity in accordance with the provisions of the law.

5. Notification in the industrial register of the closure or revocation of the license of an industrial facility:

When a decision is issued by the competent administrative authority or a court ruling to close, seize, confiscate, or revoke the license of an industrial facility, this shall be noted in the industrial register held by the administrative authority.

If the industrial facility rectifies the violation within the specified period, the marking in the industrial register shall be deleted and the penalty shall be considered null and void.

The industrial register, as an official legal document in which all industrial facilities are registered and their operational status is verified, classifies such industrial facilities into hazardous and non-hazardous facilities. The most important facilities required to register are workshops, factories, and production projects.

How is an industrial facility registered in the industrial register?

Industrial facilities shall be registered with the Industrial Registry within 30 days from the date of commencement of production and shall submit all documents required by the Licensing Committee. The facility shall be registered for a renewable period of five years. These documents are as follows:

1. Application form for issuing an industrial register for an industrial facility.

2. Operating license for the industrial facility (and receipt of license follow-up if more than one year has passed).

3. A recent and valid commercial registration (not older than six months).

4. A valid tax card in the name of the company.

5. A valid membership certificate in the name of the industrial facility from the Federation of Egyptian Industries.

6. A copy of the power of attorney or bank authorization, with the original submitted for review, along with a copy of the national ID card of the proxy or representative.

7. Original of the latest industrial register (in case of technical modification/renewal).

8. A date-registered lease agreement with a minimum term of five years. If the term is shorter than this period, the committee recommends applying for a conditional industrial registration directly for the same term mentioned in the agreement, with payment of the standard costs for both.

Amendments to the industrial register of an industrial facility

Industrial facilities shall amend the industrial register upon any change in the facility's name, legal entity, or commercial designation, and shall submit the following documents for amendment to the industrial register:

1. Application form for amendment of the industrial register of an industrial facility.

2. Operating license for the amended industrial facility (and receipt of license follow-up if more than one year has passed).

3- A recent and valid commercial registration (not older than six months) and a valid tax card in the company's name.

4- A valid membership certificate in the name of the industrial facility and the new entity after the amendment, issued by the Federation of Egyptian Industries.

5. A copy of the power of attorney or bank authorization, with the original submitted for review, along with a copy of the national ID card of the proxy or representative.

6. Original of the latest industrial register (in case of technical modification/renewal).

7. Title deed for the industrial facility.

8. The latest industrial registration obtained by the company (a copy if valid, and the original to be submitted upon receipt of the amended registration).

9. In the case of an amendment from sole proprietorship to sole proprietorship (limited partnership - general partnership), the amendment shall be made to the same commercial register.

10. In the case of an amendment from sole proprietorship to a trust company, the commercial register issued for sole proprietorship shall be deregistered, and a new commercial register for the trust company shall be brought, stating the deregistration of the previous commercial register.

Deregistration of industrial registration:

• The industrial registration shall be deregistered in any of the following cases:

1. Deregistration shall be based on a justified request from the owner of the facility.

2. The facility shall be deregistered if it is transferred to another address, and a new registration shall be opened with a new number.

3. Suspension of work for one year (based on technical inspection indicating the removal of machinery and equipment).

4. Deregistration shall occur in the event of a change in activity from industrial to commercial or service-related.

5. If it is proven that any of the documents submitted are false.

6. If it is proven that the address is fictitious and not real.

7. If the certificate or some of its details are proven to be forged.

• The documents required for the deregistration are as follows:

1. Application form for deregistration of the industrial register.

2. A copy of the power of attorney or bank authorization, with the original submitted for review, along with a copy of the national ID card of the proxy or representative.

3. Deletion of the industrial facility's address from the commercial register/deletion of the commercial register.

Therefore, it is now clear that industrial registration and operating licenses are no longer mere procedural requirements, but have become the legal basis for industrial facilities to operate within the industrial market under Law No. 15 of 2017 and its Executive Regulations. The law has contributed to simplifying the licensing system and adopting more flexible mechanisms through a notification or prior approval system, thereby striking a balance between encouraging investment and ensuring compliance with technical and environmental standards.

Obtaining an industrial registration and operating license grants industrial facilities legal confidence and enables them to benefit from government incentives and financing facilities and enter into formal contracts. It also avoids legal accountability and penalties that could lead to the administrative closure of the facility.

Within this context, Sadany & Partners Law Firm plays a prominent role as a legal partner specializing in industrial licensing. It provides full support to investors at all stages of registration and operation, including study and classification of industrial activities, through the preparation of legal documents and coordination with the General Authority for Industrial Development. Our firm also provides services, including duly obtaining the registration certificate and operating license, ensuring the facility can carry out its activities with confidence and sustainability.

Compliance with the legal framework governing industrial registration and operating licenses, with the assistance of specialized legal experts, then represents a solid strategic investment that sets the facility on the path to sustainable success within the Egyptian industrial market.