Egypt has launched its first “Startup Charter” following over a year of consultations with 15 national entities and more than 250 representatives from the startup community, entrepreneurs, and parliamentary councils under the Ministerial Group for Entrepreneurship.

The initiative marks a shift in the government’s approach to supporting startups, entrepreneurs, and innovators, in line with directives from President Abdel Fattah El-Sisi.

Startups must obtain formal recognition from MSMEDA to access Charter benefits. Companies follow either a regular track, where a multi-stakeholder committee reviews them through staged evaluations, or a fast-track route reserved for startups nominated by accredited venture capital firms, incubators, or accelerators.

Approved status lasts two years and companies can renew it until they reach seven years, while a grievance mechanism addresses rejected applications.

The Charter provides financial and procedural support. Startups with annual revenues below EGP 20 million pay a simplified turnover-based tax of 0.4-1.5% and receive exemptions from capital gains, dividend tax, stamp duty, and registration fees.

Startups file VAT quarterly, and the government removes advance payments.

Procedural reforms include establishing dedicated startup desks in major tax offices. They enable company registration in one day and cap liquidation at 90 days to reduce the cost of failure.

The Charter improves startups’ access to public procurement. It allocates a significant portion to SMEs, grants pricing preferences in tenders, and provides clearer access to information, especially in sectors such as govtech, healthtech, and energytech.

The government supports international growth. It streamlines visas and work permits for foreign founders and talent, facilitates participation in international exhibitions, and provides access to European funding, including Horizon Europe grants.

A dedicated Scaleups Program targets companies that have raised more than US$10 million. The program aims to enable five unicorns and create 500,000 jobs over five years.

The Charter also establishes a unified financing initiative targeting US$1 billion in support.

It provides a comprehensive guide to government services and an Entrepreneurship Policy Observatory with a Council of Elders to monitor implementation and advise the Ministerial Group.

Featured image credit: Ministerial Group for Entrepreneurship