العربية• Factory Setup in Egypt
Buying an existing factory starts with reviewing the land and the licence
Transferring ownership of a factory is not limited to selling shares or assets: industrial land is subject to assignment procedures before the Industrial Development Authority, and the licence is tied to the premises. We review the factory, its land and its licences before signing, and handle the assignment and transfer of ownership through to completion.
• What we review before we start
- The land position: allocation, handover and existing obligations.
- The operating licence, industrial registration or grace period granted.
- The legal form of the owning company and the transfer method.
- Any outstanding penalties or violations.
• What our support covers
How we work with you
- Legal due diligence on the factory, its land and licences.
- Drafting the sale or acquisition agreement.
- Land assignment procedures before IDA.
- Amending records and licences after the transfer of ownership.
• Points to consider
Before signing
- Assigning the land requires documents set by IDA, including the handover record, the company contract and its latest amendments, the commercial register of both parties, and the operating licence, permanent registration or grace period granted.
- On a change of legal entity, the person to whom the unit was allocated must hold 51% of the new company.
- The licence is tied to the premises, lapses when the establishment ceases to exist, and cannot be transferred to another location.
The information on this page is based on the website of the Industrial Development Authority (IDA), and on Law No. 175 of 2022 regarding pre-merger control, and should be checked against the official texts before any decision is made.
• How we work
How we work on the transaction
1. Legal due diligence
We review the land, licences, registration, obligations and disputes before negotiation.
2. The agreement
We draft the sale or acquisition agreement to reflect the due diligence findings.
3. Assignment
We prepare the land assignment documents and follow them up with IDA.
4. After the transfer
We handle amending the records, licences and registration in the new owner’s name.
• FAQs
Common questions about factory ownership transfers
Can industrial land be assigned?
Yes, subject to the conditions and documents set by the Industrial Development Authority, including the handover record, the commercial register of both parties and the operating licence, permanent registration or grace period granted.
What happens to the licence on a transfer of ownership?
The licence is tied to the premises and lapses when the establishment ceases to exist. We review its status, and what is needed to update its details after the transfer, as part of the legal due diligence.
Does buying a factory need Competition Authority approval?
That depends on the size of the transaction and the parties. Some economic concentrations are subject to pre-merger control once they meet the thresholds set under Law No. 175 of 2022.
• Related areas
Your matter may also involve
• Your next step
Considering buying an existing factory in Egypt?
Send us the factory and transaction details, and we will define the scope of legal due diligence and the steps involved with you.
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