Dealing with Construction Permits in
Egypt, Arab Rep.
Listed below is detailed summary of the procedures, time and costs to build a warehouse —including obtaining necessary licenses and permits, completing required notifications and inspections and obtaining utility connections.
The information appearing on this page was collected as part of the Doing Business project, which measures and compares regulations relevant to the life cycle of a small- to medium-sized domestic business in 183 economies. The most recent round of data collection for the project was completed in June 2011.
-
Building a warehouse
-
Estimated Warehouse Value:
EGP 1,000,000
- City: Cairo
| No. |
Procedure |
Time to Complete |
Associated Costs |
| 1 |
Obtain technical approvals from independent syndicate engineer
To obtain technical approvals, BuildCo must submit documents, including the approval of the colored cadastral map; the approval of probe estimation; the execution supervision certificate (fee EGP 250–350); approval of architectural drawings (fee EGP 150–200); accounting book; report confirming the construction quality of the building foundations (fee EGP 250–300); and a soil investigation report (fee EGP 1,000).
Agency: Independent syndicate engineer
|
9 days
|
EGP 1,750
|
| 2 |
Submit building permit application to municipal authority
To obtain a building permit, BuildCo must file with the District Department the following documents, along with the ones described in the previous procedures: - Original ownership contract of the plot of land (notarized). - Measurement specification statement from the Survey Department. - Survey plan (aerial photography) specifying the location. That survey plan must be approved by an accredited syndicate engineer. - Alignment license, issued by the Urban Planning Department of Cairo Governorate. - Probe estimation, approved by a syndicated engineer - Execution supervision certificate, issued by a syndicate engineer or consultant engineer, if the building value is more than EGP 1 million. - A receipt attesting the payment of fees for the duty for examination of the drawings and details - A general drawing of the site (scale minimum 1:1,000) that indicates (a) the boundaries and dimensions of the land for which the permit is required, together with the total land area; and (b) the part on which construction is requested, as well as the facing roads and their widths. BuildCo must submit a file containing (a) a copy of the architectural drawings for the horizontal projections of floors and facades; (b) a vertical section, indicating the building height and the road's zero level and the structural drawings of the foundations, columns, and the enforced ceilings, together with copies of the structural calculation notes. All drawings must be signed by an accredited engineer. Also to be filed is a report from a structural engineer that confirms the structural skeleton and the foundations of the building (a) will tolerate the required licensed construction work and (b) are in compliance with safety provisions and will resist natural disasters according to Egyptian construction standards. The report must illustrate the soil composition at the site. If the building is elevated or modified, BuildCo must submit a report from a construction consultant (accredited for not less than 25 years), attesting that upon inspection and study of the existing buildings, the consultant has obtained proof of tolerance to the applicable loads subject to the license.
Agency: Municipality
|
1 day
|
EGP 7
|
| * 3 |
Obtain project clearance from electricity authority
Agency: Greater Cairo Electricity Authority
|
30 days
|
no charge
|
| * 4 |
Receive inspection prior to permit issuance from muncipality
Agency: Municipality
|
1 day
|
no charge
|
| * 5 |
Pay real estate tax at the tax authority
Agency: Tax Authority
|
1 day
|
EGP 30
|
| 6 |
Obtain building permit
The Construction Law establishes a 30-day statutory time limit for issuing building permits. These 30 days are counted only after all preliminary approvals are obtained. Law 4 of 2006 reduced the fee to obtain a building permit from 1% of construction cost to 0.2%.
Agency: Municipality
|
30 days
|
EGP 2,000
|
| 7 |
Receive on-site inspection from the municipality - I
The municipality will inspect the construction site on a regular basis (usually once a month but inspections can occur once every 2 weeks). Each inspection takes a day at most. It is assumed that the site is inspected every 3 weeks on average.
Agency: Municipality
|
1 day
|
no charge
|
| 8 |
Receive on-site inspection from the municipality - II
The municipality will inspect the construction site on a regular basis (usually once a month but inspections can occur once every 2 weeks). Each inspection takes a day at most. It is assumed that the site is inspected every 3 weeks on average.
Agency: Municipality
|
1 day
|
no charge
|
| 9 |
Receive on-site inspection from the municipality - III
The municipality will inspect the construction site on a regular basis (usually once a month but inspections can occur once every 2 weeks). Each inspection takes a day at most. It is assumed that the site is inspected every 3 weeks on average.
Agency: Municipality
|
1 day
|
no charge
|
| 10 |
Receive on-site inspection from the municipality - IV
The municipality will inspect the construction site on a regular basis (usually once a month but inspections can occur once every 2 weeks). Each inspection takes a day at most. It is assumed that the site is inspected every 3 weeks on average.
Agency: Municipality
|
1 day
|
no charge
|
| 11 |
Receive on-site inspection from the municipality - V
The municipality will inspect the construction site on a regular basis (usually once a month but inspections can occur once every 2 weeks). Each inspection takes a day at most. It is assumed that the site is inspected every 3 weeks on average.
Agency: Municipality
|
1 day
|
no charge
|
| 12 |
Receive on-site inspection from the municipality - VI
The municipality will inspect the construction site on a regular basis (usually once a month but inspections can occur once every 2 weeks). Each inspection takes a day at most. It is assumed that the site is inspected every 3 weeks on average.
Agency: Municipality
|
1 day
|
no charge
|
| 13 |
Receive on-site inspection from the municipality - VII
The municipality will inspect the construction site on a regular basis (usually once a month but inspections can occur once every 2 weeks). Each inspection takes a day at most. It is assumed that the site is inspected every 3 weeks on average.
Agency: Municipality
|
1 day
|
no charge
|
| 14 |
Receive on-site inspection from the municipality - VIII
The municipality will inspect the construction site on a regular basis (usually once a month but inspections can occur once every 2 weeks). Each inspection takes a day at most. It is assumed that the site is inspected every 3 weeks on average.
Agency: Municipality
|
1 day
|
no charge
|
| 15 |
Receive on-site inspection from the municipality - IX\
The municipality will inspect the construction site on a regular basis (usually once a month but inspections can occur once every 2 weeks). Each inspection takes a day at most. It is assumed that the site is inspected every 3 weeks on average.
Agency: Municipality
|
1 day
|
no charge
|
| 16 |
Receive on-site inspection from the municipality - X
The municipality will inspect the construction site on a regular basis (usually once a month but inspections can occur once every 2 weeks). Each inspection takes a day at most. It is assumed that the site is inspected every 3 weeks on average.
Agency: Municipality
|
1 day
|
no charge
|
| 17 |
Receive final inspection from by a committee from the Municipal Authority
After construction is done, the municipality makes a final inspection to certify that the warehouse conforms to the specifications outlined in the building permit.
Agency: Municipality
|
1 day
|
no charge
|
| 18 |
Obtain letters from Municipality about water and sewage connection
As described above, the company must obtain a form from the municipality to obtain water and sewage connections.
Agency: Greater Cairo Water Authority
|
1 day
|
no charge
|
| 19 |
Obtain certificate of natural disaster
A supervising engineer issues the certificate of natural disaster. The cost cited here reflects the fees for issuing the certificate.
Agency: Independent Syndicate Engineer
|
1 day
|
EGP 102
|
| 20 |
Obtain water and sewerage connection
BuildCo submits an application to the municipal department to obtain a letter to be provided to the water utility. Then the company submits an application to the competent water authority, along with the original license and a copy of the building permit. Fees include about EPG 10,000 for the water connection and EPG 5,000 for the sewerage connection.
Agency: Greater Cairo Water Authority
|
60 days
|
EGP 15,000
|
| * 21 |
Obtain phone connection
To obtain a phone connection, the company must submit the following documents: - Title deed for the unit, or lease contract, if not owned by the applicant. - Copy of applicant’s identification. - Operators license for factories, stores, commercial stores, and workshops.
Agency: Telecom Egypt
|
18 days
|
EGP 850
|
| 22 |
Register the building with the real estate registry
The company must submit a building registration form, the building permit for the warehouse, and the primary purchase contract of the land on which the warehouse had been built. Law 83 of 2006 amended Decree No. 70 (1964) to decrease registration fees, which are now a flat fee of EGP 2,000 rather than a percentage of building value.
Agency: Real Estate Registry
|
75 days
|
EGP 2,000
|
* Takes place simultaneously with another procedure.