The Micro, Small, and Medium Enterprise Development Agency (MSMEDA) managed to formalise the statuses of more than 7,000 projects in various governorates since the issuance of Enterprise Development Law 152/2020 and its executive regulations in 2021, according to a statement it released.
It added that work is under way to formalise the statuses of thousands of projects, whether funded by the agency or other parties.
Furthermore, it said that it is working in cooperation with various state agencies to provide various aspects of support for projects operating in the informal sector to help them transform into the formal sector and benefit from all the advantages offered by the new law.
The MSMEDA also presented the experiences of young people in integrating into the formal economy and how their projects benefited from the transition.
Alaa Ibrahim — the owner of car oils and filters trading business in Qaliubiya — says: “At the beginning of this year, I applied to the MSMEDA to formalise the status of my project, as I have been working informally since 2019. I obtained the temporary license in a few days, and I am now enjoying a five-year tax exemption.”
“Two months after I formalised my business’ status, I obtained the first tranche of financing from the MSMEDA, which was worth almost EGP 250,000 and helped me purchase the materials and equipment needed to expand and develop my project,” he added.
Another beneficiary, Hany Nasrallah — who has been working in the manufacture and trade of decorations and antiques for 19 years — explained that he decided to regularise the conditions of his project based on the manufacture of copper lamps and antiques in the year following the issuance of the SMEs Law.
“This has enabled me to integrate into the formal economy and given me access to several investment opportunities that helped my business grow,” he said.
Nasrallah described the process of formalising the status of his business as “very simple”. He said that the reason for this is the support the MSMEDA provides and the staff of the one-stop office that were keen to provide high-quality services to clients.
From Giza, Salah Abdel Razek — an owner of an electrical and lighting factory — pointed out that the shift was a great solution for him after his license expired.
“After my license expired, I had to deal with several inspection campaigns, so I decided to visit the MSMEDA’s branch in Sixth of October City to obtain a license. Within two months, all procedures and inspections were completed by the competent authorities,” he said.
“After I obtained the temporary license, my business became a legal entity. I also obtained my classification and benefits certificates, and I registered my project in the government suppliers’ registry.”