It is important to take into account that this kind of enterprises is often run by one person or one family, which could enfeeble the enterprise's fi… - Nevine Gamea

The law has put into effect a stimulating mechanism that will enable enterprises operating in the informal sector to engage in the formal economy. Such a mechanism will allow them to obtain a temporary licence for a period up to five years until their conditions have been reconciled. They will similarly be entitled to a package of financial and non-financial incentives in the same period.

The law sets that informal enterprises applying to formalise will be exempt from the stamp duty and registration fees for five years. It also states a unified custom duty of two percent of imported machines and equipment and that capital gains resulting from assets and production equipment will be exempt from taxes with conditions.

The law gives as well more financial and non-financial incentives, which targets the companies and institutions that support these enterprises. In addition, it adopts simplified bases for taxes imposed on these enterprises and develops mechanisms to put these incentives in action.