30 Applications for Startup Classification Certificate in Less Than 24 Hours

The Ministerial Group for Entrepreneurship announced that it has received 30 applications from companies seeking to obtain the Startup Classification Certificate (Startup ID) through the Micro, Small and Medium Enterprise Development Agency (MSMEDA), less than 48 hours after the launch of Egypt’s first-of-its-kind Startup Charter.

Startup Charter

The Startup Charter provides two application tracks for obtaining the classification certificate. The first is a fast-track process completed within five days for companies nominated by accredited entities such as venture capital funds, incubators, and accelerators. The second track takes up to two weeks and is available to all companies that meet the startup classification criteria.

Strong Demand

In this context, Dr. Rania Al-Mashat, Minister of Planning, Economic Development and International Cooperation and Chair of the Ministerial Group for Entrepreneurship, said that the strong turnout from startups applying for the classification certificate reflects the effectiveness of the incentives included in the Startup Charter.

She added that discussions held over more than a year resulted in initiatives that genuinely meet the needs and aspirations of startups.

Classification Certificate Benefits

She noted that the classification certificate enables startups to benefit from facilitations stipulated in laws and regulations, in addition to tax incentives. These include access to dedicated tax offices for startups to speed up services and improve communication, as well as facilitations related to labor offices and the simplification of investment procedures in general.

High-Growth Definition

According to the Charter, a startup is defined as a newly established company characterized by rapid growth, flexibility, and innovation, aiming to offer or develop an innovative product, service, or business model in the market.

The definition includes six main criteria: being innovative, having a legal structure that allows investment, being established for less than seven years, having high-growth potential, relying on technology or intellectual property, and addressing a clear market problem.

The classification certificate is valid for three years and can then be renewed every two years until the company reaches seven years from its establishment date, after which it moves into the scale-up stage.

Joint Cooperation

For his part, Basel Rahmy, CEO of MSMEDA, explained that the agency’s board approval, chaired by the Prime Minister, of the unified definition and criteria for startups came as a result of joint cooperation with all members of the Ministerial Group for Entrepreneurship and its working teams.

The definition was also shaped through community dialogue and takes into account the special nature of startups. He said the goal is to adopt this definition in developing targeting mechanisms and designing specialized financial and non-financial programs to support Egyptian startups in growth and expansion.

Supporting Startups

Rahmy emphasized MSMEDA’s commitment to supporting Egyptian startups and entrepreneurs, as demonstrated by the launch of Egypt’s first-ever Fund of Funds, dedicated to investing in venture funds across different startup stages.

He added that the companies applying for startup classification certificates operate across diverse sectors, including artificial intelligence, energy, education, manufacturing technology, fintech, and e-commerce.

Source: Press Release