Media Institution Licensing In Egypt | Law 180 Of 2018 Requirements

Step-by-Step Guide to Media Institution Establishment in Egypt

The media sector in Egypt is experiencing unprecedented expansion, driven by the development of digital technology and growing demand for visual, audio and electronic content. With this rapid growth, establishing a media institution, whether it be a satellite channel, an online platform, a digital newspaper, or a media production company, has become a promising investment opportunity that requires a deep understanding of the legal framework governing this sector.

With the enactment of Law 180 of 2018 on Press, Media and the Supreme Council for Media Regulation (“Law”), the licensing and establishment procedures have become clearer, but, at the same time, require specialised legal expertise to ensure strict compliance with all conditions and controls.

This Article provides a simplified and comprehensive practical guide for investors and professionals wishing to enter the Egyptian media market by reviewing the most important legal requirements, procedural stages, and regulatory controls necessary for establishing and operating media institutions. It also highlights the role of the relevant authorities, the most important challenges that may affect investors, and how to overcome them efficiently to ensure a sound and successful legal start.

Whether you are an investor seeking to establish a satellite channel or a professional seeking to launch a digital media platform, this Article provides a reliable legal reference that will help you take informed steps in line with the advanced Egyptian legislation and make the most of the opportunities available in this vital sector.

 Media institutions are institutions that manage media outlets (terrestrial and satellite television channels, radio stations, and electronic media). There are public media institutions established by the National Authority for the Management of Public Media.

 A website is a licensed page, link, or electronic application through which journalistic, informational, or advertising content is presented in text, audio, or video form, whether static, animated, or multimedia. It is published under a specific name, has a specific address and domain, and is created, hosted, or accessed through the international information network (the Internet).

 Online media or commercial advertising services are content that promotes businesses, services, products, or individuals through the international information network (the Internet).

 Basic regulations on media institutions and websites:

1. Media institutions and websites are prohibited from publishing or broadcasting any material or advertisement that contravenes the provisions of the Constitution and the Law, violates the code of professional ethics, public order or public morals, or incites violence, racism or hatred.
2. No media outlet or website shall be licensed or permitted to continue operating if it is based on religious or sectarian discrimination, discrimination based on gender or origin, sectarian or ethnic discrimination, or incitement to obscenity, hatred, or violence.
3. Websites may not be established in Egypt without obtaining a licence from the Supreme Council for Media Regulation.

 The Authority Competent for Granting Licenses to Media Outlets or Websites:

 No media outlet, website, or advertisement may be established or operated without first obtaining a licence from the Supreme Council for Media Regulation (“Council”). The Council shall determine the conditions and requirements for such licences.

 The National Telecommunications Regulatory Authority (“NTRA”) is responsible for issuing licences for the establishment or operation of telecommunications networks or the provision of telecommunications services.

 Broadcasting or rebroadcasting from outside the media areas approved by the Council is not permitted. As an exception, broadcasting from outside such areas is permitted provided that the office or company has an operation studio at the Egyptian Media Production City. A prior permit is issued by the Council, specifying the time and place of broadcast.

 Main requirements for establishing and owning a media outlet or website:

1. Egyptians (natural or legal, public or private, persons) have the right to own media outlets or websites. Foreigners may not own a majority stake or a stake that grants them management rights.
2. Anyone who owns or contributes to the ownership of a media outlet or website shall not be deprived of exercising their political rights. They shall not have been convicted of a felony or misdemeanour involving dishonesty or breach of trust, unless their reputation has been cleared.
3. Media outlets that broadcast or rebroadcast audio, visual, electronic, or digital content on the international information network shall be organized as companies consisting of one or more persons.
4. The company may not own more than seven television channels, and may not include more than one general channel and one news channel.
5. The Council shall prepare a form for licensing media outlets or websites to engage in media activities. The form shall specify the media outlet or website's purpose, target audience, editorial policy, the names of chairperson and board members, and articles of association, in accordance with the licence application.
6. The media outlet or website shall appoint an Egyptian manager registered with the Media Professionals or Journalists Syndicate to be responsible for the content of the channel's visual, audio, or digital programmes.
7. The media outlet shall appoint a person responsible for broadcasting, who must be full-time and have full legal capacity.
8. Media outlets and websites shall bear legal responsibility for any errors in the exercise of their activities, as well as for any violations of the professional values or standards established by the Council.

 Licensing of media institutions and websites:

1. 1. Before obtaining the media licence, the legal entity of the company shall be established, and the memorandum of association or articles of association, commercial register and tax card shall be issued.
2. A bank account shall be opened and capital shall be verified in accordance with the followinglegal regulations:
   • The authorised capital of the company operating the news or public television channel shall not be less than EGP 50 million.
   • The capital of the specialised television channel company shall not be less than EGP 30 million.
   • The capital of the company for each radio station shall not be less than EGP 15 million.
   • The capital of the company for the television station or electronic or digital channel on the website shall not be less than EGP 2.5 million.
   • Half of the amount shall be deposited in a bank supervised by the Central Bank, prior to the commencement of broadcasting, for a period of at least one year. This amount shall be used to cover the station or channel's operating expenses and to pay the salaries of employees.
   • As an exception, the Council may, for reasons of public interest and by reasoned decision, grant broadcasting licences to companies whose capital is less than the amounts specified above.
   • The company's founders shall subscribe to or contribute at least 35% of the company's capital. This percentage shall not decrease during the five years following the granting of the broadcasting licence.
   • Public media institutions and public media outlets are exempt from the above requirements.
3. Application for a license to establish or operate a media outlet or website shall be submitted to the General Secretariat of the Council, as per the specified forms. The required information shall be provided (name, surname and nationality of the owner of the media outlet; language of broadcasting, type of activity and sources of funding – if the owner is a legal entity, the commercial register shall be submitted).
   
   The application shall be accompanied by a receipt for payment of the applicable fees, which are: EGP 250,000 for the media outlet and EGP 50,000 for the website. Following examination of the application, a report on the status of the application shall be prepared and submitted by the Licensing Committee to the Council, within 30 days of the date of referral of the application, for consideration of whether or not to issue the licence. The Council shall issue its decision on the application for acceptance or rejection within 90 days of the date of receipt of the application. The applicant shall be notified of the Council's decision by registered letter with acknowledgement of receipt.
4. Upon issuance of the decision by the Council, approving the licensing of media institutions, the licence shall be issued for a period of five years and may be renewed upon request by the licensee to the Council six months prior to expiry.
5. The media outlet shall be launched within one year of the date of issuance of the licence, unless the Council agrees to grant the licensee an additional year for reasons it deems justified.
6. Media outlets and websites shall publish their approved budgets and final accounts in two widely circulated daily newspapers within four months of the end of the financial year.

 Can media outlets be transferred to third parties?

The media outlet or any part thereof may not be transferred to a third party or merged into another media institution without first applying to the Council. Written approval from the Council shall be obtained prior to the transfer.

The application shall be submitted in accordance with the form prepared for that purpose and accompanied by the necessary documents specified by the Council.

A natural or legal person who owns or holds a share in a media outlet that entitles them to management rights shall, upon losing or relinquishing their Egyptian nationality, transfer ownership of the media outlet or the excess shares entitling them to management rights to an Egyptian natural or legal person within a maximum of six months from the date of losing or

relinquishing their Egyptian nationality. Written approval of the Council shall be obtained for such disposal.

If no action is taken during that period, the licence shall be suspended for six months. If no action is taken by the end of the suspension period, the media outlet's licence shall be revoked, unless the Council decides to extend the suspension period for another six months for reasons it deems appropriate.

In conclusion, establishing media institutions in Egypt is a process requiring a thorough understanding of the legal framework and licensing procedures. Despite the complexity of the requirements, specialised legal expertise makes the path clearer and safer. This highlights the role of Sadany & Partners Law Firm, a firm with a proven ability to support investors and professionals by providing accurate advice and managing incorporation and licensing files efficiently.

With Ssadany & Partners Law Firm, your media project transforms from an idea into a legal entity to be launched with confidence and stability.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.