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Establishing a business in Egypt is a promising step, but licensing costs can be a major challenge for many entrepreneurs and investors. With increased government fees and extensive documentation and procedures, the process can seem complicated, especially on a limited budget.
At Sadany & Partners Law Firm, we believe that professional legal support should be accessible to all. Therefore, we aim to provide legally secure and cost-effective business licensing services that ensure full compliance with regulatory requirements.
Understanding Business Licenses in Egypt
Prior to commencing operations, your business must obtain the necessary commercial or industrial licenses, depending on your activity. This is usually done through the General Authority for Investment and Free Zones or the standard GAFI Egypt licensing procedures or other competent authorities, such as the Industrial Development Authority (IDA) or the Financial Regulatory Authority (FRA) for regulated sectors.
The main licenses include the following:
- Commercial license: For commercial and service companies.
- Industrial license: Factories and manufacturing projects.
- Professional or consulting license: Businesses offering technical or legal expertise.
- Tourist, real estate, or health licenses: Specialized sectors requiring additional ministerial approvals.
All licenses are subject to specific government fees, documentation requirements, and legal procedures, all of which can be optimized through strategic legal planning.
What makes a license "economical"?
Cost reduction should not mean lower-quality procedures. It means adopting a sound legal structure and clear planning. The following explains how career guidance contributes to reducing costs in the long term:
- Choosing the appropriate legal structure
Licensing costs depend largely on your business's legal form. For example:
- Registering a limited liability company (LLC) is faster and less expensive than a joint stock company (JSC).
- Establishing a "branch office" may save you the costs of "incorporating a company" if your parent company already exists overseas.
Our team at Sadany & Partners Law Firm will assess your goals, your company's capital, and your exposure to risk to recommend the most cost-effective legal structure that also protects your rights.
- Avoid rejection or delay
Most extra costs result from submitting incorrect files or missing documents.
We ensure that every document, including articles of association, security clearances and Arabic translations, meets the GAFI's standards the first time around, preventing resubmission fees or undue delays.
- Simplified license packages
We offer comprehensive legal services, including:
- Drafting and notarizing the articles of association.
- Registration with the GAFI and obtaining a commercial license.
- Registration of taxes and social insurance.
- Verifying the lease agreement and address.
By handling all steps internally, we reduce third-party fees and ensure a faster workflow.
Government fees vs. legal fees – explaining the difference
Foreign investors often confuse official government fees with legal or advisory fees.
|
Type of fees |
Description |
Recipient |
|---|---|---|
|
Government fees |
Mandatory fees for registration, name reservation, or licensing. |
Egyptian authorities (GAFI, Tax Authority, Chamber of Commerce). |
|
Legal/service fees |
Professional drafting, translation, and presentation fees. |
Law firm or certified advisor. |
At Sadany & Partners Law Firm, all fees are clearly detailed in your quote, so you always have a clear understanding of your costs and their purpose.
Common mistakes that increase licensing costs
Even the most affluent investors can sometimes make costly mistakes during the licensing phase. We advise you to avoid such mistakes:
- Unsuitable activity description – Choosing a broad or inaccurate scope of work may result in resubmission of approvals.
- Failure to comply with foreign ownership rules – Certain activities still require Egyptian participation or specific approvals.
- Post-licensing compliance failure – Failure to meet deadlines for tax registration or annual filings may result in penalties.
- Engaging unqualified intermediaries – Unqualified agencies may offer "cheap services," but in this case, investors risk losing their licenses or getting involved in legal disputes later on.
Tip: ALWAYS make sure that your consultant is a licensed and authorized legal firm that can represent you before the GAFI.
How does Sadany & Partners Law Firm offer economic licenses?
Our legal team develops legal packages that combine affordability, transparency, and full legal protection.
Our licensing services include:
- Legal advice and choice of business structure.
- Preparation and documentation of the memorandum of association.
- Registration with the GAFI and the Commercial Registry.
- Industrial or professional licenses, where applicable.
- Filing taxes, value-added tax, and social security. contributions.
- Renewal and compliance consultations.
Our Methodology:
- Budgetary planning: We evaluate your available capital and customize your establishment plan accordingly.
- Fixed legal fees: No more hourly billing – all services are offered at a fixed package price.
- Quick processing: Our established relationships with the GAFI and other authorities reduce waiting times.
- Bilingual documentation: All contracts and documents are prepared in both Arabic and English to ensure transparency and clarity.
Real-life example: Licensing cost savings
A European investor who intends to establish a manufacturing business in Alexandria contacted us. Another investor advised him to establish a joint-stock company, which is an expensive option.
After reviewing the proposal, we suggested establishing a limited liability company under Investment Law 72/2017, which still allows for full foreign ownership and repatriation of profits. Thus:
- Overall establishment costs decreased by more than 40%.
- We obtained the industrial license and tax card within 21 days.
- The company began operating at full capacity without exceeding its original budget.
Why Sadany & Partners Law Firm?
- Transparent costing: No hidden or excessive fees—every item is itemized.
- Comprehensive legal oversight: We manage all legal, tax, and compliance steps.
- International experience: Ideal for investors from the GCC, Europe, and Asia.
- Speed and reliability: Decades of hands-on experience with Egyptian authorities.
- Long-term relationship: We support clients beyond the establishment phase, handling renewals, expansions, and compliance audits.
Conclusion
Book your consultation appointment now
Licensing low-cost businesses in Egypt does not imply seeking hasty or incomplete solutions, but rather adopting a well-thought-out legal plan. This plan achieves real cost reductions while ensuring full compliance. With Sadany & Partners Law Firm, you will be offered a professional and transparent approach to pricing that is tailored to your goals and budget.
Regardless of your type of business—startup, new branch, or industrial project—our legal team offers an economical licensing plan tailored to your needs
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.
