Establishing Smart Land Transport Companies in Egypt 2025: Procedures and Law 87 of 2018

Over the past few years, Egypt's land transport sector has been revolutionized by technological advances, with new models emerging that rely on smartphone apps to organize transport and connect drivers with passengers or companies in real time. With the growing prevalence of such services, including smart transportation companies, there is a need to establish a legal framework to ensure their regulation and protect the rights of all parties.

In this context, Law 87 of 2018 on Regulating Road Transport Services Using Information Technology was issued. It is the first Egyptian legislation to comprehensively regulate this activity. The law requires companies operating in this field to obtain a license from the Ministry of Transport upon meeting specific technical, financial, and legal conditions. It also requires companies to comply with personal data protection regulations, operational safety standards, and the rights of employees and drivers.

This article highlights the legal framework for establishing land transport companies using information technology in Egypt. It outlines the steps and procedures required to obtain a license, while shedding light on the legal obligations imposed on such companies and the role of the state in regulating this vital sector in a manner that strikes a balance between technological development and public safety and security requirements.

• Irregular transport activities may only be carried out after obtaining licenses from the Land Transport Regulatory Authority (TRA).
• After the licensee obtains the license issued to provide land passenger transport services using information technology, they may not assign without the approval of the Minister of Transport, in accordance with the specified requirements. They shall also notify the TRA of any change or amendment in the data related to the company, the license, or the contact details.

The most important basic requirements for licensing land transport using information technology are:

1. Establishment of an Egyptian company: One of the purposes of the Egyptian company to be established is to provide land transport services using information technology, subject to Law 159 of 1981.

2. Providing an electronic platform or smart application registered under the company's name to securely connect transport service users and drivers.

3. Securing user and driver data and information, in accordance with the provisions of Personal Data Protection Law 151 of 2020.

4. Compliance with the technical requirements for vehicles used in operations in terms of licensing, periodic inspection, and safety specifications.

5. Paying the fees due for obtaining and renewing the license.

6. Hiring licensed drivers who meet the necessary legal and professional requirements.

The procedures for obtaining a license for first-time service providers are as follows:

To obtain a license for providing passenger land transport services using information technology for the first time, the following procedures shall be followed:

• Step 1:

- A company wishing to obtain a license shall apply in accordance with the form prepared by the Ministry of Transport, including the number of vehicles or means of mass transportation required to be operated in accordance with the numbers listed in the license category tables. The following documents shall be attached to the application:

1. Recent extract from the company's commercial register.

2. The company's investment gazette.

3. Valid tax card.

4. VAT registration certificate.

5. A certificate from Social Security Authority (SSA) confirming the company's registration and payment of social security contributions.

6. The company's budget for the last three years or the opening budget for the new company, approved by the auditor.

7. The main organizational structure approved by the company, a list of the names and details of the executive directors, and copies of their identity documents.

8. Any other documents requested by the Ministry.

• Step 2:

The Ministry of Transport shall notify the company submitting the license application of the outcome of the application review within 30 days of the date of submission.

If the license is denied, the reasons for the denial will be stated. The company has the right to resubmit the application.

If the license is approved, the license fee will be determined based on the number of vehicles, as specified in the notification. The amount payable will be 25% of the license value, which shall be deposited into the bank account specified by the Ministry of Transport.

• Step 3:

Licensed companies shall provide national security agencies with all necessary data and information to the competent authorities. After the Ministry of Transport obtains approval from the security agencies for the applicant company, by a letter from the National Telecommunications Regulatory Authority (NTRA) confirming that the technical requirements have been met in accordance with the conditions of the national security agencies, preliminary approval is issued.

The applicant company shall submit a bank notification of the transfer of 25% of the license fee, a certified copy of the cooperation protocol signed by the Ministry of Social Solidarity regarding the framework of the social insurance system, and a copy of the regulatory compliance certificate and the original for review.

• Step 4:

After examining these documents, the following declarations are obtained from the applicant company:

• The provided data and information are accurate.
• Payment of the remaining license fees on the specified dates in accordance with the license period.
• That the company is aware of all the license terms and conditions.

The final license is then issued, approved by the Minister of Transport for a renewable period of five years. The security agencies, the relevant department at the Ministry of the Interior, the Egyptian Tax Authority, the National Telecommunications Regulatory Authority, and the General Authority for Social Insurance are notified.

Companies licensed to provide passenger land transport services using information technology shall adhere to the following:

1. Obtaining insurance numbers for the system vehicles and drivers.

2. Selecting drivers based on ethical and professional standards, and conducting periodic drug testing for drivers.

3. Providing training and qualifying drivers on the app application; and conducting periodic vehicle inspections to ensure that they are in good condition.

4. Maintaining e-records of operational trips and driver information for a period of no less than 180 days.

5. Allowing security agencies to access information upon request.

6. Paying taxes, insurance, and fees regularly.

7. Maintaining the confidentiality and privacy of data, information, and networks.

Revocation of the license of companies licensed to provide passenger land transport services using information technology:

Without prejudice to any act constituting a criminal offense, the license shall be automatically revoked without prior warning in the following cases:

1. If it is proven that it directly or indirectly obtained the license by fraudulent means, either by itself or through a third party.

2. If the company goes bankrupt or becomes insolvent.

3. If the company assigns the license in whole or in part without obtaining the approval of the Ministry of Transport.

Land transport using IT has become one of the most attractive fields for investment in Egypt. At the same time, it's one of the activities that requires strict compliance with laws and regulations, especially Law 87 of 2018 and its Executive Regulations.

To ensure success and continuity in this field, companies shall comply with all regulations, place special emphasis on protecting user and driver information, and document the legal relationship between them with clear contracts. They shall also ensure operational safety and full compliance with the Ministry of Transport instructions in this regard.

Here, Sadany & Partners Law Firm plays a key role, with its extensive experience in establishing smart transport companies, preparing licensing files, and drafting contracts and legal policies in accordance with recent Egyptian legislation.

We assist our clients in avoiding legal and procedural obstacles and ensuring that all technical and regulatory requirements are met. Thus, we guarantee that licenses are obtained quickly and efficiently, allowing clients to commence operations within a secure and stable legal framework.