Start an IT Company in Egypt 2025 | GAFI & ITIDA Legal Guide

The world today is witnessing a rapid digital transformation, and technology is no longer just a tool but has become the core of the modern economy and the engine of sustainable development. In this context, technology and information technology companies have emerged as a key element in building the future, thanks to the innovative digital solutions they offer that contribute to the development of various sectors in the country.

In Egypt, the government has given great attention to encouraging investment in this vital sector through the issuance of modern legislation and the establishment of technology zones and investment incentives. This has made the establishment of technology companies a strategic opportunity for investors and entrepreneurs.

However, this success can only be realized if the company is established within a precise legal framework that ensures compliance and secure expansion. This is particularly important given the specific nature of technical activities that intersect with data protection laws, intellectual property, cybercrime, and investment.

Hence, it is important to clarify how to establish a company operating in information technology and obtain licenses to practice this activity, as follows:

Information technology means any means or set of interrelated or unrelated means used to store, retrieve, arrange, organize, process, develop, and exchange information or data, including everything related to the means or means used, whether wired or wireless.

The Information Technology Industry Development Agency (ITIDA) is the authority responsible for regulating and issuing licenses to electronic signature service providers.

The Egyptian lawmakers enacted Law 17 of 2017 to attract investors in all sectors, especially the information technology sector. They also specified several activities for investors that fall within information technology, the most important of which are:

1. Information and communications technology, including industrial activities, electronics design and development, data centers, outsourcing activities, software development, and technology education.

2. Software design and production.

- Characterization, analysis, and design of software, databases, and applications of various types.

- Designing, producing, and operating software and applications, creating databases and electronic information systems, and providing training on them.

- Production of electronic content in different forms, including audio, video, and data.

- Entering data into computers and electronic devices.

3. Design and production of computer equipment:

- Characterization, design, and development of various types of computer systems.

- Production, development, operation, and training on integrated systems.

4. Design, implementation, and management of information and communications infrastructure projects:

- Characterization and design of data transmission and circulation networks.

- Implementation and management of data transmission and exchange networks.

5. Communications and Internet services.

6. Projects investing in the development of intellectual property rights, including patents, models, and industrial designs.

7. Establishing voice, image, and data transmission networks and providing value-added services after obtaining a license from the relevant authorities, including mobile phone networks.

8. Establishing, managing, operating, and maintaining wired, wireless, and satellite communications stations and networks after obtaining a license from the relevant authorities, excluding radio and television.

9. Scientific research and development projects for development, projects supporting space science and remote sensing, and modern technology projects.

10. Establishing and managing training centers for the preparation of researchers and information technology transfer centers.

11. Establishing and managing centers for consultation and specialized studies in information and communications and development.

12. Technology incubators and entrepreneurship support.

13. Activities related to the conversion of traditional audio, video, and data content into digital content, including the digitization of scientific, cultural, and artistic content.

How to establish a company operating in the field of technology and IT

The incorporation process is carried out by the General Authority for Investment and Free Zones (GAFI), after fulfilling the requirements for incorporation, which are:

1. Determining the company's optimal legal form to clarify the possibility of conducting IT activities and registering electronic applications without restrictions.

2. Determining the company's trade name, as well as precisely defining the activities to be carried out, to know which licenses will be required.

3. Submitting documents to the GAFI and preparing the articles of association with the relevant lawyer.

4. Following the issuance of the decision approving the establishment, the company shall be registered and published in the commercial register, as well as the tax card registration.

5. Registration with the Information Technology Industry Development Agency (ITIDA) to obtain accreditation as a technology service provider.

6. Obtaining all necessary licenses to provide technical and information technology services (e.g., Design and production of programs and applications, creation of databases and electronic information systems).

Regulation of IT activity licenses.

The Information Technology Industry Development Agency (ITIDA), attracting investment and investors, provides licensing services for certain specialized activities in the field of information technology and communications. This aims to support the growth of the technology market and stimulate the digital business environment.

These licenses are issued for certain technological activities, namely:

1. Software design, production, and development services.

2. Design, development, production, supply, and operation of information technology systems.

3. Website, platform, and electronic transaction services using the Internet.

4. Design and development services for electronics and embedded systems, and production of electronics in the field of information and communications technology.

5. Traditional content digitization services using information technology.

6. Call center services and business management using information and communications technology.

7. Consulting, research, development, and entrepreneurship services in the field of information and communications technology.

8. Training and education services in the field of information and communications technology.

The documents required for issuing activity licenses are as follows:

1. The company's commercial register, tax card, stating the location of the company's headquarters.

2. The company's articles of association or memorandum of association.

3. Personal identity of the company's legal representative or authorized manager (national ID card or passport).

4. Submitting the form prepared by the ITIDA, either in paper or electronic form. The form shall be submitted by the company's legal representative on behalf of the principal, or by a person authorized by the company's legal representative to deal with the ITIDA, and stamped with the company's seal and bank seal.

5. Providing a description of the activity, i.e., a clear description of the electronic application or digital service to be registered and the basic technical data.

6. If the application handles personal data or financial services (payments), data protection policies or relevant compliance certificates may be requested (e.g., Data Protection Notice).

7. Signing of documents and services by the legal representative, whether by electronic signature or electronic seal.

8. Paying the required fees or applying for exemption, if eligible.

9. The company shall be registered in the database of the ITIDA. In some cases, the ITIDA may require additional documents depending on the type of digital service, the size of the company, or the type of data it handles.

Opportunities of digital growth in Egypt and support from the Egyptian government.

The Egyptian government has adopted a clear vision for digital transformation and encourages investment in technology through:

• Establishment of technology zones in various governorates (e.g., Burj Al Arab, Assiut, and Beni Suef, for the localization of the software industry.)
• Launching initiatives to support digital transformation and human resource development (e.g., Egypt Digital Platform – Future Technology Leaders).
• Supporting innovation incubators and technology SMEs through the ITIDA.
• Providing tax and customs incentives to companies engaged in the export of information technology services.
• Presenting digital cooperation initiatives to all Egyptian, Arab, and foreign companies.

Al Saadani Law Firm's role in establishing technology companies in Egypt.

Al Saadani Law Firm is a leading law firm in the field of trade and technical law, providing comprehensive services including:

- Establishing technology companies in accordance with Egyptian law.

- Registering intellectual property rights for software and trademarks.

- Drafting technical contracts and data protection.

- Representing companies before the General Authority for Investment and Free Zones (GAFI) and the Information Technology Industry Development Agency (ITIDA).

- Providing legal advice to entrepreneurs and investors in the technology sector.

In conclusion, in light of the rapid digital transformation in Egypt and the region, establishing a technology company is no longer merely an entrepreneurial step but rather a strategic decision that requires a sound legal foundation. This foundation ensures the sustainability and protection of the project, in accordance with regulatory requirements, particularly with regard to data protection, intellectual property, and electronic transactions.

Thus, it is crucial to consult a specialized legal advisor with extensive experience in the legislative framework of the technology sector and who is knowledgeable about the nature of digital activities and their regulatory requirements.

Al Saadani Law Firm offers you its comprehensive legal expertise in establishing technology companies, filing and registering e-applications, and protecting your digital rights, ensuring a secure start and sustainable investment in the technology sector.