Services & operating contracts
The most common contract in Egyptian business. Drafted carefully to separate best-efforts from result-guarantees, with clear clauses on liability, change orders, and termination.
Operations & compliance
A legal guide to running your Egyptian company: contracts, labour regulations, licensing, and ongoing regulatory and tax compliance.
A working reference for business owners and management teams: what to contract for, with whom, how, and under what regulatory and tax framework. Published as a public resource — free to use.
Public content, periodically updated according to the laws in force in Egypt. Does not constitute legal advice tailored to your specific facts.
Operations at a glance
The numbers that govern the operation of any company in Egypt.
- 7
- Days to register an employee with NOSIStatutory window to notify the National Organization for Social Insurance after hiring.
- 15
- Minimum workers before internal regulations kick inAbove the threshold, approving internal labour regulations becomes mandatory.
- 06
- Regulators a business typically intersectsETA · NOSI · GAFI · FRA · IDA · Ministry of Labour — depending on activity.
- 14/2025
- New Labour LawThe latest law governing employment relations, fixed-term contracts, and the new social wage framework.
- 500K
- EGP — VAT registration thresholdTaxable sales above EGP 500,000 per year — registration is mandatory.
- 100%
- E-invoicing mandatoryAll B2B transactions must be issued through the e-invoicing portal.
IOperating contracts
Six contract types that demand careful drafting — a short guide.
A good contract settles 80% of future disputes before they arise. Ordered by frequency in the Egyptian context, with the key risk areas flagged for each type.
Distribution & commercial agency
Egypt's commercial-agency law protects the commercial agent under non-derogable statutory rules — compensation is due on unjustified termination. Careful drafting avoids disputes early.
Supply & procurement contracts
Given FX and price volatility since 2024, pricing terms, periodic review mechanisms, and force-majeure clauses matter more than ever.
Commercial & industrial leases
Leases after the 1996 law enjoy wide contractual freedom; older leases follow special rules. Precisely determining the applicable regime is step one.
Technology & SaaS subscription contracts
The Personal Data Protection Law (151/2020) imposes clear obligations on every data processor — integrated explicitly into the contract with compliance and notification clauses.
Construction & works contracts
The ten-year decennial liability for construction defects is codified in the Egyptian Civil Code. Addressed via insurance, bank guarantees, and a considered dispute-resolution mechanism.
IILabour regulations & workforce
Seven steps that organise employment relations inside the establishment.
The new Labour Law 14/2025 reset the employer-worker relationship. These steps summarise the core obligations from day one through end of service.
- I
Open the employer file
Register the establishment with NOSI at operation start, obtain the employer ID that will link all future worker files.
- II
Draft employment contracts
Written employment contracts are mandatory and detailed — covering salary, term (fixed or indefinite), working hours, duties, allowances, and termination. New Labour Law 14/2025 updates probation and renewal terms.
- III
Register the worker for social insurance
Notify NOSI within seven days of hiring; calculate contribution on the insured wage (monthly employer + employee portions).
- IV
Approve the internal regulations (above 15 workers)
Internal regulations govern wages, hours, leaves, and penalties — approved by the competent administrative body after its observations (if any).
- V
Foreign-worker permits
Individual permits obtained from the Ministry of Labour, respecting the foreign-labour quota (10% as a general rule, with exceptions).
- VI
E-invoicing system and payroll
E-invoicing enrolment is mandatory at activity start — with salaries, monthly salary tax is withheld and remitted with the quarterly return to the Tax Authority.
- VII
Manage termination and severance
Employment termination follows statutory grounds or mutual agreement, with settlement of termination dues, unused leave, and end-of-service gratuity where applicable.
IIISector licensing
Six licensing regimes covering most regulated activities in Egypt.
Non-banking financial licensing
FRA — securities, finance, leasing, insurance, microfinance. No activity before licensing.
Industrial licensing
IDA — industrial register, operating permit, environmental compliance certificate, inventory specifications.
Banking-sector licensing
CBE — banks, exchange companies, money-transfer companies, electronic payment services.
Specialised sector licensing
MoH for pharma/medical, MoE for educational services, NTRA for telecoms, Central Auditing Organization for public-sector dealings.
Personal data protection
Law 151/2020 established the Personal Data Protection Centre (PDPC). Obligations include registration, a data-protection officer, and breach notification.
Consumer protection & competition
Consumer Protection Agency, Competition Authority. Larger companies are subject to economic-concentration notification.
IVOngoing regulatory compliance
Six tracks that keep the establishment on the legal line over time.
Periodic disclosures
Annual audited financial statements — JSCs and regulated entities also file quarterly and semi-annual disclosures depending on activity.
Commercial-register updates
Every change in capital, partners, address, or management is registered within a statutory window to avoid mismatch between reality and the official record.
Tax compliance
Annual income-tax return, monthly VAT, salary tax, and withholding tax. Strict deadlines.
Corporate governance
General assemblies, board resolutions, budget approvals, dividend distributions — properly recorded minutes protect the management.
Intellectual property protection
Trademark, industrial design, and patent registration. Egyptian Office registration enables local protection and paves the way for international filing.
Regulatory change monitoring
FRA decisions, Tax Authority circulars, CBE instructions, and labour-law updates — reviewed periodically to avoid unintended non-compliance.
VTax compliance
Six tax obligations that Egyptian companies face every operating cycle.
Corporate income tax
Income tax at 22.5% on tax-adjusted net profit. The annual return is filed within four months of the fiscal year end.
Value-added tax
General rate 14%, with special rates for certain goods and services. Monthly return with the output-minus-input VAT balance due.
Salary and similar income tax
Withheld monthly from wages under progressive brackets and remitted to the Tax Authority. Annual and mandatory quarterly filings.
Withholding tax
1%–5% withholding on local supplier payments; application of double-tax treaties on outbound payments.
E-invoice and e-receipt
Both systems are run by the Tax Authority. Correct enrolment directly affects your ability to claim deductions and avoid tax reassessment.
Tax disputes
Tax-appeals committees, then a specialised tax court, ultimately to the Supreme Administrative Court. Strict timing determines appeal success.
VICommon red flags — avoid these
Mistakes we see recurrently — each costs many times more than avoiding it.
- 01Delaying social-insurance registration of a new hire beyond 7 days.
- 02Issuing invoices outside the e-invoicing system after its activation.
- 03Failing to update the commercial register after capital or partner changes.
- 04Carrying out a regulated activity before obtaining the sector licence.
- 05Terminating a worker without written notice or in breach of internal regulations.
- 06Processing personal data without registration or a data-protection officer.
- 07Exceeding the statutory foreign-labour quota.
- 08Delaying monthly social-insurance contributions.
VIIFrequently asked questions
Questions operations managers and owners actually ask.
When does internal-regulations approval become mandatory?
Approving internal regulations becomes mandatory when the workforce exceeds 15 workers. Below this, the Labour Law and employment contract suffice, but having regulations simplifies managing penalties and leaves.What are the main changes in the new Labour Law 14/2025?
Key changes include updated probation rules, fixed-term contract renewal, the new social-wage framework, remote-work regulation, and enhanced working-women rights. Existing contracts should be reviewed and updated where required.Must I register for VAT from day one of activity?
Registration is not mandatory until taxable sales exceed EGP 500,000 in a fiscal year. Voluntary registration may be useful for input-VAT recovery. Some activities (e.g. import) require registration from day one.What types of licences might I need to operate my activity?
It depends on activity: general commercial licence from the local authority, industrial licence from IDA, FRA licence for non-bank finance, CBE for banking services, or a specialised ministry (health, education, telecoms). We identify the real licences before operations start.Can I terminate a worker without cause?
Egyptian labour law requires a legitimate reason for employer-initiated termination. Unjustified termination exposes the company to full compensation. The safe route: documented serious grounds, or a mutually-agreed termination with a clear settlement.What is the foreign-worker cap at an establishment?
General rule: 10% of total workforce is the cap on foreign labour. Specific exceptions apply (for rare specialties, special economic zones, and certain regulated activities). The ratio is checked with each new work permit.When does personal-data processing fall under Law 151?
The law applies to anyone processing personal data of Egyptian residents, whether based inside or outside Egypt, as long as processing targets or affects individuals in Egypt. Obligations include registration, a data-protection officer, and breach notification within 72 hours.How is a tax dispute with the Tax Authority managed?
A dispute begins with an objection to an estimated or final assessment, referred to an internal committee, then an appeals committee, then the specialised tax court. Deadlines are short (often 30 days to appeal) and missing them forfeits the right. Documentary-file management from day one determines success.
Need a legal review of your operations?
Send a brief of activity, team size, and current obligations — and we reply within one business day with a review plan and compliance check.