Procedures for establishing a security and guarding company in Egypt

If you are considering entering Egypt's private security services market, the process is not like incorporating an ordinary commercial company. The sector is tightly regulated, subject to direct oversight by the Ministry of Interior, and a commercial registration and tax card alone are not sufficient. Below is a concise guide to what you actually need.

Quick Answer

Establishing a security and guarding company in Egypt involves two parallel tracks: incorporating a legal entity through the General Authority for Investment and Free Zones (GAFI) as an Egyptian joint-stock company with a minimum paid-up capital of EGP 500,000 under Law No. 86 of 1964 and its amendments, and obtaining an operating licence from the Public Security Sector of the Ministry of Interior. Operations may not commence until both licences have been issued, and all founders and board members must be Egyptian nationals exclusively.

Legal Requirements for Incorporation

The governing legislation is Law No. 86 of 1964 on the Regulation of Private Guarding Activities and its amendments, together with Ministerial Decision No. 2577 of 2010 issued by the Minister of Interior and its executive regulations.

Core requirements that are non-negotiable:

• Legal form: Egyptian joint-stock company. Formation as a limited liability company or a partnership is not permitted.
• Nationality: All founders, board members, and the responsible manager must be Egyptian nationals. Foreign shareholding is prohibited in this activity.
• Capital: Minimum EGP 500,000, fully paid up at incorporation and deposited with an accredited Egyptian bank.
• Responsible manager: Must be a retired officer of the Armed Forces or the Police holding a rank no lower than Lieutenant Colonel, discharged with a clean conduct record.
• Criminal record: A clean criminal-status certificate is required for all founders and employees, to be renewed periodically.

An additional requirement that many overlook: a detailed feasibility study and administrative premises that meet security and safety requirements must be submitted, including a licensed weapons safe if the activity covers armed guarding.

Bear in mind that a violation here is not a simple administrative fine — it may result in imprisonment under Article 8 of Law No. 86 of 1964.

Incorporation Steps in Practice

Phase One — Commercial Incorporation:

1. Reserve the trade name with the General Authority for Investment and Free Zones (GAFI). Reservation fees are approximately EGP 100–200.
2. Draft the articles of association and statutes through a lawyer enrolled before the Courts of Appeal.
3. Deposit the capital in an Egyptian bank and obtain the deposit certificate.
4. Submit the file to GAFI and obtain the ministerial incorporation decision.
5. Register in the Commercial Register and obtain the tax card and VAT registration number.
6. Register with the Social Insurance Authority and the Chamber of Commerce.

The total cost of this phase ranges between EGP 15,000 and EGP 25,000, inclusive of professional fees and government charges, and typically takes three to six weeks.

Phase Two — Operating Licence:

This is where the actual security track begins. The licence application is submitted to the General Directorate of Security and Guarding within the Public Security Sector of the Ministry of Interior, accompanied by:

• Original articles of association and commercial registration certificate.
• CV and military qualifications of the responsible manager.
• Certificate of retirement with clean conduct.
• Criminal-status certificates.
• Lease or ownership contract for the premises together with district authority approval.
• Technical study of the operating system and training plan.
• Third-party civil liability insurance.

Note: Submitting an incomplete file or inaccurate information in the licence application may place you on lists that bar you from operating in the future. The security vetting of founders can take between three and nine months, and sometimes longer.

The licence is issued for one year, renewable, and specifies the geographic scope and type of activity (facility guarding, cash-in-transit, personal protection, alarm systems, etc.).

Post-Licence Obligations

The licence is not the end of the road — it is the beginning. Once issued, you enter a framework of ongoing obligations:

Towards the Ministry of Interior:

• Notify the Directorate of the names of all employees before hiring them and conduct a security check on each individual.
• Train employees at Ministry-accredited centres before they commence work.
• Use a licensed uniform and identity cards issued by the Directorate.
• Immediately report any incident or occurrence involving employees during service.
• Maintain records of client contracts and make them available upon request.

Towards financial and labour authorities:

• Comply with the minimum wage and Labour Law No. 12 of 2003.
• Enrol all employees in social insurance from day one — not after a probationary period.
• File periodic tax returns with the Egyptian Tax Authority, including corporate income tax at 22.5% and value-added tax at 14%.

Licence renewal: Submit the renewal application at least 60 days before expiry. A delay in renewal means an immediate suspension of operations and may result in permanent revocation of the licence if the delay exceeds 90 days.

A common mistake made by many new entrants is assuming that the process of establishing a security and guarding company in Egypt ends with obtaining the licence. In reality, operational compliance is the true test, and any breach allows the licence to be withdrawn by administrative decision without the need for a court ruling.

Firearms and Armed Guarding

If your activity includes armed guarding — which distinguishes cash-in-transit companies and vital-facility guarding firms — you face an additional licensing layer.

Firearms licences for individual employees are obtained separately from the General Directorate of Arms and Ammunition under the Arms and Ammunition Law No. 394 of 1954 and its amendments. Weapons are owned by the company, registered in its name, stored in an accredited safe at the premises, and a daily issue-and-return logbook must be maintained.

Licence fees per firearm start at approximately EGP 1,500 annually and vary by type. Loss of a firearm or its use outside the scope of duty is not an administrative violation — it is a criminal offence, and liability extends personally to the responsible manager.

Is the complexity worth it? The profit margin in armed guarding is higher, but the legal and operational risks are compounded. Study the market thoroughly before seeking this extension to your licence.

For further information on specialist commercial licensing requirements, see our guides in the Business section.