Tourism businessesBuying a Licensed Tourism Company in Egypt (2026): the Licence Suspension and What to CheckThe Ministry of Tourism site shows new tourism company licences as suspended, so buyers turn to companies that already hold one. What…
Due diligence
Due Diligence in Egypt
and Contract Review Before You Buy
Due diligence in Egypt means checking a business's register entry, tax and social-insurance position, licences, lease and staff before you sign, not after. In Sharm El Sheikh it also means the approvals a share transfer needs. We cover the accounting and tax side from Office 314 and work alongside lawyers on the legal side.
- Chartered Accountant (محاسب قانوني)
- Office 314, Al Azizia Mall, Sharm El Sheikh
- Arabic, English, Italian, Russian
- Same-day replies, 09:00–23:00 daily
01What's included
What we check
Nine headings, each tested against the documents rather than the seller's word. Rules as of October 2026.
01Commercial Register extractLegal form, capital, owners, managers, activity and the renewal date. The entry is renewed every five years, and a late application within 90 days costs double the fee.Company forms in Egypt02Tax status certificate and returnsThe tax status certificate first, then the returns, assessments and any inspection or dispute for every year the Tax Authority can still reopen: five years, six for evasion.Tax inspections and disputes03VAT positionRegistration is compulsory at EGP 500,000 turnover. A café in a mall, a chain or an outlet charging a service fee owes 14% VAT even without a tourist licence.VAT registration and returns04Social insurance and health insuranceIs every employee registered, and do contributions match the payroll? Employer 18.75%, employee 11%, plus Universal Health Insurance in South Sinai at 4% and 1%.Payroll and social insurance05Licences, including MoTA and CDWSThe Law 8/2022 licence for hotels, tourist restaurants, diving and safari centres, the yearly manager licence, chamber certificates, CDWS cards and, for a tourism company, its Law 38/1977 licence.Licences and registrations
06Leases and usufructWho holds the premises, who may assign the lease, its term and renewal, and the approvals behind a usufruct in Sharm. Built-property tax falls on the owner or usufruct holder.
07Staff and work permitsContracts, payroll and foreign staff: permits under Labour Law 14/2025 and, for tourism employers, the Ministry of Tourism's own approval. Investment Law projects may employ foreigners up to 10% of the workforce, or 20% where qualified Egyptians are not available.Work permits08E-receipt and e-invoice complianceConsumer-facing taxpayers in the Sharm El Sheikh area have had to issue e-receipts since 1 November 2022. Costs without an e-invoice or e-receipt are not recognised, so we compare the e-records with the books.E-invoice and e-receipt setup09Sinai approvals for share transfersGAFI approves share transfers in Sinai companies, for an approval fee. In Sharm and Dahab, changes of shareholders in a non-Egyptian project also need Defence, Interior and General Intelligence approval plus GAFI or FRA approval.Company rules in Sharm and South Sinai02Process
How pre-purchase checks in Sharm El Sheikh run
Typical stages, not promises. The pace depends mostly on how quickly the seller shares documents.
- 01
Tell us what you are buying
The business, the address, the asking price and whether you are buying shares or assets. The address decides the regime: Decree 128/2022 in Sharm El Sheikh and Dahab, Law 14/2012 in El Tor and Saint Catherine.
- 02
Document request to the seller
A request list built for that business. A café needs fewer files than a hotel company with a dive centre attached.
- 03
Desk review
Every document checked against the others. Numbers that do not match are the findings that matter.
- 04
Questions to the seller
We put our questions to the seller and their accountant in Arabic and explain the answers to you.
- 05
Findings and price points
What is clean, what must be fixed before signing, and what belongs in the contract as a warranty or a price adjustment.
- 06
Contract and approvals
The lawyer drafts. We check the numbers, the tax clauses and, in Sinai, the order of the GAFI, FRA and security approvals.
Security approvals, documents issued abroad and a slow seller can all add time. We tell you where the file stands at each stage.
03Why us
Why clients in Sharm choose us
Due Diligence and Contract Review Before You Buy or Invest, handled by one chartered accountant from your first question to the final registration. Before you buy a business in Egypt, our contract review in Egypt protects you. Related guides: Buying a Licensed Tourism Company in Egypt (2026).
+100 businesses servedHotels, restaurants, dive centres, shops and investors in Sharm El Sheikh trust us with their files.
A chartered accountant on your fileYour file is prepared and followed by a Chartered Accountant (محاسب قانوني) and tax expert.
On the ground in SharmOffice 314, Al Azizia Mall, close to the authorities your file goes through. Open every day, 09:00–23:00.
Four languagesArabic, English, Italian and Russian, with the same facts in each.
FAQ
Questions about due diligence and contract review
What does due diligence on an Egyptian business cover?
It tests what the seller tells you against the documents: the Commercial Register extract, tax returns and assessments, social-insurance records, licences, leases, staff files and e-receipt records. For a business in Sharm El Sheikh or elsewhere in Sinai, it also covers the approvals a share transfer or property dealing needs, as of October 2026.
Can a foreigner buy an existing company in Sharm El Sheikh?
Yes, with conditions. Under Decree 128/2022, a non-Egyptian project in Sharm El Sheikh or Dahab must be an Egyptian joint-stock company, and changes of shareholders need Defence, Interior and General Intelligence approval plus GAFI or FRA approval. The decree sets no minimum Egyptian percentage, but land and buildings stay Egyptian-owned. Check the approvals before you pay.
Can I buy a licensed tourism company instead of applying for a licence?
Some buyers consider it, because on 10 October 2026 the Ministry of Tourism site showed the issue of new tourism company licences as temporarily suspended. Buying one means checking that the Law 38/1977 licence is valid, that chamber certificates are current and that the company carries no hidden tax or insurance debts. Talk to us first.
Do I need a lawyer as well as an accountant?
Usually, yes. We cover tax, VAT, e-receipts, books, payroll, social insurance, licences and the approvals file. Title, the validity of a usufruct or lease, litigation searches and drafting the sale contract belong to a lawyer, either one of the partner lawyers we work with or your own. We agree the split at the start.
How can I check an Egyptian company before paying a deposit?
Ask the seller for a current Commercial Register extract, the tax card, a tax status certificate, the latest returns and assessments, a social-insurance statement and every licence with its expiry date. Then have someone who reads Arabic check that they agree with each other. We do this from Sharm El Sheikh, usually starting on WhatsApp.
Related
Related services and sectors
Financial advisoryCash-flow plans for seasonal businesses, budgets and bank-ready plans.Learn moreFeasibility studiesThe numbers behind a purchase or a new project, prepared for a bank or an investor.Learn moreTourism companiesLicensing status, structures and tax for excursion and safari businesses.Learn moreHotels and resortsLaw 8/2022 licences, VAT, payroll and owner-operator structures in Sharm.Learn moreDive centresCDWS cards, MoT-licensed employers, staff ratios and tax for dive businesses.Learn moreCompanies in Sharm and South SinaiDecree 128/2022 and Law 14/2012, and what they mean for your ownership.Learn more
Related guides
Tourism businessesBuying a Licensed Tourism Company in Egypt (2026): the Licence Suspension and What to CheckThe Ministry of Tourism site shows new tourism company licences as suspended, so buyers turn to companies that already hold one. What…Free consultation
Tell us about your case. The first consultation is free
Send us a few lines on WhatsApp or call. During office hours (09:00–23:00, every day) we reply the same day, in Arabic, English, Italian or Russian.