To create a company in the field of financial technology, you must first know the rules and laws that you have to adhere to and follow, as this field is developing very quickly, and for this, it is necessary to have laws that everyone involved in it complies with, and following the laws during the establishment of financial technology companies aims to conduct the process transparently and create a place for everyone in the field of competition.

The Financial Regulatory Authority (FRA) Issued Decree No. 268 of 2023 Set Out The Rules and Procedures for Establishing and Licensing Startups in The Field of Fintech to Engage in Non-bank Financing Activities:

1- The company should take the form of an Egyptian joint stock company.

2- The company’s activity should be limited to one or more of the activities: –

• Real Estate Finance Activity.
• Financing activity for SME’s.
• Microenterprise financing activity.
• Financing leasing activity.
• Discounting activity.
• Consumer finance activity.

3- The Company capital of the exporting and paid-up company shall not be less than 15 million Egyptian pounds per activity If there is a desire to practice more than one of the activities, the company’s capital must be increased according to the activities required to be practiced, considering the rules for combining activities issued by FRA.

4- The company shall prepare a technical and economic study of the company.

5- The proportion owned by technology professionals, whether individuals or legal persons, shall not be less than 25% of the company’s capital, with the undertaking of the founders not to adjust the ownership structure, which would result in this percentage falling below the minimum required.

6- The company Managing Director shall have suitable high qualifications and shall meet the requirements of experience required for each activity and pass the tests determined by the Authority.

7- The licensing period of the fintech startup that wishes to engage in any non-bank financing activities is only two years until it completes the final licensing requirements and increases the capital of the exporting and paid company under the provisions of the decisions governing each activity provided that the ownership rights are not less than the minimum capital of the company.

8- The license granted to the companies shall be canceled if they do not adjust their situation under the provisions of the previous paragraph, and the decision issued to cancel the license specifies the procedures that the company must take to transfer or liquidate its activity. Should you have any inquiries or require more information, please feel free to reach out

At the end of the article, you should know that the creation of such companies in the field of money technology is a rising step towards innovation and creativity, but it requires maintaining all the rules and laws in a big way so that the process runs in an adult system, and you have to be always ready to face all the challenges that you may face as an entrepreneur and always follow the law.

Looking to set up your FinTech startup? Consult with our experts of  Corporate and Commercial Law to ensure a solid foundation and full compliance.