Egypt: Rules For Granting Licenses To Sports Services Companies

Last Updated: 11 October 2019
Most Read Contributor in Egypt, October 2019

Prepared by/ Dahlia Hakim

Sports is not just an exercise for physical fitness, health and disease prevention, or for the purpose of watching for recreation and enjoyment of its arts, but it becomes a tool for attracting investment, making benefit from the same and in achieving economic development. That's why multinational corporations and large investors invest their monies in establishing sports clubs, especially in football.

Law No. (77) of 1975 concerning the civil associations has been issued and after more than forty years have passed since the promulgation of this law its philosophy and objectives become unsuitable for the conditions of the Egyptian sport. The Egyptian Constitution of 2014 states in article (84) that sport is a right for all, and that state institutions must discover the talented athletes and take the necessary procedures to encourage the exercise of sport.

For implementation purposes of the provisions of the Constitution, the Olympic Charter and international standards and to follow up on the recent developments in the field of sports, the Sports Law No. 71 of 2017 was issued, including the following:

1- Ensuring the right of the sports bodies in all rights related to connecting the public with the sporting event and all the rights of transferring the image and prohibiting the use or exploitation of the names, badges or signs registered for those bodies, except after agreement with the concerned sports body.

2- Banning the licensing of the establishment or operation of companies operating in the field of sports services such as health club "GYM", fitness centers and sports academies, except after fulfilling the conditions and completing the specifications determined by the competent minister, subject to the supervision of the central administrative body to ensure compliance with the prescribed conditions regarding its security, safety and services.

3- Settlement of sports' disputes arising from the application of the provisions of the law in which one of its parties is a person or body or entity subject to the provisions of this law and this is done through the Center for Settlement and Arbitration Sports.

4- Regulating the investment in the sports field and authorizing the competent minister to set the rules, conditions and procedures necessary to facilitate the investment in this field, taking into consideration the provisions of the laws governing companies and the capital market, guarantees and incentives for investment in Egypt.

5- Imposing the criminal penalties deterrent to commit offenses related to sports activity.

Accordingly, the sports and youth minister issued decree no. 1124 of 2017 approving the regulations set for granting the licenses for the sports services companies amended by virtue of decree No.125 of 2018 regulating the business relationship between the sports' companies and the sports ministry, as follows:

First: Scope of sports' services

  • Establishing private clubs
  • Establishing and managing the sports' courts or the covered lounges or swimming pools.
  • Establishing health clubs ("gyms") or fitness centers.
  • Establishing academies (sports or military sports).
  • Sports marketing.
  • Managing and operating the sports clubs.
  • Managing and operating the sports games.

It should be noted that the competent minister can add any other services related to sports.

Second: Conditions of granting licenses to sports services companies

1- The applicant company shall take the form of a joint stock company, provided that its issued capital shall not be less than EGP 250,000 if the license is for one field of sports service, and one million pounds if the license is more than one field and EGP 10 million if the license to establish a one private club or one branch for your club or a branch for the sports body.

In all cases the issued capital of the company shall not be less than one third of the project's investment costs.

2- The company shall pay the license fee or its renewal fess to the competent administrative authority in a value not less than 0.75% of the total issued capital.

3- The company's bylaws or its articles of association shall include one of the above mentioned sports services.

4- The company's activities shall not be subject to the control of the Tourism ministry.

5- The company shall have an independent headquarter valid for the field or fields in which the license is issued, and the tenure period shall not be less than the license period.

6- The validity of the places and facilities designated for practicing the licensed field.

Third: Method of payment of the license fee

- Payment shall be made in the account of the National Sports Council.

- Payment is made in cash at the National Sports Council account in Alexandria Bank.

Fourth: The annexes to the license application

The license application is submitted to the competent administrative authority (the Sports Services Office of the Ministry of Youth and Sports)

- General Documents

- Attached copies of the company contract and its articles of association indicating its activity.

- A recent official extract from the company's commercial register.

- A copy of the bylaws including the company contract and its articles of association.

- A financial statement approved by the General Assembly and the Company's auditor for the companies that are established after the issuance of these regulations or the financial statements of the company for the last year approved by the General Assembly and the company's auditor in case of reconciliation.

- A detailed statement of the investment costs of the project approved by the company's auditor indicating the sources of financing.

- A copy of the title deed or possession of the company's headquarters, the partners' qualifications, place of residence and nationality.

- A statement on behalf of the manager in charge of the licensed field, his qualification, his ID number and a print with his insurance number.

- Criminal statement record of the founders and members of the board of directors of the sports body in case the company is a subsidiary of it.

- Payment of the license fee.

- Special Documents

- For companies that aim to engage in sports activities such as setting up private clubs, academies, health clubs, fitness centers, etc. - in addition to the above - the following documents are required:

- A sketch showing the company's facilities and specifications.

- An ownership or possession deed of places engaged in sports activity.

- A description of the types of machines and their numbers and validity for use.

- Private club internal rules (for private clubs).

- A maintenance contract of facilities and stadiums or provide evidence that the company has specialized labor team for this purpose.

It is worth to note that Ministry of Youth and Sports shall decide on the application for the license within 60 days from the date of submission of the application. All documents and papers shall be completed and the response to the application shall be by an official letter received at the address mentioned on the application. Passing 60 days without a response shall be considered as acceptance of the request.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on Mondaq.com.

Click to Login as an existing user or Register so you can print this article.

 
Some comments from our readers…
“The articles are extremely timely and highly applicable”
“I often find critical information not available elsewhere”
“As in-house counsel, Mondaq’s service is of great value”

Related Topics
 
Related Articles
 
Up-coming Events Search
Tools
Print
Font Size:
Translation
Channels
Mondaq on Twitter
 
Mondaq Free Registration
Gain access to Mondaq global archive of over 375,000 articles covering 200 countries with a personalised News Alert and automatic login on this device.
Mondaq News Alert (some suggested topics and region)
Select Topics
Registration (please scroll down to set your data preferences)

Mondaq Ltd requires you to register and provide information that personally identifies you, including your content preferences, for three primary purposes (full details of Mondaq’s use of your personal data can be found in our Privacy and Cookies Notice):

  • To allow you to personalize the Mondaq websites you are visiting to show content ("Content") relevant to your interests.
  • To enable features such as password reminder, news alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our content providers ("Contributors") who contribute Content for free for your use.

Mondaq hopes that our registered users will support us in maintaining our free to view business model by consenting to our use of your personal data as described below.

Mondaq has a "free to view" business model. Our services are paid for by Contributors in exchange for Mondaq providing them with access to information about who accesses their content. Once personal data is transferred to our Contributors they become a data controller of this personal data. They use it to measure the response that their articles are receiving, as a form of market research. They may also use it to provide Mondaq users with information about their products and services.

Details of each Contributor to which your personal data will be transferred is clearly stated within the Content that you access. For full details of how this Contributor will use your personal data, you should review the Contributor’s own Privacy Notice.

Please indicate your preference below:

Yes, I am happy to support Mondaq in maintaining its free to view business model by agreeing to allow Mondaq to share my personal data with Contributors whose Content I access
No, I do not want Mondaq to share my personal data with Contributors

Also please let us know whether you are happy to receive communications promoting products and services offered by Mondaq:

Yes, I am happy to received promotional communications from Mondaq
No, please do not send me promotional communications from Mondaq
Terms & Conditions

Mondaq.com (the Website) is owned and managed by Mondaq Ltd (Mondaq). Mondaq grants you a non-exclusive, revocable licence to access the Website and associated services, such as the Mondaq News Alerts (Services), subject to and in consideration of your compliance with the following terms and conditions of use (Terms). Your use of the Website and/or Services constitutes your agreement to the Terms. Mondaq may terminate your use of the Website and Services if you are in breach of these Terms or if Mondaq decides to terminate the licence granted hereunder for any reason whatsoever.

Use of www.mondaq.com

To Use Mondaq.com you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located.

You may use the Website as an unregistered user, however, you are required to register as a user if you wish to read the full text of the Content or to receive the Services.

You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these Terms or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.

Disclaimer

The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use of the Content or performance of Mondaq’s Services.

General

Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

By clicking Register you state you have read and agree to our Terms and Conditions