Lebanon

Operating a Business in Lebanon

Setting up a company | Working conditions | Cost of labor | Social partners

Setting up a company

Legal business entities

Types of companies and capital (max/min)	Number of partners/shareholders and liability	Registration fees
Public Limited Company Minimum capital of LBP 30,000,000	Minimum 3 partners. Partners' liability is limited to the amount contributed.	The fixed cost of registration is LBP 2,400,000 or 1,600 USD.
Private Limited Company Minimum capital of LBP 5,000,000	Minimum 3 partners. Partners' liability is limited to the amount contributed. They are personally and severally liable for the Company and for third parties in case of infringement of the law or regulations and mismanagement.	The fixed cost of registration is LBP 1,400,000.
General Partnership No minimum capital.	Minimum 2 partners. Partners are jointly and severally liable for debts on their assets.	The fixed cost of registration is LBP 1,250,000
2 kinds of Sponsorship societies: The SCS is a partnership limited by shares subject to the rules of formation and dissolution of partnerships. The SCA is a partnership limited by actions subject to legal rules relating to limited Lebanese companies. Minimum capital of LBP 30,000,000.	Minimum 3 partners. Liability of sponsored is illimited. Sponsors' one is limited to the amount contributed.	The fixed cost of registration is LBP 1,250,000.
The holding company, subject to Decree Law no.45 of June, 24 1983 and its amendments. Minimum capital of LBP 30,000,000.	Minimum 3 partners. Partners' liability is limited to the amount contributed.	LBP 2,500,000
The offshore company subject to Decree Law no.46 of June, 24 1983 Minimum capital of LBP 30,000,000.	Minimum 3 partners. Partners' liability is limited to the amount contributed.	LBP 2,500,000

Business setup procedures: A company can be created within a week, because the incorporation formalities are very simplified ( incorporation and registration with the Trade Register). It is the Investment Development Authority which issues all the necessary authorizations. It has a one stop shop which makes the formalities easier. The articles of a public limited company and any further changes must be lodged and registered with a notary in the place where the headquarters of the company is located.
The competent organization: The Ministry of the Economy and Trade issues the necessary authorizations but concretely, an investor who wishes to form a company in Lebanon has only one contact, the Investment Development Authority.

Working conditions

Legal weekly duration: 48 hours a week.
Retirement age: 64 for men and women.
Working contracts: Employment contracts are regulated by law. Individual negotiations complement it. Any company with more than 15 employees must send a copy of its rules and regulations to the Ministry of Labor. There are fixed-term contracts, open-ended contracts and internship contracts governed by the Lebanese legislation set up in 1946 and its subsequent amendments.

Cost of labor

Minimum wage: 500 000 Lebanese pounds (USD 333) per month.
Average wage: Average monthly gross earnings is USD 600 per month.
Social contributions: Social security contributions paid by employers: Social contributions paid by employer:
Family allowances: 6%
Sickness and maternity: 7%
Compensation pension: 8.5%
Social security contributions paid by employees: Illness and maternity 2%.

Social partners

Social dialogue and involvement of social partners: The main union in Lebanon is the CGTL (General Confederation of Lebanese Workers)
Unions: Website of the General Confederation of Lebanese Workers (only in Arabic).
Unionization rate: 56%
Labor regulation bodies: Lebanese Ministry of Labor