Business Administration in Lebanon

Overview by Globlatrade.net:

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
Sponsorship societies: SCS (partnership limited by shares) and SCA (partnership limited by actions)
 
 
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.

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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.

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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%.

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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

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