Libya flag Libya: Operating a Business in Libya

Starting a business in Libya

Legal Forms of Companies

Joint stock company.
Number of partners: Minimum number of shareholders according to 4 thresholds (13 shareholders; 25 shareholders; 50 shareholders; 100 shareholders).
Capital (max/min): - 1st threshold: maximum capital of 1 million LYD,
- 2nd threshold: capital of between 1 and 2 million LYD,
- 3rd threshold: capital of between 2 and 4 million LYD,
- 4th threshold: capital above 4 million LYD.
Shareholders and liability: Each member remains financially responsible for the acts of the company.
The foreign company
Number of partners: Minimum of 2 partners. One of them must be of Libyan nationality.
Capital (max/min): The capital must be between a minimum of 5 000 LYD and a maximum of 30 000 LYD. The Libyan partner must hold at least 51% of the capital.
Shareholders and liability: Liability is limited to the amount contributed.
The office of representation
Number of partners: A minimum of 2 partners, one of whom must be of Libyan nationality.
Capital (max/min): The office of representation must open a non-resident bank account with funds supplied by the parent company. The deposit must be at least equal to 50 000 LYD.
The foreign subsidiary
Number of partners: A minimum of 2 partners, one of whom must be of Libyan nationality.
Capital (max/min): The subsidiary must set aside a sum reserved for setup and operating that must be at least 150 000 LYD.
Shareholders and liability: Liability is limited to the amount contributed.
The Competent Organisation
Decree n°8 of 9 January 2005 modifying some provisions of law 65/1970 stipulates that depositing a request with the Bureau of the investment Register and Commercial Register is compulsory for any foreign company wishing to open an office of representation in Libya. In the request the following must be mentioned: the name, profession and postal address of the representative responsible for filing the request.
 
Setting Up a Company Libya Middle East & North Africa
Procedures (number) 10.0 6.3
Time (days) 35.0 19.5

Source: Doing Business, 2016

 
Business Setup Procedures
DCFA Libya, Libya Trade Laws.

Find out more about Operating a Business in Libya on GlobalTrade.net, the Directory for International Trade Service Providers.

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Latest Update: April 2022

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