Lebanon: Operating a Business

Joint Stock Company (SAL)

Number of partners: Minimum 3 partners / shareholders.
Capital (max/min): Minimum capital of LBP 30,000,000 with 25% to be paid at time of registration.
Shareholders and liability: Limited to the extent of the share capital

Private Limited Company (SARL)

Number of partners: Minimum 3 partners / shareholders, with a maximum of 20.
Capital (max/min): Minimum capital of LBP 5,000,000 wholly paid-up at time of registration.
Shareholders and liability: Limited to the extent of the share capital

General Partnership (SNC)

Number of partners: Minimum 2 partners.
Capital (max/min): No minimum capital.
Shareholders and liability: Unlimited liability

SCA or partnership limited by actions

Number of partners: Minimum 2 partners.
Capital (max/min): No minimum capital.
Shareholders and liability: Unlimited liability for general partners. Liability limited to their investments for limited partners.

SCS or partnership limited by shares

Number of partners: Minimum 2 partners.
Capital (max/min): No minimum capital.
Shareholders and liability: Unlimited liability for general partners. Liability limited to their investments for limited partners.

The holding company, subject to Decree Law no.45 of June, 24 1983 and its amendments.

Number of partners: Minimum 3 partners.
Capital (max/min): Minimum capital of LBP 30,000,000.
Shareholders and liability: Limited to the extent of the share capital

The offshore company subject to Decree Law no.46 of June, 24 1983

Number of partners: Minimum 3 partners.
Capital (max/min): Minimum capital of LBP 30,000,000.
Shareholders and liability: Limited to the extent of the share capital

Business Setup Procedures

The Competent Organisation

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.

For Further Information

Consult Doing Business Website, to know about procedures to start a Business in Lebanon.

Financial Information Directories

Dun & Bradstreet - Worldwide directory with financial information on businesses

Kompass - Lebanese business directory

Recovery Procedures

Principle

For more information, click here.

Minimum Debt-to-Capital Ratio Triggering Liquidation

For more information, click here.

Bankruptcy Laws

For more information, click here.

Reorganization and Rehabilitation Laws

For more information, click here.

Opening Hours

 

• Legal Weekly Duration

48 hours a week.

• Maximum Duration

48 hours a week.

• Night Hours

No specific payment (women can work at night in mechanical or manual engineering companies).

Working Rest Day

Minimum of 36h continuous (the rest day depends on the company).

Paid Annual Vacation

15 days (after one year in the same company).

Retirement Age

64 for men and women.

Child Labour and Minimum Age For Employment

No work before 13. Children have to take a medical examination before they can work. Children under 15 cannot work in hard industries or industries that could harm their health.

Informal Labour Market

34.1%

Pay

Minimum Wage

According to the government data, the minimum wage is LPB 2,000,000 per month in 2022.

Average Wage

The average monthly earnings of employees at their main job were about LBP 2,284,100 in January 2022 (ILO and CAS).

Other Forms of Pay

• Pay For Overtime

Increased to 50%.

• Pay For Rest Days Worked

There is no fixed rest day in Lebanon, so workers are payed the same way.

• Pay For Night Hours

Night hours are not increased.

• Pay For Overtime at Night

Increased to 50%.

Social Security Costs

The Areas Covered

- Child benefit;
- Sick and maternity leaf;
- Pension allowance.

Contributions

Contributions Paid By the Employer:

• Family allowances: 6% (on a maximum of LBP 1.5 million per month)
• Sickness and maternity: 8% (on a maximum of LBP 2.5 million per month)
• Compensation pension: 8.5% (no ceiling applies)

Contributions Paid By the Employee: Medical scheme 3% (on a maximum of LBP 2.5 million per month).

Competent Organization

CNSS

Recruitment

Method of Recruitment

Recruitment by agency or by contact. Send a CV and a motivating letter followed by an interview.

Recruitment Agencies

Careers LB
Expertise Recruitment

Recruitment Websites

Learn 4 good (en anglais)
Hire Land

The Contract

Dispute Settlement

Social Partners

Social Dialogue and Involvement of Social Partners

The main union in Lebanon is the CGTL (General Confederation of Lebanese Workers)

Unionisation Rate

56%

Labour Unions

General Confederation of Lebanese Workers

Regulation Bodies

Lebanese Ministry of Labor