Operating a Business

flag Libya Libya: Operating a Business

In this page: Setting Up a Company | The Active Population in Figures | Working Conditions | Cost of Labour | Social Partners

 

Setting Up a Company

Limited liability company
Number of partners: Minimum 3, maximum 25
Capital (max/min): Minimum LYD 5,000
Shareholders and liability: Liability is limited to the amount contributed.
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: Liability is limited to the amount contributed.
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 LYD 30,000. 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 LYD 50,000.
Shareholders and liability: Limited.
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 LYD 150,000.
Shareholders and liability: Liability is limited to the amount contributed.
Setting Up a Company Libya Middle East & North Africa
Procedures (number) 10.0 6.3
Time (days) 35.0 19.5

Source: Doing Business.

 
Business Setup Procedures
DCFA Libya, Libya Trade Laws.

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The Active Population in Figures

201820192020
Labour Force 2,380,6972,422,9442,389,259

Source: International Labour Organization, ILOSTAT database

 
201720182019
Total activity rate 52.72%52.79%52.80%
Men activity rate 68.67%68.79%68.83%
Women activity rate 36.45%36.47%36.46%

Source: International Labour Organization, ILOSTAT database

 

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Working Conditions

Working Contracts
Employment law is regulated by law number 15 of 1981.
Foreign employees cannot expect a work contract in Libya unless they have a work permit and a residence permit issued by the competent Libyan authorities. The contract is in the form of a written undertaking that must include:
- the duration of the undertaking,
- the rights and obligations of the employee,
- the number of hours worked daily and weekly,
- holidays,
- length of leave periods,
- the salary as well as overtime payments,
- accommodation,
- insurance.

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Cost of Labour

Minimum Wage
LYD 250 per month (source: ILO, 2011).
Average Wage
The average monthly gross earnings is LYD 190.

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Social Partners

Labour Regulation Bodies
The Revolutionary Command Council (RCC)

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Latest Update: May 2024