Operating a Business

flag Lebanon Lebanon: Operating a Business

In this page: Legal Forms of Companies | The Active Population in Figures | Working Conditions | The Cost of Labour | Management of Human Resources

 

Legal Forms of Companies

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 Directories

Financial Information Directories
Dun & Bradstreet - Worldwide directory with financial information on businesses
Kompass - Lebanese business directory

To go further, check out our service Business Directories.


 

Business Setup Procedures

Setting Up a Company Lebanon Middle East & North Africa
Procedures (number) 8.00 6.28
Time (days) 15.00 19.51

Source: Doing Business - Latest available data.

 
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.
Investment Development Authority
 

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.

Return to top

The Active Population in Figures

201820192020
Labour Force 2,387,6812,423,7122,317,840

Source: International Labour Organization, ILOSTAT database

 
201720182019
Total activity rate 50.31%50.60%51.07%
Men activity rate 75.53%75.80%76.34%
Women activity rate 25.04%25.31%25.63%

Source: International Labour Organization, ILOSTAT database

 

Return to top

Working Conditions

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%

Return to top

The Cost of Labour

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

Return to top

Management of Human Resources

 

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

Type of Contract
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.

Breach of Contracts

  • Retirement
Possibility to take an early retirement.
  • Dismissals
See various dismissal conditions on Ilo.org
  • Other Possible Methods
See end of contract Terms and Conditions on Ilo.org
Labour Laws
Employment Law (French)
Consult Doing Business Website, to obtain a summary of the labor regulations that apply to local entreprises.
 

Dispute Settlement

 

Conciliation Process

Cases of Dispute
Judges conciliation board:
- Disputes resulting from setting the minimum wage;
- Disputes resulting from accidents at work;
- Disputes resulting from dismissals, breach of contract, fines and, generally speaking, disputes between employers and employees resulting from the application of prescriptions of the present law.
For more information, consult the Labor code on the Ilo.org
  • Legal Framework
Employment Act on Ilo.org
  • Procedure
Creation of an arbritation court which will take a decision.
For more information, consult the Employment Act on Ilo.org.
 

Judicial Structures

  • Legal Framework
For more information, consult the Labor code on Ilo.org website.
  • Competent Legal Body
The Mohafazat is competent.
For more information, consult the Labor code on Ilo.org website.
 

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%
Unions
General Confederation of Lebanese Workers
Regulation Bodies
Lebanese Ministry of Labor
 
 

Return to top

Any Comment About This Content? Report It to Us.

 

© Export Entreprises SA, All Rights Reserved.
Latest Update: November 2022