Commercial companies in Lebanon
This comparative table shows the different types of commercial companies in Lebanon.
Unlimited Partnership | Limited Liability Company | Joint Stock Company | Holding Company | Offshore Company | |
Company Type | Association of Persons | Association of Funds | Association of Funds | Association of Funds (it is a special type of a Joint Stock company) | Association of Funds (it is a special type of a Joint Stock company) |
Minimum number of Partners or shareholders | 2 Partners | Between 3-20 Partners | 3 Shareholders | 3 Shareholders | 3 Shareholders |
Minimum Capital | There is no minimum capital | 5 000 000 LBP (The equivalent of 3334 USD) | 30 000 000 LBP (The equivalent of 20000 USD) | 30 000 000 LBP (The equivalent of 20000 USD) | 30 000 000 LBP (The equivalent of 20000 USD) |
Auditors |
No |
Optional: Partners may appoint an auditor by a decision of Partners representing at least half the capital. – It becomes mandatory if: *The number of Partners has exceeded 20 *Capital rises up to 30 million LBP *A partner or more representing 1/15 of the capital at least ask for the appointment of the auditor. |
Yes – One or more appointed by the company and an external Auditor appointed by the Commercial Court. |
Yes (one or more) – The company must appoint at least an Auditor who has to be a Lebanese citizen and has to be a resident of Lebanon; he is appointed for a period of 3 years. An external appointed by the Commercial Court. |
Yes (Mandatory) – The company must appoint at least an Auditor who has to be a Lebanese citizen and has to be a resident in Lebanon; he is appointed for a period of 3 years. – The company is exempt from the obligation of appointing an external auditor by the Commercial Court. |
Lawyer |
No |
Yes | Yes | Yes |
Yes |
Taxation | Tax rate of 15%
-Taxation on profits of industrial, commercial and non- commercial profession; but also on a part of partner’s profits (4 to 21%) – Annual tax: 550000 L.L |
– Tax on net profit: 15%
– Value Added Tax (VAT) 10% – Tax on income from movable capital: Profit from parts cession of Limited Liability Company 10% – Annual tax: 750 000 L.L |
– Tax on net profit: 15%
-Value -added tax (VAT) 10% – Tax on income from movable capital: *Dividends distribution (10%) *Fees and member’s fees for the board of directors (10%) *Interest paid or credited to creditors (10%) *Profit from sale of foreign stocks and bonds (10%) – Annual tax: 2 000 000 L.L |
– Exempt from taxes on income and on the distribution of dividends.
– Subjected to a fixes tax of 1 Million L.L (666 USD) and a reduction of 30% tax on wages of foreign employees. – Benefits, which derive from loans given to businesses operating in Lebanon, are subject to an income tax from movable capital, if the benefits from loans had been held for less than 3 years. – the earnings-enhancing from the cession of its contributions and interests in Lebanese companies, is subject to tax under Article 45 of the Tax Legislation (Law on Income Tax), if these contributions and the quotations had been held by the society less than 2 years. -The amounts charged by the holding company for its affiliated societies in Lebanon to cover the expenses of administration and services are subject to a tax rate of 5%. This only If such. expenses do not exceed the limits appointed by decree on proposal of the Minister of Finance. – The profits obtained by the Holding Company from the lease of land located in Lebanon, patents and other rights, are subject to a tax rate of 10%. – The Holding Company is subject to a tax rate of 6% of the total value of its capital, the reservation is added when the total does not exceed 50 Million L.L. The tax rate is reduced to 4% for amounts between 50 million and 80 million L.L, and 2% for amounts above L.L 80 million, provided that the total annual tax mentioned does not exceed 5 Million L.L. |
– Exempt from taxes on income.
-Subjected to a fixed tax of 1 Million LL (666 USD) and a reduction of 30% tax on wages of foreign employees. -Contracts signed by the company for its work implemented outside Lebanon are exempted from stamp duty (state tax) – Dividends Distributed by the company are exempted from income tax for its movable capital. |