Starting a business in Libya

Legal Forms of Companies

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.

Business Setup Procedures

Source: Doing Business - Latest available data.