Libya Company Formation

Libya company formation is both difficult and expensive, due to the country's bureaucracy and complex regulatory environment. That said, the company is a major oil producer (a member of the Organisation of Petroleum Exporting Countries (OPEC)) and is slowly opening its doors to foreign investment. As a result, some international entrepreneurs are now looking seriously at Libya company formation. The following information will help you determine whether Libya company formation is the optimum solution to fulfill your business objectives:

Advantages of Libya Company Formation
1.	The Libyan government has stated its intentions to reform its economy and join the World Trade Organisation (WTO), both likely to encourage investors interested in Libya company formation.
2.	Libya is rich in natural and mineral resources, a possible basis for many potential industrial, agricultural and tourism projects.
3.	Libya's continued economic reforms are making it an attractive venue for foreign investment.
4.	The Foreign Investment law of 1997 opens up various sectors previously closed to the private sector and foreign investment along with certain exemptions from customs duties and tax.
5.	With Libya company formation, the minimum corporate tax is 20%.
6.	There is opportunity for 100% foreign equity ownership of companies licensed under the Foreign investment law.
7.	The minimum investment required to complete Libya company formation is US$4000.
8.	Libyan banks are increasingly open to supporting Libya company formation. Foreign investors can now borrow up to 50% of their investment capital from local Libyan banks.
9.	It is easy to open global corporate bank accounts to support Libya company formation. Healy Consultants works with internationally recognised banks such as HSBC, Standard Chartered and Citibank to provide corporate bank account services.
Disadvantages of Libya Company Formation
1.	Libya company formation is complex and time-consuming due to the country's heavy bureaucracy. Libya dropped from the 105th least corrupt country in the world to the 131st least corrupt, according to the 2007 Corruption Perceptions Index by Transparency International, a global measure of corruption amongst public officials and politicians.
2.	Under Libya company formation law, a company can have a maximum foreign shareholding of 65%. However, the board of directors may now be comprised of a foreign majority.
3.	All documentation related to Libya company formation is in Arabic. Investors planning Libya company formation should therefore factor the additional time and expense of translating documents into the overall engagement.
4.	The most lucrative markets in Libya - telecommunications, the financial sector, retail and wholesale operations - are closed to foreign investors planning Libya company formation. Libya is negatively ranked as the world's 154th freest economy in the Heritage Foundation’s 2008 Index of Economic Freedom, a measure of freedom enjoyed in business, trade, monetary, financial, investment and labour markets.
5.	Available qualified local workers in Libya must replace foreign investor's own technically qualified staff.
6.	Following Libya company formation, a Libyan company is required to submit its accounts to the Foreign Investment Board.
7.	Investors planning Libya company formation should note that Libyan business culture is heavily reliant on personal contacts.
8.	Following Libya company formation, businessmen find difficulty in obtaining visas for foreign staff, registering branch companies and declaring goods through customs.
Other Information
Refer to the following links to read more information on Libya company formation:

Contact Us
For more information on Libya company formation, e-mail email@healyconsultants.com or call us in Singapore at (+65) 6735 0120.
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