Success tips when doing business in Libya
- Your joint venture partner or Libya shareholder must not merely be a nominee for the sake of meeting the rules of foreign company incorporation. You should choose a partner that actually brings a lot to the table, including local knowledge your business would need in Libya;
- To optimize the success of your new business venture in Libya, Healy Consultants recommends your firm i) complete a feasibility study ii) prepare a detailed business plan iii) communicate with the Libya Chamber of Commerce iv) speak to your local embassy in Libya and v) communicate with Healy Consultants Clients who successfully launched their business in Libya;
- Foreign companies should be aware i) Libya statistics and market data are usually imprecise ii) transactions tend to take longer than expected iii) more frequent and longer market visits are required, at least initially iv) complex business procedures are common;
- An essential factor in starting a business in Libya is to thoroughly research the business sector you are planning to invest in. Healy Consultants recommends our Client prepare a detailed business plan including an extensive market study and evaluation of competitors.
Frequently asked questions
How long does it take to incorporate a Libyan company?Healy Consultants can legally complete Libya company registration within two months.
How many directors are required for a Libyan company?A Libyan company requires one director.
How many shareholders are required for a Libyan company?A Libyan company requires a minimum of two shareholders.
Are there any restrictions on the ownership of a Libya Company?A Libyan citizen must hold a majority (ie 51% minimum) share in a Libyan limited liability company. 100% foreign ownership is permitted for certain industry sectors but can also require high capital requirements.
What are the minimum capital requirements for a Libyan company?The minimum investment required to complete Libya company formation can be very high. For a foreign company the capital requirements vary and are determined by government officials.
Are there any restrictions on the business activities of a Libyan company?The telecommunications, the financial sector, retail, and wholesale operations are closed to foreign investors.
Is a Libyan company subject to corporate tax?The corporate tax rate in Libya ranges from 15-40%. There is also a tax jihad of 4% that applies to annual taxable income.