Planning for a business in Libya
It has been proven that the time is ripe for business investment in Libya as more and more foreign businesses enter the country and realize the fantastic economic opportunities that await them. Libya has been working on their business investment laws since the revolution, but things are not yet set in stone.
There are a couple of options for foreigners who want to establish a presence in Libya. Firstly, the easiest way USED TO BE to register a company is in the capacity of a representative of a foreign company. The paperwork for this option is minimal as is the investment of a minimum of 50,000 Libyan Dinar. However, as of the new investment law, the price has risen to 150,000 Libyan Dinar. You are able to legally represent your company with regards to marketing but you are not permitted to make money in Libya. You will also not have to pay taxes in the country.
For investors wishing to establish a mixed company which is only foreign owned in part, the Mushtaraka Company is a good option. The foreign company is allowed to own up to 65% of the business and the minimum investment required is 1 Million Libyan Dinar. The company will be fully licensed under Libyan law and liable for taxes in the country. There is also a new line in the law for a Limited Company that requires only 50,000 Libyan Dinar capital investment. The only problem is that these new businesses must fall under 10 different business sectors. You may want to contact a lawyer to see your options.
The final option is an investment law company which is great for totally foreign owned businesses who will fall under investment laws. The minimum investment needed is 5 Million Libyan Dinar and investment is applicable in certain Libyan sectors.
For those of you looking for a simpler way to develop a presence in Libya, you might consider starting a Libyan Company. The only issue with this method is that you MUST find a trust worthy partner who will register the company and hire you as the president of the board.