Joint Stock Company / Limited Liability Company (SAL/SARL)
ุดุฑูุฉ ู ุบููุฉ / ุดุฑูุฉ ู ุญุฏูุฏุฉ ุงูู ุณุคูููุฉ
Company formation in Lebanon
The SAL/SARL is best suited for: Lebanese diaspora maintaining legal presence in Lebanon, Holding structures for Lebanese family assets, Investors with specific pre-existing Lebanon exposure, Companies requiring a registered Lebanese entity for contractual reasons. Companies in Lebanon are subject to 17% corporate income tax on profits. The offshore company regime (1983 Offshore Law) offers 0% tax on foreign-source income for qualifying holding and service companies. VAT applies at 11% on most goods and services. Withholding tax of 10% applies on dividend distributions. A 7.5% tax applies on interest income. The tax system remains functional on paper but enforcement and collection have been disrupted by the ongoing economic crisis.
- Lebanese diaspora maintaining legal presence in Lebanon
- Holding structures for Lebanese family assets
- Investors with specific pre-existing Lebanon exposure
- Companies requiring a registered Lebanese entity for contractual reasons
Key Facts
Step-by-Step Formation Process
Choose company type and reserve name
Decide between SAL (joint stock, minimum 3 shareholders) or SARL (limited liability, 1โ20 partners). Reserve the company name with the Commercial Register at the Beirut Court of First Instance.
Draft and notarise the Articles of Association
Prepare the Articles of Association (Statuts) specifying shareholders, capital, management, and business activities. The document must be notarised by a Lebanese notary public.
Deposit minimum share capital
Deposit the required minimum capital into a bank account in Lebanon. Given the banking crisis, this step may require coordination with a functioning bank branch. The bank issues a capital deposit certificate.
Register with the Commercial Register
File the notarised Articles of Association, capital deposit certificate, and shareholder identification documents with the Commercial Register. Pay the registration fees.
Obtain tax registration and operational permits
Register with the Ministry of Finance for corporate income tax and VAT. Obtain any sector-specific permits from the relevant ministry. Register with the National Social Security Fund (NSSF) if hiring employees.
Required Documents
- Passport copies of all shareholders and directors
- Proof of residential address for each shareholder
- Notarised Articles of Association (Arabic or French)
- Capital deposit certificate from a Lebanese bank
- Registered office lease agreement in Lebanon
- Power of Attorney if applying through a representative (notarised and legalised)
- Criminal record clearance for directors
Cost Overview
Tax Treatment
Companies in Lebanon are subject to 17% corporate income tax on profits. The offshore company regime (1983 Offshore Law) offers 0% tax on foreign-source income for qualifying holding and service companies. VAT applies at 11% on most goods and services. Withholding tax of 10% applies on dividend distributions. A 7.5% tax applies on interest income. The tax system remains functional on paper but enforcement and collection have been disrupted by the ongoing economic crisis.
Pros & Cons
- 100% foreign ownership permitted in most sectors without a local partner requirement
- Well-established French-influenced commercial legal framework with decades of precedent
- Large educated diaspora network provides potential business connections worldwide
- Offshore company option under the 1983 law offers 0% tax on foreign-source income
- Bilingual Arabic-French business environment with widespread English proficiency
- Banking system has effectively collapsed since 2019 โ moving money into or out of Lebanon is extremely difficult
- Lebanese Pound has lost over 95% of its value, creating severe currency risk
- Political paralysis and institutional dysfunction create regulatory uncertainty
- Infrastructure degradation (electricity, internet, water) increases operating costs
- Very high perceived country risk deters international counterparties and banking partners
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Get StartedThis content is educational and does not constitute legal or tax advice. Always consult a qualified professional for your specific situation. Data last verified March 2026.