This comparative table shows the different types of commercial companies in Lebanon.
| Criteria | Unlimited Partnership | Limited Liability Company (SARL) | Joint Stock Company (SAL) | Holding Company | Offshore Company |
|---|---|---|---|---|---|
| Company Type | Association of Persons | Association of Funds | Association of Funds | Association of Funds. It is a special type of a Joint Stock Company. | Association of Funds. It is a special type of a Joint Stock Company. |
| Minimum number of Partners or Shareholders | 2 Partners | One partner or more up till 20 partners. They can all be foreigners. | 3 Shareholders. At least 2/3 of shareholders shall be Lebanese. | 3 Shareholders. At least 2/3 of shareholders shall be Lebanese. | One shareholder or more |
| Minimum Capital | There is no minimum capital | 5,000,000 LBP | 30,000,000 LBP | 30,000,000 LBP | 30,000,000 LBP |
| Auditors | No |
Optional: Partners may appoint an auditor by a decision of partners representing at least half the capital.
It becomes mandatory if:
N.B: If the company has one single partner, appointing an auditor becomes mandatory when the capital rises up to 30 million LBP. |
Yes.
The company must appoint at least one auditor who must be a Lebanese citizen and resident of Lebanon. The auditor is appointed for a period of one year. The company also has the option of appointing an external auditor by the Commercial Court. |
Yes, one or more.
The company must appoint at least one auditor who must be a Lebanese citizen and resident of Lebanon. The auditor is appointed for a period of one year. The company also has the option of appointing an external auditor by the Commercial Court. |
Yes, mandatory.
The company must appoint at least one auditor who must be a Lebanese citizen and resident in Lebanon. The auditor is appointed for a period of one year. The company is exempt from the obligation of appointing an external auditor by the Commercial Court. |
| Lawyer | No | Yes | Yes | Yes | Yes |
| Taxation |
Tax rate of 15%.
Taxation applies on profits of industrial, commercial, and non-commercial professions, and also on part of the partner’s profits ranging from 4% to 21%. |
Tax on net profit: 17%
Value Added Tax (VAT): 10% Tax on income from movable capital: profit from parts cession of a Limited Liability Company: 10% |
Tax on net profit: 17%
Value Added Tax (VAT): 10% Tax on income from movable capital:
|
Exempt from taxes on income and on the distribution of dividends.
Subject to a fixed tax of 1 million LL, equivalent to 666 USD, and a reduction of 30% tax on wages of foreign employees. Benefits derived from loans given to businesses operating in Lebanon are subject to income tax from movable capital if the benefits from loans were held for less than 3 years. Earnings from the cession of contributions and interests in Lebanese companies are subject to tax under Article 45 of the Tax Legislation, Law on Income Tax, if these contributions and quotations were held by the company for less than 2 years. Amounts charged by the holding company to affiliated companies in Lebanon to cover administration and service expenses are subject to a tax rate of 5%, provided such expenses do not exceed the limits appointed by decree on proposal of the Minister of Finance. Profits obtained by the Holding Company from the lease of land located in Lebanon, patents, and other rights are subject to a tax rate of 10%. The Holding Company is subject to:
|
Subject to a fixed tax of 1 million LL, equivalent to 666 USD, and a reduction of 30% tax on wages of foreign employees.
Contracts signed by the company for work implemented outside Lebanon are exempt from stamp duty. Dividends distributed by the company are exempt from income tax on movable capital. |
