At a glance
Partners and capital
The Holding Company is another variant of the Lebanese Joint Stock Company and benefits from a very special tax treatment. The minimum number of partners and the capital requirement are the same as for joint stock companies, and the capital can be held in foreign currency.
The holding company can be fully owned and directed by foreigners, and the non-Lebanese chairman of a holding company is exempted from work permit requirements.
Permitted object
Its object is strictly limited to:
- Buying and subscribing to shares in Lebanese or foreign joint stock or limited liability companies.
- Managing those companies.
- Lending money to companies in which it holds a minimum of 20% of the shares, and/or guaranteeing such companies towards third parties. For this purpose the holding company may borrow from banks and issue bonds, provided the total value of issued bonds does not exceed five times its capital and reserves.
- Holding and leasing patents, concessions and trademarks.
- Acquiring movable or real estate assets necessary for the holding’s operations.
Taxation and requirements
The Lebanese holding company enjoys various important tax advantages: it is exempted from income tax on its profits and on the distribution of dividends. An auditor needs to be appointed and, as for all Lebanese companies, a lawyer has to be retained with yearly fees.
An auditor needs to be appointed and, as for all Lebanese companies, a lawyer has to be retained with yearly fees. See auditing and legal services.