Limited Liability Company in Lebanon

At a glance

Overview

A Limited Liability Company, also known as an LLC, is governed by Decree-Law No. 35 of August 5, 1967 and is commonly referred to in Lebanon as an S.A.R.L (the French equivalent of L.L.C).

Partners and capital

An S.A.R.L can be founded by a single partner and can have up to twenty partners. It can be fully owned by foreigners. The minimum capital is set at five million Lebanese Pounds; contributions may be in kind or in cash.

Since the company is of limited liability, the partners are only liable to the amount of their contribution or parts in the company. Partners in an LLC are not considered to be merchants, and hence are not subject to the provisions applicable to merchants, including the provisions of the Lebanese Code of Commerce.

Management

Management of an LLC is given to one or more managers. The manager can be a partner. The company’s denomination is always followed by the abbreviation “LLC”.

Taxation and requirements

Limited Liability Companies are subject to a 17% tax on corporate profit. There are no restrictions on foreign participation in limited liability companies, except for certain sectors and activities. The company must appoint a lawyer with yearly retainer fees.