Lebanon: Operating a Business

Legal Forms of Companies

Types of Companies and Capital (Max/Min)	Number of Partners/Shareholders and Liability
Joint Stock Company Minimum capital of LBP 30,000,000	Minimum 3 partners. Limited to the extent of the share capital
Public Limited Company Minimum capital of LBP 30,000,000	Minimum 3 partners. Limited to the extent of the share capital
Private Limited Company Minimum capital of LBP 5,000,000	Minimum 3 partners. Maximum: 20 Limited to the extent of the share capital
General Partnership No minimum capital.	Minimum 2 partners. Unlimited liability
Sponsorship societies: SCS (partnership limited by shares) and SCA (partnership limited by actions) No minimum capital.	Minimum 2 partners. Unlimited liability
The holding company, subject to Decree Law no.45 of June, 24 1983 and its amendments. Minimum capital of LBP 30,000,000.	Minimum 3 partners. Limited to the extent of the share capital
The offshore company subject to Decree Law no.46 of June, 24 1983 Minimum capital of LBP 30,000,000.	Minimum 3 partners. Limited to the extent of the share capital

Enterprises Federation: Directory listing the main associations of companies in Lebanon.

Source: Doing Business.

For Further Information: Consult Doing Business Website, to know about procedures to start a Business in Lebanon.
Investment Development Authority
The Competent Organization: The Ministry of the Economy and Trade issues the necessary authorizations but concretely, an investor who wishes to form a company in Lebanon has only one contact, the Investment Development Authority.

Principle: For more information, consult the Incorporation Law and the Privatization Law.
Minimum Debt-to-Capital Ratio Triggering Liquidation: For more information, consult the Incorporation Law and the Privatization Law.
Bankruptcy Laws: For more information, consult the Incorporation Law and the Privatization Law.
Reorganization and Rehabilitation Laws: For more information, consult the Incorporation Law and the Privatization Law.

Source: UN - United Nations

Opening Hours
Legal Weekly Duration: 48 hours a week.
Maximum Duration: 48 hours a week.
Night Hours: No specific payment (women can work at night in mechanical or manual engineering companies).

Working Rest Day: Minimum of 36h continuous (the rest day depends on the company).
Paid Annual Vacation: 15 days (after one year in the same company).
Retirement Age: 64 for men and women.
Child Labor and Minimum Age For Employment: No work before 13. Children have to take a medical examination before they can work. Children under 15 cannot work in hard industries or industries that could harm their health.
Informal Labor Market: 34.1%

Minimum Wage: 500 000 Lebanese pounds (USD 333) per month.
Average Wage: Average monthly gross earnings is USD 600 per month.
Other Forms of Pay
Pay For Overtime: Increased to 50%.
Pay For Rest Days Worked: There is no fixed rest day in Lebanon, so workers are payed the same way.
Pay For Night Hours: Night hours are not increased.
Pay For Overtime at Night: Increased to 50%.

The Areas Covered: - Child benefit;
- Sick and maternity leaf;
- Pension allowance.
Contributions: Contributions Paid By the Employer: Social contributions paid by employer:
Family allowances: 6%
Sickness and maternity: 7%
Compensation pension: 8.5%
Contributions Paid By the Employee: Illness and maternity 2%.
Competent Organization: CNSS

Method of Recruitment: Recruitment by agency or by contact. Send a CV and a motivating letter followed by an interview.
Recruitment Agencies: Careers LB
Rouaa Agency
Recruitment Websites: Learn 4 good
Top Liban

Type of Contract: Employment contracts are regulated by law. Individual negotiations complement it. Any company with more than 15 employees must send a copy of its rules and regulations to the Ministry of Labor. There are fixed-term contracts, open-ended contracts and internship contracts governed by the Lebanese legislation set up in 1946 and its subsequent amendments.

Cases of Dispute: Judges conciliation board:
- Disputes resulting from setting the minimum wage;
- Disputes resulting from accidents at work;
- Disputes resulting from dismissals, breach of contract, fines and, generally speaking, disputes between employers and employees resulting from the application of prescriptions of the present law.
For more information, consult the Labor code on the Ilo.org
Legal Framework: Employment Act on Ilo.org
Procedure: Creation of an arbritation court which will take a decision.
For more information, consult the Employment Act on Ilo.org.

Legal Framework: For more information, consult the Labor code on Ilo.org website.
Competent Legal Body: The Mohafazat is competent.
For more information, consult the Labor code on Ilo.org website.

Social Dialogue and Involvement of Social Partners: The main union in Lebanon is the CGTL (General Confederation of Lebanese Workers)
Unionization Rate: 56%
Unions: Website of the General Confederation of Lebanese Workers (only in Arabic).
Regulation Bodies: Lebanese Ministry of Labor

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