As an expanding business, you need to know the process to register your Lebanon company subsidiary. By having a registered entity, you can conduct business in Lebanon with total success.
Thus, you are ready to start your operations, hire employees, run your payroll, and any other required task. If you do not have a subsidiary, you are not allowed to work in Lebanon. Moreover, you cannot benefit from new relationships with other businesses and clients.
Doing business in Lebanon is a must for many businesses that look to this country as an opportunity to start their operations in the Middle East. This is why you need to know how to set up your Lebanon company subsidiary in this place.
Here at Connect Resources, we help you to expand to Lebanon with your Lebanon company subsidiary without worries. We offer our local subsidiary so you can use it to enter the market faster and you do not have to go through the process of incorporating a company.
By partnering with us you can save time and money, and put your efforts into building your business while we handle all the other tasks on your behalf.
Lebanon Subsidiary Setup Process
Before starting your operations in the country, it is advisable to learn about Lebanon companies law. You need to know how to incorporate your subsidiary following the rules established by the Authority.
You need to determine the location inside Lebanon where you would like to operate, as well as the activities you would like to carry out. Thus, based on your preferred location, you have to learn the companies law Lebanon that is applicable there.
This is because different cities or regions in Lebanon have some variations regarding business law in Lebanon. Therefore, the process may vary a little depending on the location you have chosen.
You can conduct your research about the new companies law Lebanon regarding the potential area where you would like to set up your business.
After that, you will have to start searching for a physical office for your business. It is preferable to search for an area that welcomes foreign incorporation since this will ensure the process is easier.
Then, you have to determine which type of entity you want to incorporate. This has to be following the types of activities you want to perform so you can have more freedom.
To sum up, the process of business setup in Lebanon consists in following the next steps:
- Prepare the Articles of Association and sign it in a public notary
- Get the stamp and pay the registration fees
- Open a local bank account and deposit the minimum capital. This will allow you to get a certificate
- Appoint your board of directors and request them to appoint a chairman
- Fill out the certificate of incorporation
- Fill the registration demand with the Commerce Registry and submit all the requested documents
- After the company is registered, you can liberate the capital from the bank
Here we have the types of entities you can incorporate in Lebanon:
- Limited Liability Company (LLC)
- Public Limited Company
- Offshore Company
- Holding Company
- Branch Office
- Representative Office
Subsidiary Laws in Lebanon
Depending on the type of entity you want to set up in Lebanon, you have to follow a set of rules. Setting up a company in Lebanon requires you to follow a specific process for its incorporation as well as to comply with the law for that type of entity.
For example, if you want to incorporate an LLC, you will need $3,400 in paid-up share capital, and also you have to incorporate it with at least three shareholders. Also, you need to appoint a director, which could be a local or foreign individual, and he or she will run the company.
In addition, every LLC should have a company attorney that complies with the rules of the Beirut Bar Association. Concerning audits, your company has to go through an annual audit if you comply with certain requirements, such as a share capital of over $20,000 and an annual turnover of over $500,000.
Limited Liability Company in Lebanon
Many investors prefer to incorporate a Limited Liability Company (LLC) in Lebanon since it offers many advantages.
It is commonly known as a S.A.R.L. since this is the French equivalent of an LLC. Here are some of the most important aspects you should know about LLC business setup companies in Lebanon:
- It must have at least three partners and a maximum of 20.
- Partners are liable for the amount of their contribution
- The company must have a manager and it can be a partner
- An LLC is subject to a 17% tax on corporate profit
- Foreign individuals can participate in LLC companies except for some activities and sectors
- It is required to obtain a license for conducting certain activities
Benefits of setting up a Lebanon Subsidiary
Doing business in Lebanon allows you to gain access to a lot of benefits. This country can be your gate to the Middle East so you can take your business to new frontiers.
Here are the benefits you can get when you set up your company in Lebanon:
- Establish new relationships with other businesses and reach a wider audience of potential clients
- Offer your products in the local market to increase your revenue
- Hire employees easily and build a solid workforce in Lebanon
- By incorporating an LLC, your parent company will be protected from litigations and fines that may occur since they operate separately
However, to receive all of these benefits, you have to go through the process of setting up company in Lebanon. Keep in mind that this takes time and effort. With our EOR services, you can obtain all of these benefits faster since you can use our subsidiary to carry out your operations.
Important considerations about Lebanon Subsidiary
If you are considering the setup in Lebanon, there are several aspects you have to take into account. Setting up a subsidiary involves following a set of steps to ensure total success.
Here are some of the crucial considerations you should have when it comes to incorporating a Lebanon company subsidiary:
- Dedicate some of your time to handling incorporation tasks
- Create a budget so you can determine how much you have to pay in fees
- Learn about local laws and regulations so you can stay compliant
- Do your research about the types of entities you can incorporate so you can determine which one is best for the activities you are going to conduct or the products you are going to offer.
- Look for a trusted partner, lawyer or consultant that can be your support to meet local guidelines.
Why Choose Us
Connect Resources can be your best ally when it comes to incorporating a subsidiary in Lebanon. We can offer you guidance and support so you can meet the new Lebanon companies law, and ensure your business stays in total compliance.
On the other hand, we offer you our local subsidiary and EOR Services so you do not have to go through the hassle of establishing your entity. We have local entities in the Middle East and we can help you meet the local regulations anywhere where you want to expand your business, including Saudi business law.