Lebanon’s strategic location, free market economy and liberal financial environment have traditionally played a key role in making Lebanon the favored destination of investors.
Beirut Practice Team will accompany you every step of the way, from inception until the completion of your project and beyond.
IN BRIEF
IN BRIEF
A Lebanese Joint Stock Company (JSC) is constituted among shareholders who are only liable to the extent of their contribution and who subscribe to negotiable instruments referred to as ‘shares’.
Lebanese joint stock companies must necessarily have the Lebanese nationality, and must by all means establish headquarters in Lebanon.
IN BRIEF
A Limited Liability Company is governed by Decree-Law No 35 of August 5, 1967 and is commonly referred to in Lebanon as S.A.R.L (this is the French equivalent of L.L.C). An S.A.R.L is founded by at least three partners with a maximum of 20. As indicated by its name, the company’s partners have a limited liability, limited to the amount of their contribution to the company.
IN BRIEF
A Foreign Commercial Company must register as a ‘Branch’ or ‘Representative’ office to operate in Lebanon.
IN BRIEF
Written contracts shall be formulated in Arabic, but could be translated to a foreign language if the employer or the salaried person is a foreigner. Contracts should comply with the provisions of the Common Law.
Employers who hire (15) or more salaried persons shall be required to present a scheme regulating working conditions in his establishment. The scheme must be ratified by the Minister of Labor.
The minimum wage in Lebanon is currently set at LBP 650,000 (USD 450).
The standard working time is (8) hours per day or the equivalent of 48 hours per week. Minimum of (1) hour rest that shall be interposed in the middle of the day whenever the duration of work exceeds six hours for men and five hours for women. Every salaried person employed in an establishment for at least one year shall be entitled to an annual leave of (15) days with full pay.
The employer and the employee can mutually agree to break a written work contract at any time, in which case there is no payment for damages or entitlements. However, in situations where one party breaks the contract, the injured party is entitled to seek compensation. If the employee was dismissed without any notification period, he should be compensated for the notification he’s entitled to, according to the below:
REQUIRED MINIMUM NOTIFICATION PERIODS FOR EMPLOYERS AND EMPLOYEES| Duration of service | Minimum notification period |
| Less than 3 years | 1 Month |
| 3 – 6 years | 2 Month |
| 6 – 12 years | 3 Month |
| More than 12 years | 4 Month |
Every foreigner seeking entry into Lebanon to practice a certain profession or work, with or without pay, is required to obtain prior approval from the Ministry of Labor (except for artists who shall obtain the approval from the General Security Directorate).
If the foreign applicant is a salary earner, the employer is required to submit to the Ministry of Labor an application wherein he declares his approval to receive the foreign worker. The application must be supported by documents and instruments, as well as a labor contract certified by a public notary in Lebanon, or by one of the Lebanese Diplomatic Corps accredited abroad.
A foreigner, who intends to cumulate the quality of partner/shareholder, should fulfill the following conditions:
The National Social Security Fund (NSSF) provides employees with national insurance coverage for sickness, maternity care, family allowance, end-of-service pensions, work-related accidents and diseases. Social Security contributions are calculated as a percentage of monthly salaries, including overtime, bonuses, and fringe benefits. All employers in Lebanon are required to register their employees at the NSSF within (1) month from the start of operations, and are required to pay social security contributions on their behalf.
Foreigners working in Lebanon (holders of work permits) are entitled to social security benefits, provided their countries of origin offer equal treatment to Lebanese workers (i.e. France, Italy, UK, Syria, and Belgium).
EMPLOYERS SOCIAL SECURITY CONTRIBUTION| Contribution Type | Employee’s Contribution | Employer’s Contribution |
| Sickness and maternity | 2% | 7% |
| Family allowances | 0% | 6% |
| End of service allowance | 0% | 8.5% |
Non-resident foreigners and Lebanese are exempted from Social Security contributions if they are working in Lebanon and following an employment contract concluded abroad, provided their employer produces evidence that they are entitled to social security benefits in their country of residence at least equivalent to those offered in Lebanon.
A foreigner which obtains a prior approval from the Ministry of Labor is required to apply for a work permit within (10) days of the date of entry into Lebanon. The Ministry may revoke the prior approval if the foreigner fails to arrive to Lebanon within a maximum period of (3) months from the date of approval.
The work permit may be granted and renewed for a maximum period of (2) years from the date of issuance. The renewal application must be filed within at least (1) month prior to the expiry of its validity, lest it is automatically considered null and void.
A foreign employer/employee must apply and submit the required documents for a residency permit at the General Security Directorate.