Set up a company in Lebanon.
A market in active recovery — with one of MENA’s most talented and trilingual workforces, a substantial diaspora, and the lowest CIT in the Eastern Mediterranean. Lebanon rewards investors who understand the conditions and structure accordingly. Coordinated through senior local Lebanese counsel.
Important context: Lebanon is in active recovery
We do not soft-pedal this. Lebanon’s banking sector has been in crisis since 2019; the Lebanese Pound has lost ~98% of its value; depositors’ access to legacy bank balances remains restricted. What changed: a new President (Joseph Aoun) and Prime Minister (Nawaf Salam) took office in early 2025, ending years of political vacuum. The Bank Resolution / FSDR Law was passed in December 2025. IMF programme negotiations are ongoing. The economy is showing “partial rebound” per the February 2026 IMF mission. Parliamentary elections are scheduled for May 2026. Lebanon now suits specific use cases — particularly dollar-revenue tech, pharmaceuticals, IDAL-incentivised sectors, and diaspora-funded ventures — with the right structure. We will tell you honestly whether your business is one of them.
To set up a company in Lebanon, you choose a legal structure (most commonly an SARL — sharikat that mas’uliyyah mahdudah, Lebanon’s LLC), prepare and notarise the Articles of Association, register with the Commercial Register (Sijill al-Tijari) at the Ministry of Justice, open a bank account and deposit the minimum share capital, obtain a Tax Identification Number from the Ministry of Finance, register for VAT if turnover thresholds are met, and register with the National Social Security Fund (NSSF) for any employees.
Standard formation takes 3 to 6 weeks for an SARL with foreign founders. 100% foreign ownership is permitted in most sectors (real estate and media have specific restrictions). Minimum SARL capital is LBP 5 million — nominal at current exchange rates. CIT is 17%, VAT is 11%, and IDAL-approved investments in qualifying sectors can secure CIT exemptions up to 5 years plus customs exemptions.
Grant & Graham coordinates the engagement through senior Lebanese legal and accounting counsel — structure advice, banking strategy (including "fresh dollar" account arrangements), Commercial Register filing, MOF registration, IDAL incentive applications where applicable, NSSF setup, and ongoing compliance.
17% CIT, 11% VAT. Plus IDAL incentives.
Lebanon’s headline 17% CIT is among the lowest in the Eastern Mediterranean and meaningfully below Egypt (22.5%), Jordan (20% general), Israel (23%) or Turkey (25%). VAT at 11% is also lower than every neighbour. For qualifying activities, IDAL incentives layer a CIT exemption up to 5 years and customs duty exemptions on top. The combination is genuinely competitive — but the macroeconomic conditions (currency, banking, FX accounting) require careful structuring.
Other notable items: Non-resident WHT 3.4% on payments for goods, 8.5% on services (both raised from 2.25%/7.5% in 2024 Budget Law). Stamp duty 0.4% on most contracts. 6% real estate transfer tax. Currency revaluation requirement: per Decision 338 (March 2025), companies must adjust accounting records to the BDL year-end exchange rate annually through 2026. No personal income tax on foreign-source income for non-residents. Approximately 35 tax treaties in force (France, UK, Italy, Germany, Spain, Russia, Egypt, UAE, Jordan, Tunisia, and others).
Nine reasons businesses still choose Lebanon.
Lebanon is not the right jurisdiction for every business. For the right ones — particularly dollar-revenue tech, pharmaceuticals, qualifying industrial activity, education, agro-food, and diaspora-connected ventures — the combination of talent, language, cost base, and IDAL incentives makes it commercially serious.
Trilingual workforce
Lebanon is uniquely trilingual in MENA — Arabic, French, and English are all genuinely working languages at the senior business level. Most professionals work seamlessly across all three. Critical for diaspora-facing businesses, European clients, and US-anchored operations.
One of MENA’s most educated talent pools
Lebanese universities (AUB, USJ, LAU, Saint-Joseph, Notre Dame) produce some of MENA’s best graduates. Strong technical, medical, engineering, and financial-services pipelines. Cost of senior talent is meaningfully lower than UAE or Saudi for equivalent calibre.
~14 million diaspora
Lebanese diaspora is roughly three times the resident population — concentrated in the US, Brazil, France, Canada, Australia, the Gulf, and West Africa. A genuine global network for distribution, investment, customer acquisition, and reverse-investment back into Lebanon. Diaspora remittances ~25-30% of GDP.
17% CIT — lowest in the Eastern Med
Below Egypt (22.5%), Jordan (20% general), Israel (23%), Turkey (25%), and Cyprus (12.5% headline but with surcharges). Combined with IDAL incentives in qualifying sectors, the effective rate for tech and industrial activity can be materially lower.
IDAL incentive framework
The Investment Development Authority of Lebanon offers up to 5-year CIT exemption, customs exemption, work-permit facilitation, and land allocation for approved investments in industry, agriculture, agro-industry, telecoms, technology, tourism, and media. A genuine structural tool.
Dollar-functional economy
Despite the LBP collapse, Lebanon now operates as a substantively dollarised economy — most business transactions, real estate, salaries, and pricing in USD. “Fresh dollar” accounts (new dollar deposits, distinct from crisis-era legacy deposits) work normally for inbound investment, supplier payments, and salary disbursement.
Tech & pharmaceuticals resilient
Lebanon’s tech sector (Beirut Digital District, AUB Innovation Park) has remained internationally competitive throughout the crisis — many companies serve US, European, and Gulf clients in USD. Lebanese pharmaceutical exports rank in MENA’s top tier on quality. Both sectors are diaspora-funded and largely insulated from local banking.
100% foreign ownership in most sectors
Unlike Kuwait, UAE mainland (historically), or Saudi mainland, Lebanon permits 100% foreign ownership in nearly all commercial sectors. Real estate has area-based restrictions for foreigners; media has a 25% ownership cap; trading licences in some categories require Lebanese partners. Everything else is freely structured.
Recovery in motion
New government in place since February 2025. Bank Resolution Law passed December 2025. IMF programme negotiations active throughout 2026. S&P upgrade late 2025. Parliamentary elections May 2026. Multiple-exchange-rate unification underway. Genuine reform momentum — with the standard caveats about Lebanon’s execution risk.
Seven legal structures — one usually fits.
For most foreign investors, the SARL is the practical default. The SAL (Joint Stock Company) is used for larger investments, banks (mandatory), and listings. Branch and Representative Office are foreign-presence forms with specific characteristics.
Limited Liability Company
The standard structure for trading, services, and small-to-medium operations. 3 to 20 shareholders. Minimum capital LBP 5 million (nominal at current rates). 100% foreign ownership permitted in most sectors. Manager must be appointed — may be foreign-resident with appropriate authorisation.
Joint Stock Company
For larger operations, IDAL-incentivised investments, and listings on the Beirut Stock Exchange. Minimum 3 shareholders. Minimum capital LBP 30 million. Mandatory for banks, insurance companies, and certain other regulated activities. Majority of board members must be Lebanese citizens.
Holding Company
SAL-form holding company with specific tax regime under Law No. 45/1983. Used for owning shares in other companies (Lebanese or foreign), patents, real estate. Exempt from CIT on dividends from subsidiaries. Lower capital duty. Useful structuring tool for regional groups.
Offshore Company
SAL-form offshore company under Law No. 19/2008. Activities restricted to operations outside Lebanon. Exempt from CIT and dividend tax. Pays only flat annual fee (LBP 1 million). Useful for international trading and group services entities. Cannot conduct local business.
Branch
Operating branch of a foreign company. Can conduct commercial activities. Parent retains full liability. Subject to 17% CIT plus 10% branch remittance tax on profits transferred abroad. Required to register with Commercial Register. Useful where parent must remain the legal entity.
Representative Office
Liaison office of a foreign company — limited to marketing, research, and representation. Cannot generate revenue in Lebanon. Useful for market exploration before fuller commitment.
General Partnership
Two or more partners with unlimited joint and several liability. No minimum capital. Tax-transparent. Used in some Lebanese professional services contexts (law firms, audit firms). Rarely the right choice for foreign investors.
Sole Proprietorship
Single owner, no separate legal personality, full personal liability. No minimum capital. Generally limited to Lebanese nationals or residents. Used for freelancers and small local traders. Rarely the right structure for foreign investors.
Talk to us first
SARL is the workhorse for most foreign investors. Holding or Offshore for international structuring. SAL for IDAL-incentivised investments. Branch where the parent must remain the legal entity. The banking-strategy choice (fresh-dollar vs traditional) matters from day one.
Book a call →From decision to live entity.
The end-to-end registration sequence for a Lebanese SARL — coordinated by Grant & Graham through senior Lebanese legal and accounting counsel.
Structure & banking strategy
Before incorporation: SARL vs SAL vs Holding vs Offshore vs Branch. For most foreign businesses, SARL is right; for IDAL-incentivised activity, SAL is required. Banking strategy is equally important — decide which Lebanese bank, whether to operate exclusively via fresh-dollar accounts, and whether parent funding will flow as equity or shareholder loans.
Trade name reservation
Reserve the trade name at the Ministry of Economy and Trade. Submit 2 to 3 alternatives. Names must be unique and comply with Lebanese naming regulations. Confirmation typically within 1 to 2 working days.
Articles of Association & founder documentation
Draft the Articles of Association in Arabic (with French/English translation for foreign founders) under the Commercial Code. Define shareholders, share capital, business objects, manager appointment, signatory authority. Apostilled good-standing certificate and constitutional documents required for foreign corporate shareholders.
Notarisation
Articles signed before a Lebanese notary (or apostilled abroad for foreign founders). Lebanese notarial fees are still computed on LBP-denominated capital but the practical fee is modest at current LBP rates. Power of attorney to local counsel typically arranged at this stage for filing.
Capital deposit at a Lebanese bank
Open a temporary capital account at a Lebanese bank. Deposit the minimum share capital (LBP 5 million for SARL, LBP 30 million for SAL). The bank issues a capital deposit certificate — required for Commercial Register filing. Practical reality: open this account as a fresh-dollar account from day one if dollar funding will flow into the business.
Commercial Register filing
Submit the incorporation file to the Commercial Register (Sijill al-Tijari) at the Ministry of Justice. The Commercial Register issues the Registration Number — the foundational identity document for the company. Registration typically 1 to 3 weeks after a complete filing depending on regional registry workload.
Commercial Register →Ministry of Finance TIN & VAT
Register with the Ministry of Finance to obtain the Tax Identification Number (TIN). Register for VAT if turnover is expected to exceed LBP 5 billion in 4 consecutive quarters (or voluntarily, useful for input VAT recovery on dollar-denominated supplier invoices). Online registration via the MOF portal.
MOF →NSSF & Ministry of Labour
Register with the National Social Security Fund (NSSF / CNSS) as an employer. Required before paying any salaries. Contributions: employer ~23.5% (covering sickness/maternity, family allowances, end-of-service indemnity), employee ~3% on insurable salary. Work permits for foreign employees via Ministry of Labour.
NSSF →IDAL incentive application (if applicable)
For qualifying activities in industry, agriculture, agro-industry, telecoms, technology, tourism, or media: submit IDAL application with business plan, employment commitment, capital expenditure plan, and economic-impact rationale. IDAL review typically 2 to 4 months. Approval grants up to 5-year CIT exemption, customs exemption, and work-permit facilitation.
IDAL →Ongoing compliance
Quarterly WHT and VAT returns. Annual CIT return by the end of April following the tax year. Annual financial statements in line with Lebanese accounting standards (largely IFRS-aligned). Statutory audit required for SALs and SARLs above thresholds. Mandatory annual currency revaluation of receivables, payables, cash, and bank balances at BDL year-end exchange rate (per Decision 338, March 2025) through 2026.
What it costs to incorporate & run.
All figures are indicative for a standard SARL with one or two foreign shareholders. Lebanon is among the cheapest jurisdictions in MENA for setup and ongoing operation — one of the lasting commercial benefits of the LBP devaluation. The setup process is administratively heavier than the cost suggests.
One-time setup
IDAL-approved structures add 2 to 4 months in timeline and approximately €3,000–€5,500 in additional fees, but unlock up to 5-year CIT exemption. SAL setup adds approximately €2,000–€4,000 to the SARL baseline.
Ongoing monthly / annual
All figures quoted in USD because the LBP equivalents shift materially with exchange-rate movements. Mandatory annual currency revaluation of accounting records adds modest additional accounting work in 2025 and 2026. Salaries in dollar-revenue businesses are typically paid in fresh dollars.
The legal framework to know.
A summary of the core legislation governing companies in Lebanon — substantive work is delivered through senior Lebanese counsel.
Corporate Law
- Lebanese Commercial Code (as amended)
- Code of Obligations and Contracts
- Holding & Offshore Laws No. 45/1983, 19/2008
Tax Law
- Income Tax Law (Decree-Law 144/1959, as amended)
- VAT Law No. 379/2001
- Budget Laws 2024 & 2026
- BDL Decision 338 / Law 330 (revaluation)
Employment Law
- Lebanese Labour Code (as amended)
- Social Security Law (NSSF)
- Work-permit regulations for foreign employees
Data & Cyber
- Electronic Transactions & Personal Data Law No. 81/2018
- BDL Circulars on data protection
- Banking Secrecy Law (reform passed 2022)
Investment & IDAL
- Investment Development Law No. 360/2001
- IDAL incentive schemes (Package Deal Contract, Investment Project Permit)
- Foreign Investment Restrictions Law (real estate, media)
Intellectual Property
- Patents Law No. 240/2000
- Trademarks Law (IP framework 2000 onwards)
- Copyright Law No. 75/1999
Lebanon, answered.
Four steps from enquiry to live entity.
Discovery call
30-minute conversation to understand your business, sector, IDAL eligibility, dollar-revenue profile, banking strategy, and what you actually need from the Lebanese entity. We tell you honestly whether Lebanon fits.
Recommendation
Senior advisory on the right structure (SARL, SAL, Holding, Offshore, Branch), banking partner, fresh-dollar arrangements, IDAL incentive eligibility, and tax regime. Fixed quote in EUR or USD.
End-to-end formation
Commercial Register filing, MOF tax registration, NSSF employer setup, IDAL application where applicable, banking introductions and fresh-dollar account setup, sector licensing.
Ongoing support
Retained accounting, VAT and WHT compliance, payroll, annual CIT return, statutory audit coordination, mandatory annual currency revaluation, and structural changes as you scale.
Ready to incorporate in Lebanon?
Tell us in 25 minutes what you need. We’ll tell you honestly whether Lebanon is the right Levant base for your business — given the current conditions — and if it is, we’ll handle the setup end-to-end through senior local counsel.