Forming a company in Libya involves several steps and procedures. It is important when considering this option to consult with a legal professional or business advisor in Libya who can guide you through the specific requirements and regulations.

The process may vary depending on the type of company you wish to establish and other factors.

The BLBA can connect you with appropriate providers in this sector

Here are the general steps involved in forming a company in Libya:

Determine the Company Type:

  • Decide on the type of company you want to form. Common options include a Limited Liability Company (LLC), Joint Stock Company (JSC), or Branch Office.

Choose a Company Name:

  • Select a unique name for your company that is not already registered by another entity. The name should comply with Libyan regulations and reflect the nature of your business.

Memorandum of Association:

  • Prepare the Memorandum of Association (MOA) which outlines the company’s purpose, shareholders, share capital, and other essential details. The MOA should be drafted in Arabic.

Shareholders and Share Capital:

  • Determine the shareholders and their respective ownership percentages. Set the share capital, minimum required capital, and payment terms.

Commercial Register:

  • Register the company at the Commercial Register Office (CRO) of the local municipality where your company will be based. You will need to submit the necessary documents and pay the required fees.

Articles of Association:

  • Prepare the Articles of Association (AOA) that outlines the internal regulations and governance structure of the company. The AOA should be in accordance with Libyan laws and drafted in Arabic.

Notarization and Authentication:

  • Notarize the MOA and AOA at a Libyan Public Notary Office. The documents should be signed by the shareholders and authorized representatives of the company. Then, authenticate the documents at the Ministry of Foreign Affairs or the relevant authorities.

Tax Registration:

  • Register your company for tax purposes with the Libyan Tax Authority. Obtain a taxpayer identification number and comply with the applicable tax laws and regulations.

Social Security Registration:

  • Register your company with the Libyan Social Security Institution to ensure compliance with social security obligations for your employees.

Obtain Licenses and Permits:

  • Depending on your business activities, you may need to obtain specific licenses and permits from relevant government agencies or ministries. Contact the appropriate authorities to determine the requirements and application process.

Bank Account and Capital Deposit:

  • Open a bank account in the company’s name and deposit the required share capital. Obtain a certificate of deposit from the bank, which may be needed during the registration process.

Labor Contracts and Insurance:

  • Ensure compliance with labor laws and regulations by preparing employment contracts for your employees. Provide mandatory insurance coverage such as workers’ compensation and health insurance.

Registration with Chamber of Commerce:

  • Register your company with the Libyan Chamber of Commerce and Industry or the relevant local chamber to access their services and benefits.

Post-Incorporation Procedures:

  • Once your company is registered, you may need to fulfill additional obligations such as obtaining commercial licenses, registering for value-added tax (if applicable), and complying with reporting and auditing requirements.



The registration of foreign companies in Libya is still regulated by the Libyan commercial law 23/2010 and Ministry of Economy decree 207/2012. These laws regulate the form of incorporation and the sectors available for foreigners to start a business in Libya.

Branch Office 

This option is the most favourable to foreigners who are looking to establish a legal presence and register their company in Libya where establishing a company branch in Libya will give the foreign company 100% control over the entity in Libya.

The minimum capital investment required for registering a foreign company branch in Libya is 250,000 Libyan Dinar (Approx. 55,000 US Dollars, Jan-22 rate), and the registration could be granted for a period of one, three or five years. There are certain activities that are permissible to incorporate and register the company branch under, these activities and categories are listed in MoE decree 207/2012,

Albeit the branch would be 100% owned by the foreign company, there is a regulatory requirement that the branch manager of its deputy must be a Libyan national. 

Joint Venture Company 

According to MoE decree 207/2012, a foreigner may establish a legal presence in Libya and enter the Libyan market by establishing a joint venture company with a Libyan partner. The restrictions for such form of incorporation are mainly about the ownership, where according to the law, Libyan ownership in JV companies must be a minimum of 51%, in addition, the majority of the company’s board of directors as well as its director, must also be Libyan nationals.

The minimum capital investment required of 1 million Libyan Dinars (LD) of which a 1/3 must be paid before incorporation.

Under Investment Law Company

It is permissible to have your company registered in Libya and run your business under the provisions of Investment Law 9/2010. However, there are certain sectors that will make your company eligible for registration under Libyan investment law.

Such registration will grant the investor facilitations represented in tax and customs exemptions. 

Representative Office

Registering as a representative office of a foreign company is a form that is mainly used by the banking sector. where many international banks are using this form to have a representation in Libya and to coordinate and market their operations and services outside of the country.

However, many other companies who’s their goal is not to acquire local contracts or to make money in Libya are using this form of incorporation to legally represent their companies and conduct marketing activities in Libya.

Operating through a Libyan Distributor/Commercial Agent 

In Libya, foreign investors can work through a Libyan agent, who should be an authorized commercial agent. The potential agent needs to obtain permission from the competent authority (the Ministry of Economy) to operate in Libya. The agent must be licensed and registered with the Commercial Agency Department in the Ministry of Economy.

There are no restrictions on the areas permitted to foreign companies in this form. The only principle is that the entity must be a licensed entity in its jurisdiction and to be the same entity which enters into an agency agreement with the local agent. 

Establishing a Company in the Free Zone 

According to Law no 9 of 2000 in relation to organizing transit of goods & free zones and its regulations, several Free zones were incorporated in Libya some of them are currently active like Misrata Free Zone (MFZ)

Some activities are permissible by MFZ, these activities could be reviewed at their website here.


The labor law in Libya governs the relationship between employers and employees and sets out the rights and obligations of both parties. Here are some key points regarding labor law in Libya:

  1. Employment Contracts: An employment contract is required for all employees and should include essential details such as the nature of the work, duration of employment, working hours, wages, benefits, and termination provisions. Contracts should be in writing and preferably in Arabic.
  2. Working Hours: The standard working week in Libya is 48 hours, with a maximum of 8 hours per day. However, different rules may apply to specific sectors or occupations. Employees are entitled to at least one rest day per week.
  3. Overtime: If employees work beyond their normal working hours, they are entitled to overtime pay, which is typically calculated as a percentage of their regular wage. The exact rate of overtime pay may vary depending on the circumstances and is typically negotiated between the employer and employee.
  4. Annual Leave: Employees are entitled to annual leave, typically ranging from 21 to 30 days per year, depending on their length of service. Annual leave should be paid and taken at a mutually agreed time between the employer and employee.
  5. Public Holidays: Libyan labor law recognizes several public holidays, and employees are generally entitled to a paid day off on these occasions. The specific public holidays may vary, and it’s advisable to consult the relevant authorities for an updated list.
  6. Maternity and Paternity Leave: Female employees are entitled to maternity leave, typically lasting for a specified period before and after childbirth. The duration of maternity leave may vary, but it is generally at least 50 days.
  7. Social Security: Employers are required to register their employees with the Libyan Social Security Institution. Contributions to social security funds are typically shared between the employer and employee, and they provide various benefits such as healthcare, disability coverage, and pensions.
  8. Termination of Employment: Termination of employment may occur through various means, including mutual agreement, expiration of contract, resignation, or dismissal. The labor law in Libya provides guidelines on notice periods, severance pay, and grounds for termination. Dismissal of employees may require valid reasons and must follow the procedures outlined in the law.

It’s important to note that the labor law in Libya is subject to change, and specific regulations may vary. It is advisable to consult the Libyan Ministry of Labor or seek legal advice to ensure compliance with the latest labor regulations and requirements.