Issued decree broadening foreign participation in business activities
13 Oct 2022
On 13 October 2022, the Minister of Economy of Libya issued Decree No. 944, regulating foreign participation in business activities within the country. The Decree introduced several changes concerning the regulation of foreign companies and foreign participation:
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New company structures. Article 14 allows joint ventures to be formed as limited liability companies, provided that all partners are natural persons and the business is in specified sectors such as medical equipment, food, wood, recycling, clothing and electronics. Article 26 formally introduces “temporary branches,” which may be established for short-term projects, subject to restrictions including a maximum duration of 18 months and a limit of three agreements.
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Expanded activities for foreign branches. Article 21 lists the permitted fields for branch operations, which include air transport and international cooperation, among others.
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Foreign ownership limits. Article 18 establishes that foreign participation in joint ventures may not exceed 75 per cent, but this may be increased to up to 89 per cent by decision of the Minister, with justification. Previously, foreign ownership in joint ventures had been capped at 49 per cent.
Nature of measure:
Type:
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Entry and establishment (Ownership and control)
Industry:
Inward FDI:
Yes
Outward FDI:
No
Sources:
