Tightens the regulation of foreign participation in business activities
13 Oct 2022
On 13 October 2022, the Minister of Economy of Lybia issued Decree No. 944, regulating foreign participation in business activities within Libya. The Decree introduced several changes to the regulation of foreign companies and foreign participation in Libya:
- Higher capital requirements for branches: The minimum capital requirement for foreign branches has been increased from LYD 250'000 (approximately $ 51'212) to LYD 2 million (approximately $ 409'700) for one activity, and LYD 4 million (approximately $ 819'400) for two activities.
- Restrictions on non-profit activities: Foreign entities are prohibited from engaging in non-profit activities in Libya.
- Annual reporting: Foreign companies and branches are now required to submit annual reports to the Libyan Company Register.
- Capital requirements for representative offices: The capital required for establishing a representative office is set at LYD 150,000 (approximately $ 30,727). Representative offices can only engage in market exploration activities.
- Black list: A "Black List" has been created to bar foreign companies that violate Libyan law from conducting business in the country.
Nature of measure:
-
Entry restriction
-
Treatment and operation
Type:
-
Entry and establishment (Ownership and control)
-
Treatment and operation (Operational conditions )
Industry:
Inward FDI:
Yes
Outward FDI:
No
Sources:
