Doing Business with Lebanon

A comprehensive guide to doing business, exporting, investing, and manufacturing in Lebanon.

Foreign Direct Investment with the International Trade Council / Company Incorporation / Company Formation

Investment Development Authority of Lebanon (IDAL)

Tel: +961 1 983306
Email: invest@idal.com.lb
Web: www.investinlebanon.gov.lb

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Lebanese Customs Administration

Tel: +961 1 988 510 – 1
Email: info@customs.gov.lb
Web: www.customs.gov.lb

National Chamber of Commerce

Chamber Of Commerce Industry and Agriculture

Tel: +961 1 744 165
Email: dg-office@ccib.org.lb
Web: www.ccib.org.lb

Ministry of Economy Information from the International Trade Council - a Peak-body - international chamber of commerce

Ministry of Economy & Trade, Lebanon

Tel: +961 1 982 360
Email:
info@economy.gov.lb
Web: www.economy.gov.lb

  • Type of Government: Parliamentary Republic
  • Population: Approximately 5.3 million
  • GDP: Around $20 billion USD
  • Corporate Tax Rate: 17%
  • Personal Income Tax Rate: Progressive, up to 25%
  • Major Exports: Jewelry, base metals, chemicals
  • Major Imports: Mineral fuels, machinery, vehicles

 

Exporting to Lebanon involves several steps. Here’s a comprehensive guide:

  1. Research Market Requirements

    • Understand Lebanon’s import regulations and standards for your product.
  2. Identify Local Partners

    • Establish relationships with local distributors or agents in Lebanon.
  3. Prepare Export Documentation

    • Include commercial invoices, packing lists, and certificates of origin.
    • Ensure compliance with labeling and packaging requirements.
  4. Arrange Logistics and Shipping

    • Choose a reliable shipping company experienced with exports to Lebanon.
    • Ensure accurate completion of shipping documents, such as bills of lading.
  5. Customs Declaration

    • Work with a customs broker to facilitate the clearance process.
    • Submit all required documentation to Lebanese Customs.
  6. Understand Duties and Taxes

    • Familiarize yourself with Lebanon’s import duties and applicable taxes.
  7. Distribution and Sales

    • Establish distribution channels within Lebanon.
    • Consider partnerships with local businesses for effective market penetration.

Key Contacts

  • Lebanese Customs
  • Investment Development Authority of Lebanon

Importing goods into Lebanon involves several steps. Here’s a comprehensive guide:

  1. Register as an Importer

    • Ensure your business is registered with the Lebanese Ministry of Economy and Trade.
  2. Classify Your Goods

    • Determine the correct Harmonized System (HS) code to identify applicable duties and taxes.
  3. Check Import Regulations

    • Ensure compliance with any specific standards and obtain necessary permits or certifications.
  4. Find a Reliable Supplier

    • Establish a relationship with a trustworthy overseas supplier.
  5. Arrange Shipping and Logistics

    • Choose a reliable freight forwarder.
    • Ensure all shipping documents are in order, including the bill of lading and commercial invoice.
  6. Customs Declaration

    • Submit all required documentation to Lebanese Customs.
    • Work with a customs broker if necessary to facilitate the process.
  7. Pay Duties and Taxes

    • Calculate and pay applicable import duties and taxes through the Lebanese Customs system.
  8. Receive Your Goods

    • Arrange for the transportation of goods from the port to your warehouse or distribution center.

Key Contacts

Incorporating a company in Lebanon involves several steps. Here’s a comprehensive guide:

  1. Choose a Company Type

    • Decide on the legal structure (e.g., Joint Stock Company, Limited Liability Company).
  2. Reserve a Company Name

    • Check and reserve the desired company name at the Commercial Register.
  3. Prepare Incorporation Documents

    • Draft the Articles of Association and prepare other necessary documents.
  4. Open a Bank Account

    • Deposit the initial share capital required for your company type.
  5. Submit Incorporation Documents

    • File all documents with the Commercial Register.
  6. Pay the Registration Fee

    • Fees vary depending on the company type and capital amount.
  7. Obtain a Tax Identification Number

    • Register with the Ministry of Finance to obtain a tax number.
  8. Register for Social Security

    • Ensure compliance with employee social security requirements.

Costs

  • Registration Fees: Vary based on company type and capital; consult the Commercial Register for specifics.
  • Notary Fees: Additional costs may apply for document verification.

Key Contacts

Setting up a manufacturing plant in Lebanon involves several steps. Here’s a comprehensive guide:

  1. Conduct Market Research

    • Analyze demand, competition, and location advantages in Lebanon.
  2. Choose a Suitable Location

    • Consider available infrastructure and proximity to resources.
    • Check zoning regulations and obtain necessary permits from local authorities.
  3. Incorporate Your Company

    • Register your business with the Lebanese Commercial Register.
  4. Obtain Necessary Permits and Licenses

    • Apply for industrial licenses and environmental permits from relevant ministries.
  5. Secure Financing

    • Explore options through banks or investment partners.
  6. Design and Construct the Facility

    • Hire architects and contractors for design and construction.
    • Ensure compliance with local building codes and safety regulations.
  7. Install Equipment and Machinery

    • Purchase and set up machinery necessary for production.
    • Ensure safety and operational standards are met.
  8. Hire and Train Workforce

    • Recruit skilled labor and provide necessary training.
  9. Set Up Supply Chain and Distribution

    • Establish relationships with suppliers and distributors.
  10. Begin Operations

    • Start production and monitor operations for efficiency and quality control.

Key Contacts

Registering a trademark in Lebanon involves several steps. Here’s a comprehensive guide:

  1. Conduct a Trademark Search

    • Ensure your trademark is unique and not already registered in Lebanon.
  2. Prepare Your Application

    • Include trademark design, classification of goods/services, and applicant details.
  3. Submit the Application

    • File your application with the Lebanese Ministry of Economy and Trade.
  4. Pay the Application Fee

    • Fees vary; check with the Ministry for the latest rates.
  5. Examination Process

    • The application undergoes examination for compliance and potential conflicts.
  6. Publication and Opposition

    • If approved, the trademark is published for opposition. A period is given for third parties to oppose.
  7. Registration and Certification

    • If no oppositions arise, the trademark is registered, and you receive a Certificate of Registration.
  8. Maintain and Renew the Trademark

    • Trademarks need to be renewed periodically to maintain protection.

Costs

  • Application Fee: Varies; confirm with the Ministry of Economy and Trade.
  • Registration Fee: Additional fees apply upon successful registration.

Key Contacts

Resolving commercial disputes in Lebanon involves several steps. Here’s a guide on the process:

  1. Attempt Negotiation

    • Start by negotiating directly with the other party to reach an amicable solution.
  2. Mediation

    • Engage a mediator to facilitate discussions. This is often quicker and less formal than court proceedings.
  3. Arbitration

    • Consider arbitration for a private and binding resolution. Both parties must agree to this method.
  4. Seek Legal Advice

    • Consult with a lawyer specializing in commercial law for guidance on your case.
  5. File a Lawsuit

    • If other methods fail, file a lawsuit with the appropriate Lebanese court. Prepare necessary documentation and evidence.
  6. Court Proceedings

    • Attend hearings and present your case. Follow legal procedures as guided by your lawyer.
  7. Judgment and Enforcement

    • If a judgment is made, ensure its enforcement through legal channels.

Costs

  • Mediation and Arbitration Fees: Vary depending on the service provider.
  • Court Filing Fees: Depend on the jurisdiction and case type; consult local courts.
  • Legal Fees: Vary based on the lawyer and complexity of the case.

Key Contacts

When considering doing business in Lebanon, various social, cultural, political, and economic factors must be taken into account.

Social and Cultural Factors

  • Language: Arabic is the official language; French and English are widely spoken in business.
  • Business Etiquette: Personal relationships and trust are crucial. Meetings often start with small talk.

Political Factors

  • Government Structure: Parliamentary Republic.
  • Stability: Political situations can be volatile, impacting business operations.

Economic Factors

  • Diverse Economy: Key sectors include banking, tourism, and agriculture.
  • Corporate Tax Rate: 17%.

Foreign Exchange

  • Currency: Lebanese Pound (LBP).
  • Exchange Stability: The currency has faced fluctuations; transactions often occur in USD.

Rule of Law

  • Legal Framework: Mix of civil law and religious laws. Contracts and property rights are protected.
  • Judiciary: Legal processes can be slow; alternative dispute resolution is recommended.

Business Environment

  • Infrastructure: Developing, with ongoing improvements needed in transport and energy.
  • Workforce: Educated and multilingual, with a strong emphasis on higher education.

Key Resources

Our Members Include Leading Organizations in Lebanon

Ask our Experts on Doing Business in/with Lebanon

If you’re looking to do business or invest in Lebanon, we can provide expert guidance, market insights, and valuable connections to help you navigate the local landscape. Contact us today to discover how we can assist in making your venture a success.