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flag Libya Libya: Operating a Business

In this page: Setting Up a Company | The Active Population in Figures | Working Conditions | Cost of Labor | Social Partners

 

Setting Up a Company

Joint stock company.
Number of partners: Minimum number of shareholders according to 4 thresholds (13 shareholders; 25 shareholders; 50 shareholders; 100 shareholders).
Capital (max/min): - 1st threshold: maximum capital of 1 million LYD,
- 2nd threshold: capital of between 1 and 2 million LYD,
- 3rd threshold: capital of between 2 and 4 million LYD,
- 4th threshold: capital above 4 million LYD.
Shareholders and liability: Each member remains financially responsible for the acts of the company.
The foreign company
Number of partners: Minimum of 2 partners. One of them must be of Libyan nationality.
Capital (max/min): The capital must be between a minimum of 5 000 LYD and a maximum of 30 000 LYD. The Libyan partner must hold at least 51% of the capital.
Shareholders and liability: Liability is limited to the amount contributed.
The office of representation
Number of partners: A minimum of 2 partners, one of whom must be of Libyan nationality.
Capital (max/min): The office of representation must open a non-resident bank account with funds supplied by the parent company. The deposit must be at least equal to 50 000 LYD.
The foreign subsidiary
Number of partners: A minimum of 2 partners, one of whom must be of Libyan nationality.
Capital (max/min): The subsidiary must set aside a sum reserved for setup and operating that must be at least 150 000 LYD.
Shareholders and liability: Liability is limited to the amount contributed.
The Competent Organization
Decree n°8 of 9 January 2005 modifying some provisions of law 65/1970 stipulates that depositing a request with the Bureau of the investment Register and Commercial Register is compulsory for any foreign company wishing to open an office of representation in Libya. In the request the following must be mentioned: the name, profession and postal address of the representative responsible for filing the request.
 
Business Setup Procedures
Libyatrade, Libya Trade Laws.

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The Active Population in Figures

201120122013
Labor force 1,252,0001,875,0001,644,000

Source: CIA - The world factbook

 
200920102011
Total activity rate -52.80%53.40%
Men activity rate 78.90%76.90%76.80%
Women activity rate 24.70%30.40%30.10%

Source: UN - United Nations

 

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Working Conditions

Legal Weekly Duration
 48 hours
Retirement Age
 Retirement age is fixed at 65 for men, 60 for women and 62 for civil servants.
Working Contracts
Employment law is regulated by law number 15 of 1981.
Foreign employees cannot expect a work contract in Libya unless they have a work permit and a residence permit issued by the competent Libyan authorities. The contract is in the form of a written undertaking that must include:
- the duration of the undertaking,
- the rights and obligations of the employee,
- the number of hours worked daily and weekly,
- holidays,
- length of leave periods,
- the salary as well as overtime payments,
- accommodation,
- insurance.

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Cost of Labor

Minimum Wage
LYD 250 per month (source: ILO, 2011).
Average Wage
The average monthly gross earnings is LYD 190.
Social contributions
Social Security Contributions Paid By Employers:  11.25%
Social Security Contributions Paid By Employees:  3.75%

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Social Partners

Social Dialogue and Involvement of Social Partners
 There is only one trade union in Libya that employees are allowed to join. This is the National Federation Of Unions, formed in 1972. Foreign workers are not allowed to form unions.
Labor Regulation Bodies
The Revolutionary Command Council (RCC)

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Last Updates: October 2014