Setting Up a Company

Types of Companies and Capital (Max/Min)	Number of Partners/Shareholders and Liability
Joint stock company. The law defines 4 thresholds. - 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.	Minimum number of shareholders according to the 4 thresholds: - 13 shareholders, - 25 shareholders, - 50 shareholders, - 100 shareholders. Maximum share of capital available per shareholder according to the 4 thresholds: - 4% of capital, - 2% - 1%, - 0.5%.
The foreign company The capital must be between a minimum of 5 000 LYD and a maximum of 30 000 LYD.	Minimum of 2 partners. One of them must be of Libyan nationality. The Libyan partner must hold at least 51% of the capital.
The office of representation 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.	A minimum of 2 partners, one of whom must be of Libyan nationality.
The foreign subsidiary The subsidiary must set aside a sum reserved for setup and operating that must be at least 150 000 LYD.	A minimum of 2 partners, one of whom must be of Libyan nationality.

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.

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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.

Minimum Wage: 150 LYD per month
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%

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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