Branch of Foreign Company

While the new Libyan government authorities are continuing to build new institutions and policies, there is no doubt that foreign investment will be crucial to Libya's future and a local presence will give the credibility and capacity to fully benefit from Libya's resurgence.

Consultancy House has the experience, up-to-the-minute knowledge and scale to recommend the optimal corporate vehicle and guide its registration through the formal and behind-the-scenes steps and provide you with a strong foundation for Libyan expansion.

We will update this site with the new registration procedures as they evolve.

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(Previous requirements)

There are requirements for international companies in order to be able to establish and operate in Libya. These processes are different from anywhere else in the world. For example, in UK all paperwork been done in one organization (Company House) here in Libya, the process is more complicated and involve number of authorities and organizations.

On 14th of November 2006 GPC has issued decision 443/2006 that introduced some fundamental issues into the structures of business vehicles of foreign companies doing business in Libya .

The Decision was unclear in various aspects. The un-clarity of the decision prompted GPCETI to issue a circulation on November 30th, 2006. The fundamentals of the new decision can be summarized as follows:

The Libyan government introduced a fundamental change to the acceptable structures of business vehicles of foreign companies operating in Libya.
As a general rule foreign contractors are no longer required nor permitted to establish or maintain company branches in Libya except for branches with existing contracts signed prior to 14th November 2006 until completion thereof.
by special permission at the discretion of GPC in consideration of the nature of the relevant project. Foreign contractors who wish to establish or maintain business presence are required to establish joint venture companies with a specialized local entity.
All activities that may be performed by foreign companies in Libya (listed in GPC decision 13/2005) are within the scope of the application of the above.
Te required joint venture companies are a special type of Libyan companies where foreign ownership is allowed up to a maximum of 65%. of its share capital.
The philosophy behind these new rules is to involve Libyan effective participation in the foreign contracting works in Libya.
Implementation of the new rules by foreign contractors entails:

Companies wishing to do business in Libya have to go through establishing joint companies unless otherwise exempted.
Application for establishment of branches is no longer feasible expect in connection with specific project pre approved by GPC.
Companies with existing branches need to restructure as in (a) expect if they have current contracts or special permission from GPC and only up to the completion of the relevant projects.