Company Formation & Entity Setup in Lebanon

SARL and SAL incorporation, Commercial Registry filing, and post-formation compliance setup, including capital-contribution guidance appropriate to the current banking environment.

Lebanon Reviewed September 2026

Currency

LBP (Lebanese pound) — market rate ~LBP 89,600/USD (mid-2026); most contracts and pricing are effectively USD-denominated

Legal forms

SARL (limited liability) · SAL (joint stock)

Minimum share capital

SARL: LBP 5,000,000 (~$56 at mid-2026 market rate) · SAL: LBP 30,000,000 (~$335)

Registration body

Commercial Registry (Ministry of Justice), filed at the Court of First Instance of the relevant district (commonly Beirut); company incorporation also requires coordination with the Ministry of Economy and Trade

Formation timeline

~2–3 weeks total (name reservation 1–3 working days; registration itself 10–15 days); longer for an SAL given the 3-shareholder minimum and additional capital-deposit formalities

Corporate tax rate

17% flat

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How company formation works in Lebanon

Lebanon applies a flat 17% corporate income tax rate and an 11% standard VAT rate (a rise to 12% was approved by Cabinet in February 2026 but is not yet enacted), figures that read as unremarkable next to most jurisdictions in the region. The defining operational fact for any business in Lebanon is not the tax code but the currency: the Lebanese pound has lost more than 98% of its value since the pre-2019 official peg of LBP 1,507.5 per US dollar, trading at approximately LBP 89,600 per dollar in mid-2026, with the pre-crisis official peg long since replaced by market-driven pricing for virtually all transactions.

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Matched to your business objective

SARL (limited liability)

Liability

Limited to company assets

Min. capital

SARL: LBP 5,000,000 (~$56 at mid-2026 market rate) · SAL: LBP 30,000,000 (~$335)

The standard vehicle for an operating subsidiary of a foreign company — the default choice for most market-entry engagements in Lebanon.

SAL (joint stock)

Liability

Limited to company assets

Min. capital

SARL: LBP 5,000,000 (~$56 at mid-2026 market rate) · SAL: LBP 30,000,000 (~$335)

Used for larger operations, more formal governance needs, or entities seeking to raise capital publicly.

Branch

Liability

None separate — the foreign parent company bears full liability

Min. capital

None — no separate capital requirement

Useful for testing the Lebanon market before committing to a subsidiary, or for keeping a single legal entity across borders. Creates a taxable presence — profits are generally taxed in Lebanon.

Representative office

Liability

N/A — not a registered legal entity in most cases

Min. capital

None

For market research and liaison activity only — cannot sign contracts, invoice, or trade locally in most jurisdictions.

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What it takes to register, and how long

Formation runs through the Commercial Registry (Ministry of Justice), filed at the Court of First Instance of the relevant district (commonly Beirut); company incorporation also requires coordination with the Ministry of Economy and Trade, typically taking ~2–3 weeks total (name reservation 1–3 working days; registration itself 10–15 days); longer for an SAL given the 3-shareholder minimum and additional capital-deposit formalities.

Nominal capital, real value — — the SARL minimum capital (LBP 5,000,000) and the sole-proprietorship audit trigger (LBP 750 million turnover) were fixed before the 2019 collapse and now equate to roughly $56 and $8,370 respectively at market rates, catching far more businesses than either threshold originally intended
Dual-currency bookkeeping — — the Lebanese Chart of Accounts (Plan Comptable Général Libanais) must be maintained in both LBP and foreign currency simultaneously, with no single official rate governing the conversion
"Fresh dollar" banking segregation — — USD held in accounts opened after the 2019 crisis clears and transfers differently from pre-crisis frozen deposits, a distinction that affects how salaries, supplier payments and capital contributions can practically move
NSSF ceilings under continual revision — — contribution ceilings were raised again on 1 May 2026 (family allowances ceiling to LBP 28,000,000/month, sickness/maternity to LBP 140,000,000/month), a recurring patch rather than a settled base

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Frequently asked questions

Why does Lebanon's minimum share capital look so low?

The SARL minimum of LBP 5,000,000 was set at a time when it equated to roughly $3,300 at the official pre-2019 peg of LBP 1,507.5 per dollar. Since the lira's collapse, that same nominal figure is worth approximately $56 at the mid-2026 market rate of roughly LBP 89,600 per dollar — the law was never amended, only the currency changed.

Does the statutory audit requirement apply to small companies?

Yes, for SARL and SAL entities it applies regardless of size — Ministerial Decree No. 8089/1996 requires an LACPA-registered CPA audit for every SARL, SAL, holding, offshore company and foreign branch. Sole proprietorships and partnerships are only required to audit above 25 employees or LBP 750 million turnover, a threshold now equal to roughly $8,370 at market rates.

What are "fresh dollars" and why do they matter for running a business?

"Fresh dollars" are US dollars held in bank accounts opened or funded after the 2019 banking crisis, which clear and transfer under different rules than pre-crisis dollar deposits, most of which remain effectively frozen. This distinction shapes how a company can practically pay salaries, settle supplier invoices, or move capital contributions through the banking system.

How long does it take to register a company in Lebanon?

Total registration typically takes around 2–3 weeks: name reservation with the Commercial Registry takes 1–3 working days, followed by roughly 10–15 days for registration itself. An SAL generally takes longer than a SARL given its three-shareholder minimum and additional capital-deposit formalities.

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Every Lebanese compliance figure quoted in LBP needs an accompanying market-rate conversion before a client can act on it — treating lira figures as fixed reference points, as one might in a stable-currency jurisdiction, misstates the real threshold by orders of magnitude within a single fiscal year.

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