LBOperating in Lebanon
Payroll, accounting, employment, immigration, entity setup, and corporate compliance managed locally through a single international coordination model.
Request a country assessmentThe regulatory landscape
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.
Because so much of Lebanese company and tax law is drafted in fixed LBP amounts — minimum share capital, statutory audit turnover triggers, social security contribution ceilings — the collapse has silently rewritten what those figures mean in practice. A SARL's LBP 5,000,000 minimum capital was worth roughly $3,300 in 2019 and is worth about $56 today; the LBP 750 million turnover threshold that triggers mandatory audit for sole proprietorships and partnerships was a meaningful screen in 2019 and equates to roughly $8,370 today, catching businesses the rule never intended to reach. Bookkeeping itself reflects the same duality: the Lebanese Chart of Accounts must be maintained in both LBP and foreign currency simultaneously, and banks distinguish "fresh dollars" held in accounts opened after the crisis from pre-crisis frozen deposits, a distinction that affects how salaries, supplier payments and capital contributions can practically move.
Official language
Arabic (French and English widely used in business)
Legal forms
SARL (limited liability) · SAL (joint stock)
Corporate tax rate
17% flat
Currency
LBP (Lebanese pound) — market rate ~LBP 89,600/USD (mid-2026); most contracts and pricing are effectively USD-denominated
Employer social security (NSSF)
~23.5% combined: 11% sickness & maternity (ceiling LBP 140M/month) + 6% family allowances (ceiling LBP 28M/month) + 8.5% end-of-service indemnity (no ceiling)
Dividend / movable capital tax
10% withholding
Minimum share capital
SARL: LBP 5,000,000 (~$56 at mid-2026 market rate) · SAL: LBP 30,000,000 (~$335)
VAT
11% standard (proposed rise to 12% pending parliamentary enactment); exports and international transport zero-rated; financial services exempt
Integrated services in Lebanon
Each service is delivered as part of an integrated service model, coordinated across functions under a single point of accountability. Clients engage one team, not a coordination layer between independent providers.
Accounting & Tax Compliance
Dual-currency bookkeeping under the Lebanese Chart of Accounts (Plan Comptable Général Libanais), LACPA-audited annual statements, and VAT/CIT filings tracked against both LBP nominal thresholds and market exchange rates.
Explore Accounting & Tax CompliancePayroll & Workforce Management
Full-cycle Lebanese payroll including NSSF contributions across all three branches, minimum wage and transport allowance compliance, and salary structuring across the LBP/USD dual-currency environment.
Explore Payroll & Workforce ManagementCompany Formation & Entity Setup
SARL and SAL incorporation, Commercial Registry filing, and post-formation compliance setup, including capital-contribution guidance appropriate to the current banking environment.
Explore Company Formation & Entity SetupWorkforce Mobility
Work permit and residence permit coordination through the Ministry of Labour and General Security for foreign managers and key staff.
Explore Workforce MobilityClient profiles in Lebanon
HR & Employment Advisory
Multinationals maintaining or restructuring a Lebanese legal entity through the ongoing currency crisis
Company Formation & Entity Setup
Companies entering Lebanon for the first time, requiring entity setup and dual-currency compliance infrastructure
Workforce Mobility
Businesses whose LBP-denominated turnover has crossed the statutory audit threshold without any corresponding change in real activity
Payroll & Workforce Management
Companies already operating in Lebanon consolidating fragmented accounting and payroll providers under a single governance layer
At the center of your HR operations
What clients say about our services in Lebanon
We assumed the audit threshold in the law was still a meaningful filter, the way it would be in any stable-currency market. Once we converted the LBP 750 million figure to dollars, we realised it was catching businesses a fraction of our size. Now every LBP-denominated rule gets a market-rate conversion before we treat it as a real threshold.
Finance Director, Regional Distribution Group — Lebanese OperationsInsights on Lebanon
Selected articles on regulatory developments and operational frameworks relevant to companies in Lebanon.
Minimum capital, audit triggers and contribution ceilings were set before 2019 and are still stated in lira. Reading them at current exchange rates gives a very different picture.
Read articleLebanese statutory accounts are maintained in lira and in foreign currency at the same time. How the two sets are kept consistent in practice.
Read articleThe banking distinction between pre-2019 deposits and post-2019 transfers determines what can actually be paid out. What it means for salary and supplier payment flows.
Read articleFrequently asked questions
Questions raised most often by companies entering or operating in Lebanon.
What services does HTLC Network provide in Lebanon?
HTLC Network provides Payroll & Workforce Management, Accounting & Tax Compliance, HR & Employment Advisory, Company Formation & Entity Setup, and Workforce Mobility services in Lebanon through a coordinated international service model.
Can international companies hire employees in Lebanon?
Yes. Foreign businesses can employ personnel in Lebanon, subject to payroll, employment law, tax and registration obligations.
What should employers know about payroll in Lebanon?
An employer generally manages salary payments, tax withholding obligations, social security contributions and employment compliance reporting.
Is a local legal entity required to employ people in Lebanon?
The answer depends on the commercial structure and the workforce model being used. Tax and regulatory implications should be evaluated before hiring.
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.
Talk to a Lebanon expert
For companies structuring a market entry or consolidating an existing Lebanese operation under a single governance model.