Libya is an independent state with fast growing economy located in the Northern Africa. It is the fourth largest country in Africa.
If you are interested in setting up a company in Libya and opening a Libyan bank account, note that:
- Arabic is the official state language;
- The currency of the country is Libyan Dinar (LYD);
- Libyan population: 2 280 968 people;
- The country borders on: Egypt, Chad, Niger, Algeria and other countries;
- This jurisdiction has a functioning Libyan Stock Exchange;
- DTA agreements with 12 countries.
For more information, you can ask for individual advice of the subject matter expert on a company registration process in Libya and opening an account for a Libyan company from YB Case team.
Leading economic sectors
If you want to open your own business in Libya, please consider the following options:
- Setting up an agricultural company in Libya. Despite the small agricultural area, Libya accounts for 2-5% of the global production of wheat, barley, vegetables, olives, almonds, citrus fruits and dates;
- Registering a Libyan oil company. Libyan economy is based on the largest oil reserves in Africa. Under the brand name “Tamoil” Libya has its own network of oil refineries and gas stations in Germany, Italy and Switzerland;
- Opening a production company in Libya in the chemical, food and textile industries, furniture and construction materials spheres. Also, it will be profitable to register a cement plant, mobile services company, or transport company;
- Setting up a trade company in Libya for import operations (cars and other vehicles, iron and steel, food products);
- Registering a Libyan travel company.
To learn more, we recommend you requesting for qualified advice on a business organization process in Libya and selection a legal form of your firm.
Legal forms & tax treatment
If you are planning to set up a company in Libya and open a corporate account with a Libyan bank, then consider the following tax comparative table.
Minimum share capital
3.7 million USD (1.5 million USD, if there is a local partner in corporate structure)
730 000 USD
184 000 USD
Also, there is WHT on interest payments – 5%, and 0% for dividends and royalties.
* 4% jehad tax (plus to corporate tax).
Most entrepreneurs choose to register a LLC in Libya. It is the most easy-to-manage form.
How to open a business in Libya
In order to set up a Libyan company and open a corporate account with an African bank, you must meet the following requirements:
- To choose a unique name for your future company and specify a business entity type;
- To appoint two directors and shareholders (at least 1 should be a resident of Libya);
- To register a physical office in Libya;
- To pay a minimal share capital;
- To obtain a trade license in Libya.
Terms of incorporation are up to 3 months.
You can receive competent personal advice on a company registration procedure in Libya and account opening with a bank of Libya from YB Case specialists.
In addition, our professional team can provide you with assistance in obtaining a trade license in Libya and registering a physical office.