OFFSHORE COMPANY INCORPORATION IN LEBANON
Offshore companies are one diversion of Joint Stock Companies. All shareholders and boards of directors can be foreigners.
The minimum partner numbers and capital requirement is the same as for joint stock companies but they can be denominated in foreign currency. The Offshore enjoys tax advantages and is subject to a flat yearly tax of one million Lebanese Pounds (667 USD) regardless of its turnover or profits.
Law 85/2018 allowed the incorporation of an offshore company by a single shareholder.
According to Article 7 of Law 19/2008, salaries and benefits paid to employees of offshore companies working abroad are exempted from the payroll tax. In this regard, the concerned companies are required to declare the salaries of all their employees, including those working abroad.
As for the chairman, he may be a non-Lebanese resident abroad and may operate without a permit. The company formation and registration take place in both, the Commercial Register and in a special register for offshore companies.
Offshore companies’ formation and registration occur in Lebanon, however, they operate only in the Lebanese free zone and/or outside the Lebanese territory. However, they can have their headquarters in Lebanon and hold bank accounts in Lebanese banks.
Their object is the following:
- Negotiation and conclusion of agreements concerning goods and products located outside the Lebanese territory or in the Lebanese Free Zone
- Offering studies and consultations for the benefit of foreign institutions,
- Using free zone facilities in order to stock imported goods for re-exportation,
- Buying or renting real estate in Lebanon to the extent they are necessary for the operation of the offshore company.
According to the last amendment The added activities permitted to the offshore companies are:
- The administration of companies and institutions outside Lebanon including the export of services, and software of any kind to these institutions.
- Operations of three-sided trade or multi-sided trade and therefore negotiating and drafting contracts, shipping goods, and reissuing bills for transactions out of Lebanon or in the Lebanese free zone including the facility to store the goods in the free zone in order to export them.
- Doing activities related to maritime shipping.
- Acquiring shares of stocks in foreign corporations, companies, or institutions and borrowing from these institutions in which the offshore company holds more than 20% of its capital
- Acquiring or benefiting from rights related to agencies or commercial representation to foreign or non-residing companies or institutions.
- Opening of branches and representative offices abroad.
- The construction, investments, and administration of economic projects except those prohibited by law.
- The creation of accounts and use of financial services to finance its activities whether from local institutions or non-residents.
- The lease or acquisition of offices or real estate in Lebanon in relation to the activities of the offshore company.
Contact us today to register your Offshore company in Lebanon.