LIMITED LIABILITY COMPANY
A Limited Liability Company, also known as LLC, is governed by Decree-Law No. 35 of August 5, 1967 and is commonly referred to in Lebanon as S.A.R.L (this is the French equivalent of L.L.C).
An S.A.R.L is founded by at least three partners and this number of partners can go from 1 up to 20.
An LLC minimum capital is set at five million Lebanese Pounds (approximately USD 3,333), noting that contributions may be in-kind or in-cash.
Since the company is of a limited liability, the partners are only liable to the amount of their contribution or parts to the company.
Partners in an LLC are not considered to be merchants and hence are not subject to the provisions applicable to merchants including the provisions of the Lebanese Code of Commerce.
Management of an LLC is given to one or many managers.
The manager can be a partner.The company’s denomination is always followed by the abbreviation “LLC”.
Limited Liability Companies are subject to the following taxes:
o 17% tax on corporate profit.
To be noted that there are no restrictions on foreign participation in limited liability companies except for certain sectors and activities. The company must necessarily appoint a lawyer with yearly retainer fees.