Post on 21-Apr-2015
Work in Libya
ConsultancyHouse
Preparation . Registration . Consultation . Training . Advisory
57-58-59 Al-Fatah Tower
First floor, Tripoli, Libya
T: +218 21 335 1246/7
F:+218 21 335 1247
E: info@consultancy-house.com
W: www.consultancy-house.com
Work in Libya
Process and requirements
Abdalla Hamed– PhD, MSc IS, MBA, BSc accounting– Visiting lecturer at University of Wales
Cardiff, UK– General Manager of Consultancy House
About the SpeakerConsultancyHouse
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– General Manager of Consultancy House
Contact detailsTel: +218 (0) 21 335 1246
+218 (0) 21 335 1246 Mobile: +218 (0) 91 381 2004Email: Abdalla @consultancy-house.comPost: 57-58-59 First floorAl-Fatah Tower, Tripoli, Libya
Introduction
This presentation will cover� Registration of an international company in Libya
� Branch of international company� Joint venture� Representative office
ConsultancyHouse
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� Tax issues� Employments� Money transfer� Visa issues
Registering a branch of an
ConsultancyHouse
Preparation . Registration . Consultation . Training . Advisory
57-58-59 Al-Fatah Tower
First floor, Tripoli, Libya
T: +218 21 335 1246/7
F:+218 21 335 1247
E: info@consultancy-house.com
W: www.consultancy-house.com
Registering a branch of an international company in Libya
Process and requirements
Operating in LibyaConsultancyHouse
International company
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Establish a branch
Joint venture
Representativeoffice
100% international
Max 65% international
100% international
Need permission to operate. Or
Companies services allowed for branches
Minimum share is 35% for Libyan.
Companies have to provide all required paper for registration
Representative office is only for after sale services, not allowed to operate, apply or sign any deal in the country
Operating in LibyaConsultancyHouse
Description Inter-Branch
Joint venture
Repoffice
Need Libyan partner No Yes No
Operate in Libya Yes Yes No
Considered as a Libyan company No Yes No
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Applying for new jobs and contracts No Yes No
Have the priority for new contract No Yes No
Can have number of local and international employees Yes Yes No
Manager or Deputy branch manager has to be Libyan, the other have to have the nationality of the company
Yes Yes Yes
Does not need a permission to sign a contract No Yes N/A
Can gain a licence for long period No Yes No
Petroleum
1. Exploration of oil 2. Examination and analysis of data along with submission of geological and geo-chemical studies and the like .3. Drilling of oil wells 4. Construction of tanks and stations of transport and pumping gas and oil pipelines as well as its maintenance
Surveying and Planning
1. Aerial survey and mapping in different methods and for different purposes.2. Submission of engineering consultations necessary for planning of cities and urbane areas. Consultancy and technical
studies
• Preparing studies in the field Environmental Protection
Computer
Installation of automatic control system as well as industrialization, preparing and maintenance of its programs.
Permitted branchesConsultancyHouse
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pipelines as well as its maintenance and necessary protection system.5. Construction of floating marine platforms for the exploration of gas and oil.6. Assembly and maintenance of oil refineries and petrochemical plants.7. Rendering of marine transport services as well as materials, equipments and machinery relating to marine drilling. 8. Removal of mines from oil fields. 9. Inspection of oil shipments.
• Preparing studies in the field of information technology, wireless telecommunications and control systems along with rendering of consultations in this connection.2. Supervising the execution of the aforesaid consultations.3. Conducting the technical and financial evaluation of the big projects for the purpose of limiting the value of its shares in the financial market.4. Designing of big projects of advanced technology concerning construction and performance.
1. Installation of environmental protection plants.2. Treatment of waste and installing of recycling plants.3. Treatment of environmental contamination and installation of relevant equipment.4. Treatment of seawater intrusion to under ground reservoirs, and maintenance of water and wastewater networks and pumping stations.
Health
Installation, maintenance and collaboration of medical equipment
Operating in Libya (2)ConsultancyHouse
Permitted forInternational company
Constructions
Services
Petroleum exploration
Consultation
Non-Permitted forInternational company
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Services
trade
Production
others
Consultation
environment
Health equipments
Exemption from partner
Any international company in order to operate in Libya have to fit with in one of those categories. Permission can be gain for exemption of Libyan partner
Process in details (New)
Company
1.1Opening account and
transfer capital 1.3 Submitting all legal documents, translated 1.4 Providing the
Second phase:• Applying for license• Tax file• Social security• Chamber of commerce• Labor office• Immigration• etc…
1.12 Start the second phaseAuthority
Request a process
Respond to request
Provide documents and information
ConsultancyHouse
1.6Activating the account
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Economic ministry
Bank1.2 letter confirming the arrival of capital
documents, translated and legalized
• Submitting the bank letter confirming capital
arrival
1.5 Permission to activate the account
1.4 Providing the incorporation certificate ate
Bank process
DescriptionOriginal Certified
/non certified copy
Legalized by the embassy and the translated
Letter from the company to open the bank account Yes Yes
Memorandum of associations and articles Yes Certified Yes
ConsultancyHouse
For opening a bank account, the company has to provide information listed in the table below and fill bank’s form.
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Certificate of incorporation Yes Certifed Yes
Committee board meetings minute Yes Certified Yes
Filling forms for opening a temporary account Yes
Receiving copy of SWIFT to check the arrival of money transfer
Non certified
Request for a confirmation of money arrival in the company’s account
Yes
Provide the bank of activating the account from the ministry of Economic
Yes
Process in details (New)
Company
1.1Opening account and
transfer capital 1.3 Submitting all legal documents, translated 1.4 Providing the
Second phase:• Applying for license• Tax file• Social security• Chamber of commerce• Labor office• Immigration• etc…
1.12 Start the second phaseAuthority
Request a process
Respond to request
Provide documents and information
ConsultancyHouse
1.6Activating the account
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Economic ministry
Bank1.2 letter confirming the arrival of capital
documents, translated and legalized
• Submitting the bank letter confirming capital
arrival
1.5 Permission to activate the account
1.4 Providing the incorporation certificate ate
Ministry of economy
Description
Original Legalized by the embassy and the translated
Certified copy
Translated into Arabic
Resolution:
1. establish a branch (name)
2. intended field of business
3. intention to transfer 150k
4. name of branch manager and deputy branch manager
Yes Yes Yes Yes
ConsultancyHouse
Required documents listed below has to be delivered to the ministry of economy by the authorised person
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manager
5. intended address of the company
6. undertaking to prepare annual budget and financial statement
7. pledge of non-interference in Libyan political affairs
8. authorization to agents managing incorporations
Memorandum and article of association Yes Yes Yes Yes
Certificate of incorporation Yes Yes Yes Yes
Client reference letter –Four (project description, date, location, project value)
Yes Yes Yes Yes
1 page company description and background
Certificate of deposit from local bank
Appointment of registration responsible Yes Yes Yes Yes
Great social Libyan Arab Jamahiriya
Legal register office/…………….. Date / / 2009Address……………………………Telephone:…………………………
Dear Bank of ………………………………….Greetings
Bank process (request transfer arrival)Consultancy
House
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By the time we appreciate your afford for developing the national economy and for helping opening company …………………… branch.
Therefore, we wish from you opening a under-establishment current account for the above mentioned company for debiting the company’s capital requested to establish the branch
Please be aware that Mr. ……………… ID number …………. Is authorised to complete the registration procedures, handling and requesting documents related to the above mentioned issue.
Thank you for help in advanceSigned and stamped
Picture
Great social Libyan Arab JamahiriyaMinistry of economy and commerce
Department of Companies and commercial registrationForm of registering foreign company’s branch
Form (T.SH.1)
Dear/ General Manager of Companies and commercial registration department
Greetings
We………………….. Registration number ………..Please take you procedure for giving the permission of opening a branch for the
company……………… nationality…………….. In the field of …………..
Attached the below documents:1. Authorisation from the company to register the branch2. Board committee decision for opening a branch in Libya including
the followingA. Specifying the field of services to be provided. However, these
Ministry of Economy (registering a company)Consultancy
House
Picture In
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A. Specifying the field of services to be provided. However, these services has to be from the same services the mother company does provide and from the services allowed to be operated in Libya
B. Capital of the branch (not less then 150,000 L.YDC. Name of the branch manager. The branch manager has to have the
nationality of the mother company, the nationality of one of the company owners or Libyan.
D. Libya’s branch address in Libya3. Certified copy of memorandum of associations and article4. New original incorporation certificate for the mother company5. Acknowledgment from the mother company to prepare financial
statement6. Acknowledgment of the mother company not to interfere with
political issues related to Libya7. Reference of the company previous experience in the field8. Acknowledgment from the company not paying any fees expect for
the office responsible for finishing the registrations9. Acknowledgment form the register to follow the price issued by the
ministry of economy for registration of International companies
Name of employee receive the documents:………………………….Signature:………………………Date:…………………………….
The authorised person:………………..ID number:………………………………..Signature:…………………………………
InArabic
Company ………………Address: City:……….Street:………….
Capital:…………………….Board committee meeting
Date: / / 2009
Today, The day of ……, at the time of …….hours. Date:…/…./2009. in the company office in the city of ……….., street, ………..the committee board of…<<company Name>>.. For decision and decision of the following:
1. Opening a branch in Libya and specifying authorities.
The committee board decide the following:1. Establish a branch of << company name >> in the great socialist
Libya in the city of << Libyan city name>> or any other city that the Libyan authority may choose. The branch will be establishing according to the legislations and regulation of the ministry of Libyan economy and commerce for issuing licence for international companies, and the legislations and regulation of the Libyan commercial law. The branch will work in the field of <<specify the
Ministry of Economy (Decision of board committee)Consultancy
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companies, and the legislations and regulation of the Libyan commercial law. The branch will work in the field of <<specify the field>>
2. The capital of the branch is one hundred and fifty thousands Libyan dinar or equalevant of any other currency to be transferred to one of the bank operating in Libya after opening a current account in that particular bank.
3. To appoint that Mr. ……… Nationality ……….. Passport number ……..to be the branch manager and the official representative
4. To appoint that, Mr……….. Nationality…………. Passport number……….. To be the branch deputy manager in Libya
5. To authorise Mr…………. ID number ………..to deal with all registrations and establishment procedures for opening the proposed branch in Libya. This authority includes submitting and receiving documentations for the registrations purpose.
6. The company’s board acknowledge that the company shall prepare and submit a financial statement, profit and loss account for its new branch.
7. The company’s board acknowledge that, the company shall follow all local regulations and legislation and will not interfere with any political activities of Libya
8. All responsible department should be aware of this decision and put it into practice.
The meeting finished on the time of …….. Hours
Signature of the Chairman and stamp with the company stamp
InArabic
Registration… next step
Once the above process finished. The company have to start the second phase process which include registration in other authorities and applying for operational licence.
The second phase will not stop the company from signing
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The second phase will not stop the company from signing contracts or start operating.
Tax issues
ConsultancyHouse
Preparation . Registration . Consultation . Training . Advisory
57-58-59 Al-Fatah Tower
First floor, Tripoli, Libya
T: +218 21 335 1246/7
F:+218 21 335 1247
E: info@consultancy-house.com
W: www.consultancy-house.com
Tax issues
Process and requirements
In order for companies to open a tax file, companies have to provide the following:
1. The constitution of the Mother Company (translated into Arabic Language and legalized by the Libyan Bureau abroad.
2. The certificate of the Chamber of Commerce in Libya.3. Commercial Register and the resolution (in Libya)4. A power of attorney in the name of the branch manager (translated and
Opening a tax fileConsultancyHouse
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4. A power of attorney in the name of the branch manager (translated and legalized )
5. Photocopy of the passports of the branch manager and his deputy.6. Filling form No. (1) Taxes warrant to open tax file for the company at Tax
Department.
Three issues within taxations:- Contract and sub-contract stamps- Income tax- salaries
Legalizing contractsConsultancyHouse
Tax authority
1% for signing the
contact
1% for signing the
contact
1% for signing the
contact
0.1% for signing the sub-contact
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Client Libyan
International company
Client Other Int’ company
Sub-Contracting
Contract signed between both parties
Contract signed between both parties
Sub-Contract signed between both parties
contactcontact
0.1% for signing the sub-contact
Notice:- 1% for the main contract to be paid by either of the parties-0.1% of the sub-contract to be paid by either of the parties-0.5 duty stamp for every payment
Incorporation taxConsultancyHouse
Description
Total income
Payable tax (estimated by the tax office examiners)
Gihad (4%)
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Gihad (4%)
For companies: 20% of the estimated profit
Nationality
Marriage state Single 100
Married 150
Married with children 200
Social security
Company insurance 11.5%
Salary taxConsultancyHouse
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Company insurance 11.5%
Employee insurance 3.75%
Taxation
Gihad 3%
Tadamon 1%
First part (1000) 5%
Send part (1000+) 10%
Stamp 0.5%
Employment issues
ConsultancyHouse
Preparation . Registration . Consultation . Training . Advisory
57-58-59 Al-Fatah Tower
First floor, Tripoli, Libya
T: +218 21 335 1246/7
F:+218 21 335 1247
E: info@consultancy-house.com
W: www.consultancy-house.com
Employment issues
Process and requirements
• Companies can employee Libyan and internationals, how ever, contract has to be signed, considering the following:
– The contract has to be in Arabic (other language can be added
– The contract can be for a specified period (usually 12 months), however, open contracts are acceptable by law.
IntroductionConsultancyHouse
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law.– The contract should have 1. Name and address of employer.2. Name of the employee, qualifications, nationality, address.3. Nature and type of work subject matter of contracting.4. Date of starting work.5. Period of contract.6. Pay agreed upon, way and time of payment, as well as other
advantages in cash or kind.
IntroductionConsultancyHouse
Working
Sunday to ThursdayWorking days
meals and rest are not calculated
No more then 8 hoursTime per day
No more then 48 hoursTime per week
No more then 3 hours a dayOvertime allowance
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No more then 3 hours a dayOvertime allowance
Leaves
45 days who are over 50 or work for over 15 years
No less then 30 daysAnnual leave
3 monthsMotherhood leaves
45 days, onceHaj
Can extended with annual leave or unpaid leave
Women (40 Days)Men (10 Days)
Death
Intl’ employmentsConsultancyHouse
HealthEducation
Specialists and consultants.Members of the teaching staffs Master, PhD (specialized science)
Technicians for the maintenance of equipment of medical examination and analysis
Technical trainers, Holders of applied qualifications, and different technical specializations
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analysisspecializations
NursesConsultants and researchers
ConstructionOil
Experts in construction and industrial maintenance,
Technicians
Engineers Engineers
specialists
Intl’ employments…2ConsultancyHouse
Others
List of the authorized work is available in request
Communication and IT
Aircraft and airport
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Aircraft and airport
Cook and bakers
Agricultural
Others
Money Transfer
ConsultancyHouse
Preparation . Registration . Consultation . Training . Advisory
57-58-59 Al-Fatah Tower
First floor, Tripoli, Libya
T: +218 21 335 1246/7
F:+218 21 335 1247
E: info@consultancy-house.com
W: www.consultancy-house.com
Money Transfer
Process and requirements
Money transfer from and into Libya is allowed for companies and individuals.
Individual can transfer a maximum of 1000 L.Y.D per transactionAnd no more then 10,000 per year
Companies can transfer the agreeable percentages on the
Money TransferConsultancyHouse
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Companies can transfer the agreeable percentages on the contract. Percentages are varies (some time have reached 70%).
There is no restriction on receiving money, however, Money laundry investigations are in place.
Money transfer ConsultancyHouse
BankBank
From overseas
1.1 Transfer to the company’s
1.2No restriction of
From Libya
2.1 Usually the
transferable amount
stated in the
2.2 Any amount can
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CompanyCompany
the company’s local bank
account takes up to 2 weeks
restriction of transferring
back.
stated in the contract
amount can be
transferred
2.3 any amount received
from outside
Western union :: MoneyGram :: Others
Visa issues
ConsultancyHouse
Preparation . Registration . Consultation . Training . Advisory
57-58-59 Al-Fatah Tower
First floor, Tripoli, Libya
T: +218 21 335 1246/7
F:+218 21 335 1247
E: info@consultancy-house.com
W: www.consultancy-house.com
Visa issues
Process and requirements
Entering Libya for most nationalities required a visa. Visa for Libya it may be different then other countries.
There are two type of Visa covered today- Visa for work
Visa for work includes managers deputy manager, admin workers and labour
VISA ProcessConsultancyHouse
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labour
- Visa for visitVisa for visit can be touristic or business visa, this presentation cover
the business visa for businessmen/women
VISA process ConsultancyHouse
Inviterworker
Visa for visit
1.1Request a
Visa for workers
2.1 send his passport
Libyan embassy
1.3 Send telex with confirmation
2.5 Filling visa application, Paying X amount, Collecting visa
Giv
e co
py o
f the
tele
x w
ith c
onfir
mat
ion
2.3 Send telex with
confirmation
2.5 Filling visa application, Paying X amount, Collecting visa
2.4Give copy of the telex with confirmation
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companycompany
1.1Request a visa + personal
details added
1.2company provide letter of invitation and pays x amount for visa
passport copy and
information
Immigration & passport authority
confirmation
1.4Give copy of the telex with confirmation
1.4G
ive
copy
of t
he te
lex
with
con
firm
atio
n
2.2company provide letter of invitation and pays x
amount for visa
confirmationconfirmation
1.X : for business2.X: for work
VISA processConsultancyHouse
WorkBusinessDetails
YesYesFull name
YesYesDate of Birth
YesYesNationality
YesYesPassport number
YesYesPassport issue place
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YesYesPassport issue place
YesYesPassport expiry date
YesYesLong of stay
YesYesPurpose of visit
YesNoContract for work
YesNoHealth certificate
Place of the Libyan embassy convenient to the applicant
Visa application usually takes between one to two weeksAirport visa is no longer available
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ConsultancyHouse
Preparation . Registration . Consultation . Training . Advisory
57-58-59 Al-Fateh Tower
First floor, Tripoli, Libya
T: +218 21 335 1246/7
F:+218 21 335 1247
E: info@consultancy-house.com
W: www.consultancy-
house.com
If you have any question, please do not hesitate to contact us…. Thanks