General Issues Presentation 2011 [Compatibility Mode]

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: [email protected]

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

2

– 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

3

� Tax issues� Employments� Money transfer� Visa issues

Registering a branch of an

ConsultancyHouse




T: +218 21 335 1246/7

F:+218 21 335 1247



Registering a branch of an international company in Libya


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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Picture In

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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

ConsultancyHouse

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The second phase will not stop the company from signing contracts or start operating.

Tax issues

ConsultancyHouse




T: +218 21 335 1246/7

F:+218 21 335 1247



Tax issues


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




T: +218 21 335 1246/7

F:+218 21 335 1247



Employment issues


• 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




T: +218 21 335 1246/7

F:+218 21 335 1247



Money Transfer


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




T: +218 21 335 1246/7

F:+218 21 335 1247



Visa issues


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


57-58-59 Al-Fateh Tower


T: +218 21 335 1246/7

F:+218 21 335 1247


W: www.consultancy-

house.com

If you have any question, please do not hesitate to contact us…. Thanks

Documents

General Issues Presentation 2011 [Compatibility Mode]