Starting a business in Libya: foreigner's guide (2026)

Standard joint ventures cap foreign ownership at 49%, with the Libyan partner retaining at least 51%. Under Law No. 9 of 2010, a foreigner may hold 100% if the investment exceeds LYD 5 million (≈ USD 900,000 at the post-April-2025 rate of 5.56 LYD/USD), reduced to LYD 2 million if a Libyan partner holds ≥50%. Foreign-company branches may be 100% foreign-owned but are confined to 11 designated activity categories under Decree No. 207/2012.

A foreign branch must wire-transfer seed capital of at least LYD 250,000 (≈ USD 45,000) from the parent company's overseas account into a Libyan commercial bank before registration can proceed. A joint venture requires minimum capital of LYD 1,000,000 (≈ USD 180,000), with one-third deposited upfront.

The process requires: (1) name reservation with the Commercial Registrar; (2) drafting and notarising Articles of Association; (3) depositing share capital and obtaining a bank certificate; (4) filing with the Commercial Registry at the Ministry of Economy and Trade; (5) obtaining a tax registration number from the Libyan Tax Authority; (6) registering with the Chamber of Commerce and obtaining a municipal business licence. Foreign branches additionally require Ministry of Economy approval and, for qualifying investments, a PIB/GAIPPA investment licence. End-to-end timeline is typically 6–10 weeks for a foreign branch once all legalised documents are received.

General commercial trading, retail, and commercial agency activities are closed to foreign branches; only 11 categories (including large construction, civil engineering, oil-services support, and power/water infrastructure) are permitted under Decree 207/2012. Oil and gas exploration and extraction remain separately restricted and are not accessible via the standard Investment Law route.

At least 75% of any branch or joint-venture workforce must be Libyan nationals. Companies are also expected to train a minimum of 20% of their Libyan staff annually, and either the Branch Manager or Deputy Branch Manager must be a Libyan national.

The US State Department's 2025 Investment Climate Statement notes Libya remains politically divided between rival governments with limited rule of law, a track record of non-payment on government contracts, and restricted US Embassy services. The Central Bank of Libya devalued the dinar by 13% in April 2025 (new official rate: 5.56 LYD/USD), adding currency risk. Law No. 9 of 2010 does provide a five-year tax and customs-duty exemption and profit-repatriation rights for qualifying investments.