Libya’s Ministry of Economy has issued a new decree allowing foreign companies to enter joint ventures and open a representative office to study the Libyan market. It is aimed at reorganising and facilitating the process of foreign-local partnership.
The decree No. 103 of the year 2012 issued on May 13 is setting out the purposes, conditions and percentages for foreign individuals or companies to set up business in Libya.
The decree allows for both foreign individuals and companies to partner with Libyan individuals and Libyan companies according to their activities as registered in their countries of origin.
Similar to the previous regulations, foreign ownership is generally restricted to 65% of the share capital of a Libyan company although approval may be given by the Ministry of Economy to increase the foreign shareholding to 80% on a case by case basis.
The decree demands that foreign companies and individuals help in training the Libyan workforce through annual programmes of transferring the know-how of the businesses to Libya and use the available equipment, machinery and raw materials in the local market.
Foreign and local companies or individuals who are working in Libya as joint ventures are required to adopt annual training programmes that allow for the eventual replacement of foreign workforce with local workforce.
Foreign investors are allowed to invest in almost all the available economic sectors including the oil industry, construction, electricity, environment-related industries and services, computer services and IT, health-care and consultancy among others.
(Source: The Tripoli Post)
