No Result
View All Result
Monday, August 25, 2025
23 °c
Tripoli
24 ° Sat
24 ° Sun
  • Advertising
  • Contact
LibyaHerald
  • Home
  • Libya
  • Business
  • Opinion
  • Magazine
  • Advertising
  • Login
  • Register
SUBSCRIBE
  • Home
  • Libya
  • Business
  • Opinion
  • Magazine
  • Advertising
  • Login
  • Register
No Result
View All Result
LibyaHerald
No Result
View All Result
Home Business

“This resolution gives very good privileges to foreign partners and foreign companies”: Dr Mohammed Tumi

bySami Zaptia
May 24, 2012
Reading Time: 2 mins read
A A

Tripoli, 23 May:

Last week, the Libyan Ministry of Economy passed a new decree adjusting the areas of activities and the percentage . . .[restrict]that foreign investors could own in Libyan companies. Libya Herald invited Dr Mohammed Tumi, of Tumi Law Firm, to make some comments on this new decree. The following were his comments:

Resolution no. 103/2012, issued by the Minister of Economy, concerning the participation of foreigners in Joint Venture companies, Branches and Representative offices, from a legal point of view, gives very good privileges to foreign partners and foreign companies who wish to conduct business in Libya.

The privileges can be summarized in the following points:

  1. This resolution gives the right to local and foreign partners to establish Limited Liabilities companies with a capital LD 50,000.
  2. Article 3 clearly stipulates that the minimum participation is 35 percent and the maximum for a foreigner is 65 percent. On the other hand, for certain reasons, related to the nature of the work to be carried out, the Minister of Economy is authorised to give permission to the foreign partner to participate up to 80 percent. Moreover, the participation on the Board of Directors, has to be in accordance with the percentage of the share ownership.
  3. Article 8 regarding the opening of the Branch Office, has raised the capital for establishing the Branch to a minimum of LD 250,000.-
  4. Article 9 has enlarged and added more fields of participation for branches of foreign companies.

In general, this resolution is very well balanced from a business interest point of view. In other words, this resolution has opened the business doors for both Libyans and foreigners on very just and fair grounds and the conditions are less conservative. The capital required for all JV, BO and Rep Office, is quite acceptable for both local and foreign parties.

RELATED POSTS

Op-Ed: Libya’s Missing Link – Why Data is the Key to Reform While Preventing a Public Backlash

Libyan Italian Economic Forum sets 29 October as event date

This resolution will attract foreign companies to conduct business in very fair and just legal environment, and will increase newcomers in the coming future. By comparison, this new resolution is much better regulated than the previous one, because it lifted the restriction on the services to be rendered in the oil sector, by JV companies. The old Law required 100 shareholders of the Libyan company in order to be able to get into JV with a foreign company to provide and render the oil services. This is not valid anymore.

In conclusion, resolution 103/2012 after due revision, proves to be very well balanced, except the hereunder following reservations:

  1.  I highly recommend that foreigners should participate in the retail and wholesale trade;
  2. I also recommend that foreigners should participate by forming JVs with nationals in catering business;
  3. I recommend that also foreigners should participate in the form of JV in legal and financial audit services. Generally speaking, I would like to see foreign participation in the form of JV in the services sector, because we still need some experience in the above said activities.

We hope that we have highlighted the main points regarding the above resolution.

Dr Mohammed A. Tumi is Managing Partner at Tumi Law firm, one of the leading law firms in Libya. For full contact details kindly visit: www.tumilawfirm.com [/restrict]

Tags: branch officecompaniesdecreeeconomyforeign ownershipinvestment in LibyaJVlimited liability companyrepresentative officeshareholdingTumi Law Firm

Related Posts

Egyptian consortium to start implementing Third Ring Road project within days: HIB head Ajaj
Business

HIB agrees with Germany’s UWA to start geotechnical testing for Gharian wastewater treatment plant

August 22, 2025
No saviour for Libya except through constitutional based elections to end transitional periods: Grand Mufti
Business

Dar al-Ifta pronounces that all meat imported from non-Islamic states is not deemed ‘‘halal’’

August 21, 2025
Adopting Libya’s National Strategy for the Communications and Informatics Sector 2023-2027
Business

General Authority for Communications and Informatics reaches agreement with China’s Huawei to resume operations in Libya

August 21, 2025
CBL receives results from meetings with international banks
Business

CBL Governor Issa vows to end Libya’s liquidity crisis by 1 October

August 21, 2025
Libyan Railways Implementation Authority invites International Federation of Railways to participate in November workshop
Business

Libyan Railroads to issue consultancy tender for Tripoli rail project

August 21, 2025
NESR secures multiple production services contracts for over US$ 100 million in Algeria and Libya
Business

NESR secures multiple production services contracts for over US$ 100 million in Algeria and Libya

August 21, 2025
Next Post

The UN praises successful conclusion of voter registration and Benghazi vote

Mahmoudi extradition agreed, alternatively on hold: Tunisian Ministers disagree

Mahmoudi extradition agreed, alternatively on hold: Tunisian Ministers disagree

ADVERTISEMENT

Top Stories

  • Adopting Libya’s National Strategy for the Communications and Informatics Sector 2023-2027

    General Authority for Communications and Informatics suspends activities of China’s Huawei in Libya for violating national and international laws

    0 shares
    Share 0 Tweet 0
  • New Libyan artificial intelligence system ‘‘LIBIGPT’’ to be launched soon

    0 shares
    Share 0 Tweet 0
  • Lufthansa to act as consultant for proposed new Libyan state airliner

    0 shares
    Share 0 Tweet 0
  • NESR secures multiple production services contracts for over US$ 100 million in Algeria and Libya

    0 shares
    Share 0 Tweet 0
  • CBL Governor Issa vows to end Libya’s liquidity crisis by 1 October

    0 shares
    Share 0 Tweet 0
ADVERTISEMENT
LibyaHerald

The Libya Herald first appeared on 17 February 2012 – the first anniversary of the Libyan Revolution. Since then, it has become a favourite go-to source on news about Libya, for many in Libya and around the world, regularly attracting millions of hits.

Recent News

Aldabaiba broadly welcomes Tetteh’s new political Roadmap

18 defendants held in pretrial detention for attempting to smuggle 180,000 litres of fuel across Libya’s border

Sitemap

  • Why subscribe?
  • Terms & Conditions
  • FAQs
  • Copyright & Intellectual Property Rights
  • Subscribe now

Newsletters

    Be the first to know latest important news & events directly to your inbox.

    Sending ...

    By signing up, I agree to our TOS and Privacy Policy.

    © 2022 LibyaHerald - Powered by Sparx Solutions.

    Welcome Back!

    Login to your account below

    Forgotten Password? Sign Up

    Create New Account!

    Fill the forms below to register

    *By registering into our website, you agree to the Terms & Conditions and Privacy Policy.
    All fields are required. Log In

    Retrieve your password

    Please enter your username or email address to reset your password.

    Log In
    No Result
    View All Result
    • Login
    • Sign Up
    • Libya
    • Business
    • Advertising
    • About us
    • BusinessEye Magazine
    • Letters
    • Features
    • Why subscribe?
    • FAQs
    • Contact

    © 2022 LibyaHerald - Powered by Sparx Solutions.

    This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.