Sole Shareholder LLC in Lebanon

Sole Shareholder LLC in Lebanon

April 5, 2019

Written by Nasser Messaike

Sole Shareholder LLC in Lebanon

On March 29, 2019, the Lebanese legislator issued a new law number 126 amending the previous Lebanese commercial law and the law of obligations and contracts (the “New Law”).

The New Law deals with many topics related to merchants, commercial books, stocks, bankruptcy, corporations’ formalities, and other topics in this field, however, the New Law provides a very promising step in Lebanon where it defines the limited liability company as follows:

“A limited liability company is a commercial company which is established by one (1) or several shareholders whom bear the losses only according to their share contribution in the share capital.

In the case of one (1) shareholder, such shareholder shall be called the sole shareholder, and he shall exercise all the powers that are given to the general assembly”.

We understand from this clause that the New Law had amended the formalities of establishing a limited liability company in Lebanon, as prior to the New Law, establishing an LLC in Lebanon needed three (3) shareholders at least.

It is worth noting that in case of a limited liability company which is owned by a sole shareholder, such company cannot be the sole shareholder of another company.

The New Law has been published in the Lebanese official gazette on April 1, 2019 and shall come into force in Lebanon after three (3) months from the date it has been published.

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