Guide to Doing Business in Lebanon

Submitted by: Moghaizel Law Offices http://www.mlof.com

(Updated to February 24, 2010)

I. THE COUNTRY AT A GLANCE A. What languages are spoken?

Arabic99%(officiallanguage) English50% French45% Armenian5% B. What is the exchange rate for the U.S. dollar, the Euro? 1US$=1,507LebanesePounds(February2010) 1Euro=2,053.75375LebanesePounds(February2010)
C. Describe your countrys geography, proximity to other countries and climate. LebanonisacountryinWesternAsia,ontheeasternshoreoftheMediterraneanSea,which liesbetween33and34.40Northlatitudeand35and36.40Eastlongitude.Itisborderedon theNorthandEastbySyria,ontheSouthbyIsrael,andontheWestbytheMediterranean Sea,withatotalboundarylengthof679kmofwhich225kmiscoastline.Thehighestpeakis QornetAlSaouda(3,083meters).ThefourseasonsareveryclearinLebanon,butinaverage thetemperatureisaround17.728.7Celsius. Otherneighboringcountries:Jordan,UAE,SaudiArabia,Iraq,KuwaitandIran. Lebanonsgeographiclocation,topographyandclimateareundoubtedlythecountrysmain features. D. Are there cultural influences or prohibitions on the way business is conducted? E. Are there religious influences or prohibitions on the way business is conducted?

Lebanon has always followed a liberal economic policy. Governmental regulations and interventionhavebeenminimal.Thepubliceconomicpolicyinvolvesmerelytheapplication of axioms derived from the economics of private or free enterprise. Therefore, there are neitherculturalnorreligiousinfluencesnorprohibitionsonthewaybusinessisconducted.

F. Explain your countrys infrastructure. Be sure to explain which cities have airports, railroad systems, ports, public transportation.

Reorganization of the transport sector is considered to be a priority due to its social, economic,urbanandenvironmentaldimensions.Theoperationisstillfarfromcomplete.A largenumberofprojectsarestillinprogress: 1.Roadtransport: Theroadtransportationsectorstillsuffersfromseriousstructuraldifficulties.Thenetworkin Lebanon includes about 6,360 kilometers of roads. It is organized around three main axes fromthecapital: a BeirutTripoli,SouthNorth. b BeirutDamascus,NorthEast. c BeirutTyre,NorthSouth. Severalprojectstodeveloptheroadsnetworkhavebeenstartedandarebeingmonitoredby the relevant governmental organizations such as the Council for Development and Reconstruction(CDR). Publictransports:Publictransportsareprovidedbythepublicsectoraswellasby privatecompanies.Theservicetaxinetworkandprivatebusesservealllocalities withinlargetownsaswellasvarioustownswithinthecountry. Railway transportation: A rudimentary railway network briefly operated in Lebanon. It grounded to a half when the war started. It is currently non operational. Theoretically, railway lines in Lebanon covered a network of 428 kilometersspreadon3axes: i. Acoastalrailway,224kilometersfromNakouraintheSouthtoAkkarin theNorth. ii. A line of 102 kilometers passing through the North of Bekaa meeting thecoastallineatHoms,Syria. iii. Aninternallineof102kilometerslinkingBeiruttoDamascus. Aprojecttorehabilitatetherailwaynetworkhasbeenconsideredbutnotyetimplemented.
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2.Marinetransport: The port infrastructure in Lebanon is concentrated primarily in the Beirut Port and secondarilyattheportsofTripoli,Chekka,Jounieh,SaidaandTyreaswellasthepetroleum portsofTripoliandZahrani. 3.Airtransport: Remarkableeffortshavebeenmadeintheairtransportationsectorduringrecentyears.The additionalinfrastructure,adoptionofnewtechniques,andthesigningofseveralagreements were aimed at increasing traffic at the Beirut Rafic Hariri International Airport. Opened on April3,1998,thenewairportisofinternationalstandardandcanstanduptointernational comparison. The Rafic Hariri International Airport is also the hub for Lebanon's national carrier, Middle EastAirlines(MEA).
G. Explain the communication system.

Lebanons telecommunications network improved considerably following the development and rehabilitation projects undertaken by the Ministry of Posts, Telephones and Telecommunications.Additionally,thephenomenalgrowthofcellulartelephonesduringthe lastfewyearshasbroughttelephoneservicestoquitealargenumberofpeople. ThefixedsystemisknownbytheacronymPSTN(PublicSwitchedTelephoneNetwork). Thetelephonesystemmanagementinstalledpublicphoneboothsthroughoutthemaincities ofthecountry. The cellular mobile telephone system was established through private sector participation paralleled with the public investment program. The Government adopted the BOT (build, operate and transfer) approach to the project. This means that the operator provides the funds needed to carry out the work and operate the system. The private operators in Lebanon were Telecom Finland International, represented by Libancell and France Telecom MobileLiban,representedbyCellis. From June 1st, 2004 the GSM network in Lebanon has been transferred to the Lebanese Governmentanditisbeingoperatedby: Mobile Telecommunications Company sarl, (mtc touch is the brand name of the network ownedbyMobileInterimCompanyNo2SAL.) Orascom Telecom, (Alfa is the brand name of the network owned by Mobile Interim CompanyNo1SAL.)
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 PostalservicesaremanagedbyaprivatecompanycalledLibanpostSAL. H. Describe the public services i.e. water, electricity, gas. Are they publicly or privately owned? 1 Electricity:TheGovernmentiscarryingoutanextensiveprogramtorehabilitateand expandelectricalpower.However,powerisstillnotprovided24hoursadayandisrationed inallLebaneseregions. 2 Water: Unlike neighboring countries, Lebanon does not suffer from a shortage of naturalwater.However,waterresourcesaredecliningduetodecreasingquantitiesofrainor increasedexposuretopollution.Atthetimebeing,thereareofficesandcommittees,under the supervision of the Ministry of Hydraulic and Electrical Resources, in charge of the managementofthewatersupply.PerformanceofthisMinistryisconsiderablyhamperedby insufficientbudgetaryfundsandlowstaffinglevels. The CDR has launched projects for the recovery of water transmission and purification in three ways: Technical assistance to the Ministry of Hydraulic and Electric resources, rehabilitation of current infrastructure and the extension of current, and provision of new infrastructures.Boththeelectricitysectorandthewaterservicesarepubliclyowned. 3 Gas: Gas distribution is ensured by privatelyowned bottled gas distribution companies.Thereisnogaspipesnetwork. II. GENERAL CONSIDERATIONS
A. Investment policies 1. Does the country generally welcome investment? Are there governmental or private agencies devoted to the promotion of investment?

The Government has generally followed a policy to encourage foreign investments. Full foreign ownership of businesses is free, subject to a very limited number of restricted activities such as exclusive commercial agency in relation to which Lebanese majority ownershipisprescribed.ForeignersmayfreelyownpropertyinLebanonupto3,000square metersandwithauthorizationbeyondsuchlimit.
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 2.

What is the rate of inflation?

Year

Inflationrate(consumer prices)

Rank

Percent Change

Dateof Information 2002est. 2003est. 2004est. 2005est. 2006est. 2007est. 2008est.

2003 3.50% 2004 2.50% 2005 2.00% 2006 2.40% 2007 4.80% 2008 4.20% 2009 10.00%
3.

104 137 28.57% 53 68 20.00% 20.00%

129 100.00% 107 12.50% 145 138.10%

Explain any sector exceptions, incentives or restrictions on foreign investment?

Thereareneitherexceptionsnorrestrictionsonforeigninvestment.Therearenosignificant incentivesforforeigninvestments.
4. Describe de facto restrictions on investment, if any, such as bureaucratic discretion.

Therearenodefactorestrictionsoninvestment.
5. What is the size of the different markets?

Lebanon being a small country, there is a single market, where the services sector is predominant.
6. What types of businesses are conducted in the country?

AlltypesofbusinessesareconductedinLebanon.
B. 1. Diplomatic Relations Explain any established diplomatic relations your country may have.

Lebanon has diplomatic relations with a very large number of countries. There are no restrictionsastoestablishingdiplomaticrelationswithanycountryexceptwithIsrael.

2. Give addresses and telephone numbers for the embassies or consulates in your country?
Embassy of Algeria in Beirut, Lebanon Rue Jnah Bp 4794/11 City: Beirut Phone: 961 1 82 67 12, 961 1 82 20 81 Fax: 961 1 82 67 11, 961 1 84 08 81 Embassy of Argentina in Beirut, Lebanon Achrafieh, Rue Sursock N 161, Imm. Moutran Residence des Jardins, 2 eme. etage Beirut, Lebanon City: Beirut Phone: (+961) 1 210 800 / 801 Embassy of Armenia in Beirut, Lebanon Rabieh, Mtaileb Jasmin St. Beirut, Lebanon City: Beirut Phone: (961 4) 402952 Australian Embassy in Beirut, Lebanon Embassy Complex Serail Hill Beirut, Centre-Ville Lebanon City: Beirut Phone: (961-1) 974030 Embassy of Austria in Beirut, Lebanon Avenue Charles Malek, Tabaris 812 Bldg., 8. Floor Tabaris - Achrafieh Beirut, Lebanon City: Beirut Phone: (+961) (1) 21 73 60- (+961) (1) 21 74 12 - (+961) (1) 21 74 91 Embassy of Belgium in Beirut, Lebanon Batiment Lazarieh - bloc A 10eme etage - Rue Emir Bechir Beyrouth Centre Ville City: Beirut Phone: + (961) (0)1/97.60.01 to 05 Consulate of Belize in Jdeidet El Metn, Lebanon Fanar, Saga Consept Building P.O.Box 90-887 Jdeidet El Metn 12022070 Lebanon City: Jdeidet El Metn Phone: (961)1 87242- (961) 42-1-8974501 Bulgarian Embassy in Beirut, Lebanon Hazmieh, Mar Takla, sector 6, str.44 Beirut, Lebanon City: Beirut Phone: 00961 5452883-00961 5453658

Embassy of Canada in Beirut, Lebanon First Floor, Coolrite Building, 43 Jal El Dib Highway Beirut, Lebanon City: Beirut Phone: 961 (4) 713-900 Chinese Embassy in Beirut, Lebanon 72, Rue Nicolas Ibrahim Sursock Ramlet Baida Beirut, Lebanon City: Beirut Phone: 00961-1-850314 Embassy of Colombia in Beirut, Lebanon Jal El Dib, Center Mazda, Flr 5 Beirut, Lebanon City: Beirut Phone: (961) 4 712646-(961) 4 712648 -(961) 4 712647 General Honorary Consulate of Costa Rica in Beirut, Lebanon Abd-El-Baki Bldg 1st Floor Facing Broadway Center Hamra Street, Beirut, Lebanon City: Beirut Phone: 00 (961) 134-34-64 / 00 (961) 134-34-54 Consulate of the Republic of Croatia in Beirut, Lebanon Sofil Center, Floor 4 Ashrafia, Beirut Lebanon City: Beirut Phone: 0096 11219 533 Embassy of Cuba in Beirut, Lebanon Hazmieh-Mar Takla Rue Said Freiha Center Farrania 2901 6727 Beirut, Lebanon City: Beirut Phone: (961) 05-459925 Honorary Consulate of the Republic of Cyprus in Beirut, Lebanon Cyprus Airways Starco Building, - Block C Ground Floor Central Beirut Lebanon City: Beirut Phone: (00961) 1 366192, (00961) 3 691700 (Mob.) Embassy of the Republic of Cyprus in Beirut, Lebanon M.N.C. Building Debbas Street Rmeil-Achrafieh Beirut, Lebanon City: Beirut Phone: (+ 961) 1 326461-(+ 961) 1 329500- (+ 961) 1 217902- (+ 961) 1 217897

Embassy of the Czech Republic in Beirut, Lebanon Antonieh Str., Baabda, Beyrouth P.O. Box 40-195 City: Beirut Phone: 009615/929010-(961)5/929011-(961)5/929012-(961)5/929013-(961)5/929101 Royal Danish Embassy in Lebanon Embassy Complex Army Street Serail Hill, Down Town Beirut, Lebanon P.O. Box: 11-5190 City: Beirut Phone: +961 1 991 001 /2/3/4/5/8 Honorary Consulate of the Dominican Republic in Beirut, Lebanon Property Said Rahal Hadet-Baadba City: Beirut Phone: (961) 5 460 440 Ecuadorian Consulate in Beirut, Lebanon Marignan Medcom Center (11th Floor) Rue du Caire (Near A.U.H) Hamra sector P.O.Box. 113-5770 Hamra Beirut, Lebanon. City: Beirut Phone: 961-1-344234; 961-1-353 648; 961-1-344 234 Embassy of Egypt in Lebanon 4653 Dr. Muhammed El-Bethri st. - Be'ar Hassan City: Beirut Phone: (009611) 859977 - 825566 Fax: (009611) 859988 Embassy of Finland in Beirut, Lebanon Sadat Tower, 5th floor Sadat Street Postal Address: P.O.Box 113-5966 City: Beirut Phone: + 961 1 802 275/ 6 Honorary Consulate General of Finland in Beirut, Lebanon 30, rue Badaro Chaoui Building, 3rd Floor, Badaro Postal address: Honorary Consulate General of Finland P.O. Box 11-7956 Omnipharma City: Beirut Phone: +961-1-396704, -705-708 Embassy of France in Beirut, Lebanon Rue de Damas - Espace des Lettres Ras El-Nabaa - Beyrouth City: Beirut Phone: [961] (1) 42 00 00

Consulate General of France in Beirut, Lebanon Rue de Damas BP 11-477 - Beirut City: Beirut Phone: [961] (1) 42 00 00 German Embassy in Lebanon B.P. 11-2820 Riad El-Solh Beirut 1102 2110 Lebanon City: Beirut Phone: (00961 4) 91 44 44 Embassy of Greece in Beirut, Lebanon P.O. Box 11-0309 City: Beirut Phone: (009614) 418772, 521700, 524378 Danish Embassy in Lebanon Embassy Complex Army Street Srail Hill Down Town Beirut, Lebanon City: Beirut Phone: +961 (1) 991 001

Espace des Lettres - Batiment A

Honorary Consulate of Guatemala in Beirut, Lebanon Ras Beirut Street Justinian Center City: Beirut Phone: 00961 3 691916 Fax: 00961 134-5457 Consulate of Guyana in Beirut, Lebanon Selim Bustros Street 1st Floor E1 Dar Building Achrafteh, Beirut, Lebanon. City: Beirut Phone: 961-1-202-220 / 961-1-200-689 Indian Embassy of India in Lebanon 31, Kantari Street Sahmarani Building P.O. Box No. 113-5240 ( Hamra ),& 11-1764 ,Beirut,-1107-2090 City: Beirut Phone: 00-961-1-373539, 372619 Embassy of Indonesia in Baabda, Lebanon Presidential Palace Avenue Rue 68 Sector 3, No. 3237 (P.O.BOX 4007) City: Baabda Phone: (961-5) 924-682, 924-683, 924-676 Honorary Consulate of Indonesia in Tripoli, Lebanon Boulevard Street Khlat Building Tripoli, Lebanon City: Tripoli Phone: (961-6) 433-913

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Embassy of The Republic of Iraq in Lebanon Phone: 009615 - 453209 / 009615 - 435211 Fax: 009615 459850 Honorary Consul General in Beirut, Lebanon Rue de Chilie Kollelat Building - Verdun P.O. Box 11-746 SPINAL LE City: Beirut Phone: +961-1-863-040 / -863-239 Embassy of Italy in Beirut, Lebanon Rue du Palais Presidentiel 2902 2633 - Baabda P.O. Box 57 Baabda City: Baabda Phone: 961 5 954955 Jamaican Consulate in Lebanon Mme Curie Street Minkara Centre Bldg., 3rd Fl. Hamra, P. O. Box 5584 City: Beirut Phone: 747-244/5/6, 352425, 340736 Embassy of Japan in Beirut, Lebanon Serail Hill Area, Army Street, Zokak el Blat, near the Grand Serail P.O.Box 11-3360, Lebanon City: Beirut Phone: +961-1-989751 Embassy of Jordan in Beirut, Lebanon Babda/ Elias Al Hilo PO Box 5113 City: Beirut Phone: +96-1-5922501/+96-1-5922500 Kuwaiti Embassy in Beirut, Lebanon Bir Hassan Road Point Cit Sportive P.O.Box 4380 Beirut Lebanon City: Beirut Phone: (+961-1) 822515/6/7 or (+961-1) 85252 Embassy of Malaysia in Beirut, Lebanon 5 & 6 Floor, Halawani Building Salah Eldin Al Ayyoubi Str, Ras Beirut, Beirut, Republic of Lebanon City: Beirut Phone: 00 961 1 787144 or 00 961 1 787166

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Honorary Consulate of Malta in Beirut, Lebanon Pres. Elias Sarkis Avenue Sarraf Building Achrafieh P.O. Box 165533 Beirut City: Beirut Phone: 00961 (1) 322 999; 328 999 Embassy of Mexico in Beirut, Lebanon Secteur 2, str. 53 Mansour Bldg # 90, 1st. floor New Naccache City: Beirut Phone: (961-4) 418-870 al 72 Embassy of Morocco in Beirut, Lebanon. BIR HASSAN RUE DES NAT. UNIES- PRES DE L'UNUFIL Beirut City: Beirut Phone: (+961) (1) 85 98 51, (+961) (1) 85 98 29 Honorary Consulate General of Nepal in Beirut, Lebanon Street-Nadim Comair Bldg, City: Beirut Phone: 00961-1-386-690 Embassy of the Kingdom of the Netherlands in Beirut, Lebanon Netherlands Tower Charles Malek Avenue, Opposite Centre Sofil 2073-0802 Achrafieh 1100-2190 City: Beirut Phone: 00-961-1-204663 Royal Norwegian Embassy in Beirut Embassy Complex, Serail Hill Postal Address: P.O. Box 113.7001, Hamra, 1103-2150 City: Beirut Phone: +961-1-960-000 Embassy of the Sultanate of Beirut, Lebanon Al-Tyser Bldg P.O. Box 135900 Beirut Shouran City: Beirut Phone: (009611) 856555 Embassy of Pakistan in Beirut, Lebanon Watta Moseitbeh, Gabriel El Mur Street Dar Salam Building Beirut- Lebanon City: Beirut Phone: (+961-1) -835453 &835634 Al- Remla Al- Bida Venezuele Street

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Embassy of the Philippines in Beirut, Lebanon Plot No. 511 Charles Malik Avenue Across Roadster Diner Achrafieh, Beirut Lebanon P.O. Box No. 136631 City: Beirut Phone: (9611) 212-001 to 3 The Embassy of the Republic of Poland in Beirut Av. President Suleiman Frangieh 52 /Raymond Khalife Bldg. 40-215 Baabda City: Beirut Phone: 05-928-881, 05-468-152 Embassy of the State of Qatar Shoran-Dabs Buildint, 1st Floor Beirut Lebanon City: Beirut Phone: (+961-1) 865271 Embassy of Romania in Baabda, Lebanon Route du Palais Prsidentiel, Baabda Lebanon City: Baabda Phone: (00) (961) (5) 924848 or 924849

Building No. 29

Embassy of Russia in Beirut, Lebanon Beirut-Rue Mar Elias el-Tina, B.P. 5220, Beirut, Lebanon City: Beirut Phone: (+9611) 30-0042 Consulate General of San Marino in Beirut, Lebanon Autoroute Jal El Bid Yachouhi Building City: Beirut Phone: +961-4-714002 Seychelles Consulate Beirut, Lebanon PO Box 55363, Beirut City: Beirut Phone: (+961-1) 680674 Consulate of Sierra Leone in Lebanon Speats St, near the Lebanese Red Cross building P.O.Box 112016 City: Beirut Phone: +961-1-367264 Consulate of Singapore in Lebanon Center Sofil, Charles Malek Avenue Achrafieh Achrafieh City: Beirut Phone: +961-1-334-335 / +961-1-200-786/+961-1-200-787

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Slovenia Embassy in Lebanon Jounieh PO Box 818 City: Jounieh Beyrouth Phone: +961-9-900003 Embassy of North Korea in Mousaitbeh, Lebanon Camelia 3 bldg, 5th floor, Said Freiha Street PO Box 40-290 Baabda Hazmieh City: Baabda Phone: +961-5-953167/+961-5-953169 Embassy of Spain in Lebanon Palais Chehab, Hadath Antounie B.P.: 11/3039 City: Beirut Phone: (+961) 5 46 41 20 Embassy of Sudan in Beirut, Lebanon Minkara Building Verdun Street City: Beirut Phone: +961.1.353.270 Consulate-General of Sweden, Beirut Ecochard Avenue, Sin El Fil Beirut Lebanon City: Beirut Phone: +961 (1) 485489 Syrian Embassy in Beirut, Lebanon Hamra Street Hamra City: Beirut Phone: 009611735849/ 009611736145 Embassy of Ukraine in Lebanon Sin El-Fil, Jisr Al-Bacha,Al-Bacha Gardens, Bloc B City: Beirut Phone: (+961-1)-510527 / 510531 / 511971 Embassy of United Arab Emirates in Beirut, Lebanon Al Janah - Ramlah Al Bayda, Opposite to Edin Rock Beirut, Lebanon City: Beirut Phone: +961-1-8570006 Embassy of Great Britain in Beirut, Lebanon Serail Hill Beirut Central District PO Box : 11- 471 Beirut Lebanon City: Beirut Phone: 00961 (0)1 990400 Fattal Building

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Embassy of the United States in Beirut, Lebanon Awkar facing the Minicipality P.O.Box: 70-840 Antelias Lebanon City: Beirut Phone: (961) 4 542600 543600 Embassy of Uruguay in Lebanon Rue Banque du Liban, Immeuble, Stella Maris , 3e. Etage, Jounieh City: Beirut Phone: +9619 63-65-29 / +9619 63-65-30 Embassy of Venezuela in Lebanon Rue Marche Zalka Breezevale House, 5th floor Beirut, Lebanon City: Beirut Phone: +961-1-88-87-01 / +961-1-88-87-16 Embassy of Yemen in Beirut, P.O.Box 114 Beirut Lebanon City: Beirut Phone: (+961-1) 852691/2, 852688

3.

Are there prohibitions or restrictions on certain business dealings with the country?

There are generally no such restrictions or prohibitions, subject to compliance with the relevantregulations.
4. Explain any travel restrictions to or within the country?

Thereareneithertravelrestrictionswithinthecountrynortothecountrywiththeexception ofIsrael:IsraelicitizenscannotentertheLebanesesoilandanypersonwhohasanentryvisa toIsraelonhispassportcannotenterLebanon.

C. Government

1. Explain your countrys election system and schedule. Is there an anticipated change in the present government?

There are 128 members of Parliament, half of which are Christians and half Muslims. Each candidateiselectedforafouryearmandate. EveryLebanesecitizenaged21(Maleorfemale)canvote. There is no anticipated change in the current government, it was appointed following the generalelectionsinJuneof2009andshouldremainassuchforfouryears.

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2. Is the present government stable? Briefly explain your countrys political history in the last decade.

Intheyear2000,IsraelpulledoutfromthesouthofLebanon. OnSeptember2,2004,theUNSecurityCounciladoptedUNSecurityCouncilResolution1559, coauthored by France and the United States. Echoing the Taif Agreement, the resolution "callsuponallremainingforeignforcestowithdrawfromLebanon"and"forthedisbanding anddisarmamentofallLebaneseandnonLebanesemilitias." OnFebruary14,2005,RafikHariri,theformerPrimeMinisterofLebanonwasassassinated, andastringofpoliticalassassinationsandterroristattackstookplaceinthecountry. International pressure for the withdrawal of Syria intensified and public perception in LebanonturnedstronglyagainstSyria,evidencedbymassdemonstrationsthatwerelabeled theCedarRevolution.PresidentBasharalAssadofSyriaannouncedonMarch5,2005thathe planned to "bring his forces home." The withdrawal, involving about 14,000 troops, took aboutsevenweekstocomplete. OnMay7,2005MichelAoun,Lebanesepoliticianandformermilitarycommander,returned toLebanonafter15yearsofexile. On April 26, 2005, after 29 years of military action in Lebanon, the last Syrian troops left Lebanon. Thegovernment(presidedbyOmarKarami)resignedandatransitionalgovernmentwasput inplace(presidedbyNajibMikati),afterthreemonths,thenewgovernmentwasformedby FouadSiniora. Parliament passed an amnesty bill on 18 July 2005 to free Samir Geagea, the leader of the Lebanese forces political party that had been imprisoned for the last 11 years for his war crimes.GeageawasreleasedfromprisononJuly26,2005. October 31, 2005: The UN Security Council unanimously approved a resolution demanding SyriatocooperatewithaUNinvestigationintotheassassinationofLebanon'sformerprime minister,threateningfurtheractionagainstDamascusifitcontinuestostonewall. 12July2006:WarwithIsraelbegins.

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The conflict continued until a United Nationsbrokered ceasefire went into effect in the morningon14August2006,thoughitformallyendedon8September2006whenIsraellifted itsnavalblockadeofLebanon. The2007LebanonconflictbeganwhenfightingbrokeoutbetweenFatahalIslam,anIslamist militant organization, and the Lebanese Armed Forces (LAF) on May 20, 2007 in Nahr al Bared, an UNRWA Palestinian refugee camp near Tripoli. It was the most severe internal fightingsinceLebanon's197590CivilWar. November2007:PresidentEmileLahoudresignsandLebanonstayswithoutapresidentfor6 months. May2008:ConflictinBeirutbetweenthegovernmentandtheopposition. TheDohaAgreementwasreachedbyrivalLebanesefactionsonMay21,2008inDoha,Qatar which resolved several issues including electing Michel Suleiman as president of Lebanon, and forming a national unity government composed of 30 ministers distributed among the majority(16ministers),theopposition(11ministers)andthepresident(3ministers). May25,2008:PresidentMichelSleimanwasswornintoofficeasPresidentofLebanon. JuneOctober 2009: The present Government presided by Saad Hariri, son of the late Rafic Hariri,wasformedfollowinggeneralelections. 3. Explain your countrys judicial system. Be sure to answer the following questions:
Is the judicial system generally perceived to be impartial? Must disputes be resolved in the country? Is there a political method of resolving disputes? Are alternative methods of dispute resolution permitted? How long does it take to resolve disputes? Can foreign judicial decisions be enforced in the country? Can decisions from the country be enforced outside the country? Are there separate tribunals depending upon the subject matter of the case? Are there different legal systems within the country or its political subdivisions? Can the investor choose to be subject to the country's jurisdiction or not?

The Lebanese judiciary system is structured in a way that makes it similar to the existing systemsinWesterncountries. JusticeissecuredattwolevelsbytheFirstDegreeCourtsandCourtsofAppeal.Alastresort is the Court of Cassation (Supreme Court) sitting in Beirut, comprising of several chambers andoneplenaryassembly.
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 Thejudicialsystemisgenerallyperceivedasimpartial. Disputescanberesolvedoutsidethecountry,ifthepartieschoosetosubmitthedisputetoa foreigncourtandfreelychosetheapplicablelawexceptforcommercialagenciesthatshould be governed by Lebanese law and submitted to the Lebanese courts as per Decreelaw no 34/67ofAugust5,1967governingcommercialagenciesinLebanon. Alternative methods of dispute resolution are permitted: disputes resulting from the executionorinterpretationofcivilorcommercialcontractscanbesubmittedbytheparties toarbitration.Thearbitrationclausemustbestipulatedinthecontractorinanaddendum. The period of time necessary to resolve disputes depends on each case. It is generally perceivedasalongprocedure. Astotheenforcementofforeignjudgments,ajudgmentdeliveredbyaforeigncourtcanbe enforced in Lebanon through an enforcement order (exequatur) issued by the Lebanese judicialauthority.TheenforcementapplicationissubmittedtotheCourtofAppealofBeirut andisgrantedtoforeignjudgmentssubjecttospecificconditions.Thereisnoreviewofthe meritsinthecontextofsuchprocedure. Courtsareorganizedaccordingtothesubjectmatterofthecase.Acommercialmatterwillbe submittedtothecourtsittingincommercialmatters.Therearespecialcourtssuchasmilitary courtsthatdealwithmilitaryissues,andreligiouscourtsthatdealwithfamilylawmattersin accordance with the relevant religious laws. Inheritance matters for nonMuslims are governedbycivillawsandsettledbycivilcourts. Therearenodifferentlegalsystemswithinthecountryoritspoliticalsubdivisions. 4. Explain your countrys legislative system. Laws are enacted by Parliament; bills may be prepared by the government. They are then proposed to the Parliament to be voted. Parliament may enable the government for a determinedperiodoftimetotakeDecreeLawsinparticularmatters. D. Environmental Considerations
1. 2. What is the public/government attitude toward environmental regulation? Explain any environmental regulations.

Lebanons environmental regulations are relatively recent. The Ministry of Environment (http://www.moe.gov.lb/) was established by Law no. 216 of April 2, 1993. Such law was laterreplacedbyLawno.690ofAugust26,2005thatredefinedtheroleandorganizationof
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the Ministry. The Ministry of Environments general duties are to formulate a general environmentalpolicyandproposemeasuresforitsimplementationincoordinationwiththe various concerned government administrations, to protect the natural and manmade environments in the interests of public health and welfare, and to fight pollution by taking preventive and remedial action. The ultimate longterm objectives of the Ministry are the following: Preparetheappropriatelegislativeframeworktoenforceenvironmentalpractices. Initiate working plans and programmes setting the accurate indicators and standards in environmentallyaffectedsectors(privateandpublic). Launchingpublicawarenesscampaignsthroughcoreacademiccurriculaandthroughthe differentaudiovisualmedia. Impose application of Environmental Impact Assessment (EIA) on vital developmental projects,andsubstituteproblematicplanswithenvironmentallyfriendlyones. EmpowerlocalNGOs'roleinthecivilsociety. A number of laws, decrees, and ministerial decisions govern environmental matters. A frameworklawfortheprotectionoftheenvironmentwasadoptedin1988andamendedin 2002 (Law 444 of July 29, 2002), which defines the basis and norms for environmental protectionnotablyforwater,soil,useofchemicalsandresourcemanagementaswellas institutional,administrativeandtechnicalaspects. Lebanon has signed and/or ratified the following international conventions, treaties and protocols:

2001 1999 1994 1992 1992 1992 1990

Stockholm Convention on Persistant Organic pollutants for adoption by the conference of plenipotentiaries. Convention on Wetlands of International Importance especially as Waterfowl Habitat.Ramsar. United Nations Convention to Combat Desertification.-Paris. United Nations Framework Convention on Climate Change.-Rio de Janeiro. Convention on Biological Diversity.-Rio de Janeiro. Amendment to the Montreal Protocol on Substances that deplete the Ozone Layer.Copenhagen. Amendment to the Montreal Protocol on Substances that deplete the Ozone Layer.London. 19

1989 1987 1985 1982 1980 1976 1976 1976 1976 1973 1972 1971

Basel Convention on the Control of Transboudary Movements of Hazardous Wastes and their Disposal.-Basel. Montreal Protocol on Substances that deplete the Ozone Layer.-Montreal. Vienna Convention for the Protection of the Ozone Layer.-Vienna. Protocol Concerning Mediterranean Specially Protected Areas. Protocol for the Protection of the Mediterranean Sea against Pollution from Land-based Sources.-Athens. Convention on the Prohibition of Military or any other hostile use of Environmental Modification Techniques.-Geneva. Protocol Concerning Co-operation in Combating Pollution of the Mediterranean Sea by Oil and Other Harmful Substances in Cases of Emergency.-Barcelona. Convention for the Protection of the Mediterranean Sea against Pollution.- Barcelona. Protocol for the Prevention and Elimination of Pollution of the Mediterranean Sea by Dumping from Ships and Aircraft.-Barcelona. International Convention for the Prevention of Pollution from Ships.-London. Convention on the Prevention of Marine Pollution by Dumping of Wastes and Other Matter.-London-Mexico city-Moscow-Washington. Treaty on the Prohibition of the Emplacement of Nuclear Weapons and other Weapons of Mass Destruction on the Seabed and the Ocean floor and in the Subsoil.-LondonMoscow-Washington. International Convention relating to Intervention on the High Seas in cases of Oil Pollution Casualties.-Brussels. International Convention on Civil Liability for Oil Pollution Damage.-Brussels. International Convention for the Prevention of Pollution of the Sea by Oil.-London.

1969 1969 1954

III. A.

INVESTMENTINCENTIVES Explainanyexportincentivesorguarantees.Besuretoanswerthefollowingquestions: Aretheretaxincentivesforexports? No.

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Ifso,aretheylimitedtocertaintypesofproducts?

N/A. Isexportfinancingavailablefromgovernmentorprivatesources? N/A. Ifso,whatformsoffinancingorguaranteesareavailable? N/A. Isthereanygovernmentalinsuranceforexports? No. Must a national be a participant in the enterprise in order for the investor to benefit fromtheseincentives? N/A. B. Explainanygrants,subsidiesorfundsyourcountryoffersforeigninvestors.Besureto answerthefollowingquestions: Aregrantsandsubsidiesrestrictedbythetypeofactivity?

Touristic,agriculturalandindustrialenterprisescarryingoutprojectsinLebanoncanbenefit fromStatesubsidy,throughtheCentralBankofLebanon,ontheinterestoftheloansgranted bybanksoperatinginLebanon,accordingtocertaineligibilitycriteria,aspertheCentralBank basiccircularno.80dated2January2001. Small and medium sized enterprises (SMEs) operating throughout Lebanon in the industry, agriculture,tourism,traditionalcraftsandhightechnologysectorsmayobtainguaranteesto the loans granted by banks operating in Lebanon from Kafalat SAL, a Lebanese financial company established by the Lebanese government. Kafalat SAL is owned by the National Institute for the Guarantee of Deposits (75%) and by fifty Lebanese banks (25%). Kafalat guaranteedloansbenefitfrominterestratesubsidiesfinancedbytheLebaneseTreasuryand administeredbytheCentralBankofLebanon. Whatistheprocessforobtainingapprovalforthesegrantsorsubsidies? Submit an application with the necessary supporting documents to the bank granting the loanand/ortoKafalatSAL.
21

 Howlongdoesittaketoreceiveapproval? Oncetheapplicationisreceivedalongwiththenecessarysupportingdocumentsevidencing that the applicant meets the necessary requirements, the decision process to approve or rejectanapplicationtakesuptofourweeks. Cantheinvestorreceiveloansfromthegovernmentorgovernmentalagencies? No. Must a national be a participant in the enterprise in order for the investor to receive thesegrantsorsubsidies? TheinvestormustbeestablishedandoperatinginLebanon. Iftheinvestorisalimitedliabilitycompany,allthepartnersmaybeforeigners. Iftheinvestorisajointstockcompany,themajorityofthemembersofitsBoardofDirectors mustbeLebanese. However,iftheinvestmentprojectisgovernedbytheInvestmentDevelopmentLawno.360 dated August 16, 2001 as amended (regulating investment promotion of domestic and foreign entities and aiming at encouraging Lebanon's economic and social development as well as enhancing its competitiveness), then the joint stock company may be granted a specialexemptionfromtheaboverequirementbyadecisionoftheInvestmentDevelopment AuthorityinLebanonIDALprovidedspecificrequirementsaremet(Article174ofthesaid Law). C. Explainanynationaltaxincentivesforforeigninvestors.Besuretoanswerthefollowing questions: Aretheincentivesrestrictedbythetypeofactivity? Tax incentives are granted by the Investment Development Law no. 360 dated August 16, 2001asamended.Theyarerestrictedtoprojectsintheindustry,agriculture,agroprocessing, tourism,informationtechnology,communicationsandmediasectors. Aretheincentivesrestrictedbythedurationoftheactivity? Theincentivesaregrantedinlightofseveralfactors,includingtheprojectsduration.
22

 The process of application consists of submitting an application with the necessary supportingdocumentstoIDALwhowillevaluatetheprojectanddecidewhethertograntthe incentivesavailable. D. Explain any regional tax incentives open to foreign investors. Be sure to answer the followingquestions: Aretheretaxincentivesfortheinvestorthatexistonlyincertainregionsofthecountry? TheInvestmentDevelopmentLawno.360datedAugust16,2001dividedLebanonintothree investment zones (A, B andC). The incentives for investment projects will be based on the categorizationoftheprojectwithinaparticularinvestmentzone. Doestheinvestorneedtoreceiveapprovaltobeeligiblefortheseincentives? Yes,fromIDAL. Aretheincentivesrestrictedbythetypeofactivity? The Investment Development Law no. 360 grants incentives to industry, agriculture, agro processing,tourism,informationtechnology,communicationsandmediaprojects. Aretheincentivesrestrictedbythedurationoftheactivity? Theincentivesaregrantedinlightofseveralfactors,includingtheprojectsduration. Whatdoestheprocessofapplicationinvolve? Theprocessofapplicationinvolvessubmittinganapplicationwiththenecessarysupporting documentstoIDALwhowillevaluatetheprojectanddecidewhethertogranttheincentives available. IV.FINANCIALFACILITIES 1.Banking/FinancialFacilities Whatkindoffinancialinstitutionsexist? Commercialbanks
23

Whatistheprocessofapplication?

Private banks (investment banks and long and short term credit banks) such as Banquedel'HabitatSAL(thehousingbank) Branchesofforeignbanks Foreignbanksrepresentativeoffice Financialinstitutions FinancialinstitutionestablishedbytheLebanesegovernment(Kafalat) Branchesofforeignfinancialinstitutions Leasingcompanies Brokeragefirms Branchesofforeignbrokeragefirms Moneydealers

Musttheinvestormaintainabankaccountinthecountry? No. Whataretherequirementsforopeningabankaccount? Therequirementsforopeningabankaccountaremainlythepersonalinformation(identity and address), evidence of the source of money and identification of the economical beneficiary,inaccordancewithapplicablelawsandregulationsonfightingmoneylaundering, mainlyLawno.318dated20April2001. Whataretherestrictions,ifany,ontheinvestor'suseoftheaccount? Therearenoparticularrestrictionsontheinvestorsuseoftheaccountexceptforcompliance withthelawsandregulationsonfightingmoneylaundering,mainlyLawno.318datedApril 20,2001. Whatisthetypeoffinancialsysteminthecountry? Thefinancialsystemisliberalwithfreetransferandexchangeofmoney. Howisthebankingsystemstructured? Therearelocalbanksandfinancialinstitutionsandbranchesofforeignbanksandfinancial institutions.TheCentralBankofLebanongrantslicensesfortheestablishmentofbanksand financial institutions and the Banking Control Commission controls and supervises such institutions.
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 Isthereastockmarket? Yes,theBeirutStockExchange. Cantheinvestorreceivebankloans? Yes. V.EXCHANGECONTROLS 1.BusinessTransactionswithNationals,ResidentsorNonResidents Howarenationals,residentsandnonresidentsdefined? Thereisnolegaldefinition.NationalsmaybedefinedasthepersonswhoholdtheLebanese citizenship.ResidentsarepersonshavingapermanentaddressinLebanon. Arethererestrictionsonconductingbusinesswithnationals,residentsornonresidents? No, except that conducting business with a resident of Israel or an Israeli national is prohibited. Aretherereportingrequirements? No. Cantheinvestorreceiveloansfromnationals,residentsornonresidents? Yes,subjecttotheprohibitionofdealingswithIsraelinationalsorresidentsofIsrael. 2.InvestmentControls Arethererestrictionsondirectinvestmentinthecountry? The acquisition of real estate properties in Lebanon by foreigners, whether individuals or legalentities,mustbeauthorizedbytheCouncilofMinistersifthetotalsurfaceareaacquired exceeds3,000sqmeterswithinthewholeLebaneseterritory.
25

 Are there restrictions on indirect investments in the country? Must the investor make declarationsregardingthenatureofhisinvestment? Therestrictionsonindirectinvestmentsarethefollowing: The majority of the members of the Board of Directors of a joint stock company must be Lebanese. Companiescarryingoutcommercialrepresentationactivities(DecreeLawno.34of5August 1967)aresubjecttothefollowingrestrictions: (a)If the company is a partnership or a limited liability company, the majority of partners must be Lebanese nationals, and they must hold the majority of the companyscapital. (b) If the company is a joint stock company, its shares must be in the form of registered shares and the majority of its capital must be held by Lebanese nationals. Also at least two thirds of its Board members must be of Lebanese nationality.Inallcases,themanagementofthecompanymustbeentrustedtoa Lebanesenational. Jointstockcompanycarryingoutshippingagencyactivities:Halfofitscapitalmustbeheldby Lebanese nationals. For limited liability companies, 51% of the capital must be held by Lebanesenationals. Companies wishing to publish political magazines (Law of September 14, 1962 regarding printingmatters)aresubjecttothefollowingrestrictions: a) Forlimitedliabilitycompaniesandpartnerships,allpartnersmustbeLebanese nationals. b) For partnerships by shares, partners who are personally liable must be Lebanese. c)For joint stock companies, all shares must be held by Lebanese nationals or Lebanesecompanies. Joint stock companies running a public utility must have one third of their capital held by Lebanesenationals. Investorsdonothavetomakedeclarationsregardingthenatureoftheirinvestment.
26

 3.MoneyTransfer Istherefreedeterminationofexchangerates? Yes. Arethererestrictionsonthetransferofmoneyintooroutofthecountry? No,exceptforcompliancewithlawsandregulationsonfightingmoneylaundering(Lawno. 318dated20April2001. Arethererestrictionsontheremittanceofprofitsabroad? No. Aretherereportingrequirements? No. Canhardcurrencybetakenoutofthecountry? Yes. VI.IMPORT/EXPORTREGULATIONS 1.CustomsRegulations IsthecountryamemberofGATT? Yes. IsthecountryamemberoftheEEC? No.However,on17June2002LebanonsignedinLuxembourgtheEUROMEDagreementwith theEuropeanUnionanditsmembers,whichwasratifiedbyLawno.474dated12December 2002. Isthecountryapartytoaregionalfreetradeagreement? In1997,LebanonsignedtheAgreementtoFacilitateandDevelopTradeamongArabStates.
27

Lebanon has also signed bilateral agreements, such as the liberalization agreement of LebaneseSyrian trade signed in February 1998 regarding the progressive liberalization of tradebetweenthetwocountries. DoestheCustomsDepartmentvaluethegoods? Yes. Howaregoodsclearedthroughcustoms? FollowingthedeclarationofthegoodstoCustoms,thelatterverifiesitsvalidity,includingthe inspectionofgoods;then,thedutiesaresetincompliancewithCustomstariffsorthetariff providedforinapplicablelawsandregulations.Finally,thedutiesarepaidattheCustoms' Treasuryagainstareceipt. Arethereapplicabletariffs? Yes,inlinewiththeCustomstariffbook. 2.Exports Arethererestrictionsonexports? In addition to the prohibition of exporting to Israel, Lebanon operates export control on goods on an item by item basis. Some items are prohibited from being exported, such as weapons, ammunitions, narcotics and archeological pieces and currencies, while export of otheritemsissubjecttotheauthorizationofdesignatednationalauthorities.Allsuchitems aredetailedinascheduleestablishedbytheCustomsAuthorities. Areexportlicensesrequired? Exportofsomeitemsrequirespriorauthorization. Arethereapplicableexportduties? No. 3.ForeignTradeRegulations Arethereforeigntraderegulationsontheimportorexportofgoodsinvolvedinthebusiness? Yes.
28

4.Imports Areimportlicensesrequired? Someproductsrequireanimportlicense. Arethereapplicableimportduties? Yes.

Arethereapplicableimportquotas? No. Arethereapplicableimportbarriers?

AllimportsfromIsraelareprohibited. Theimportationofsomefruitsandvegetablesisforbiddeninspecificseasonsanddatesto protectlocalagriculture. Apriorlicenseisrequiredtoimportsomeproducts,suchasceramicsanitaryware,insulated wire,telephonewireandcoppercables. 5.ManufacturingRequirements Musttheproductcontainingredientsorcomponents,whicharefoundorproducedonlyinthe country? No. Willtheimportationofcertaincomponentpartsbepermittedonlyiftheyaretobeultimately incorporatedinafinalproduct? No.

6.ProductLabeling

Are there applicable labeling or packaging requirements (e.g. multilingual notices, safety warnings,listingofingredients,etc.)? Theapplicablelabelingorpackagingrequirementsarethefollowing:safetywarnings,listing of ingredients, production and expiry dates. The English and French language would be accepted.
29

VII. STRUCTURES FOR DOING BUSINESS 1. Governmental Participation - Will the government seek to participate in the ownership or operation of the entity (e.g. depending on the type of activity involved)? - If so, to what extent? - What is the investor's potential liability to partners, investors or others? - Are there restrictions on capitalization? - What are the investor's tax consequences? (see also Sections XII and XIII)

Lebanonenjoysawidelyliberalandopenlegalsystemforforeigninvestors,theymayfreely do business in Lebanon and may own local companies. The government would not seek to participate in the ownership or operation of the entity, and there are no restrictions on capitalization.
2. Joint Ventures - Are joint ventures permitted? - If so, what is the registration or incorporation procedure? - How long do these procedures take? - What costs and fees are involved? - Must a national of the country or a related state, (e.g. the EEC) be a participant, manager or director? - What is the investor's potential liability? - Are there restrictions on capitalization? - What are the investor's tax consequences?

Jointventuresarepermitted,andtheyareestablishedbyprivateagreementssettingoutthe rights and obligations of the parties. Deprived of legal entity, the joint venture is not submittedtotheincorporationorpublicationformalities.Consequently,eachpartnerdealing with a third party is considered to be dealing in his own name and for his account. Such partneristhereforepersonallyresponsibleforthecompanysdebts. Thereisnoobligationforanationaltobeaparticipant,managerordirectorandthereareno restrictionsoncapitalization.
3. Limited Liability Companies - Are limited liability companies permitted? - If so, how are they registered or incorporated? - How long do these procedures take? - What costs and fees are involved? - Must a national of the country or a related state be a participant, manager or director? - Are there restrictions on capitalization? - What are the investor's tax consequences?

30

ThelimitedliabilitycompanywasmadepossiblebyDecreeno.35dated5August1967.Itis registered,asforanycompanywhoseheadofficeisinLebanon,attheCommercialRegister oftheregionwheresuchheadofficeislocated.Registrationisrequestedwithinonemonthof thecompanysformation. Theregistrationproceduretakesapproximatelythreedays. There is no obligation for a national to be participant, manager or director. There are no restrictionsoncapitalizationbutthelimitedliabilitycompanymusthaveaminimumcapital of LL 5,000,000 (approximately US $ 3,334) and it cannot be involved in operations of insurance,airlines,transport,bankingandinvestmentoffundsandlocallegislationprohibits thelimitedliabilitycompanyfromissuingnegotiableorregisteredcertificatesortransferable securities,stocks,bondsorshares. The limited liability company is subject to the corporations incometax at the fixed rate of 15% of net profits and to a withholding tax on dividends of 10%. Expenses and charges as expresslydefinedbythelawaretaxdeductible.Thisrateiscutdowntohalfforthetaxlevied on revenues earned by companies when they are generated from the construction or developmentofbuildingsorhousingunitsforsaletothepublic. Incorporationdocuments: TheArticlesofAssociationsignedbythepartnersbeforeanotarypublic orbeforetheHeadoftheCommercialRegister. Anapplicationaddressedtothebankconcerningtheconsignmentof thecapital. Acertificateofthedepositissuedbythebank. Aregistrationapplication. Acertificateofregistration. Acircular. An application addressed to the bank concerning the release of the capital. An application for the appointment of an additional auditor (if the capitalexceedsLL30,000,000).
31

AnapplicationaddressedtotheMinistryofFinancetogivenoticeofthe commencementofbusiness.

Costsandfees:

ForacapitalofLL5,000,000(approximatelyUS$3,334),whichistheminimumcapital: Notarysfees:LL450,000(approximatelyUS$300). Incorporationfees:(i)afixedfee:LL750,000(approximatelyUS$500), (ii) a proportional fee of 3 (three per thousand) of the capital (LL 5,000,000x31000=LL15,000orUS$10fortheminimumcapital). Thejudgesmutualfund:(i)afixedfee:LL375,000(approximatelyUS$ 250), (ii) a proportional fee of 1.5 (one and a half per thousand) of thecapital(LL7,500orUS$5fortheminimumcapital). Stamps: LL2,000foreachoriginaldocument. LL1,000foreachduplicate. LL20,000fortheoriginalsignedArticlesofAssociation. LL10,000fortheArticlesofAssociationduplicate. TheregistrationfeeofaproxyattheBarAssociation:LL100,000. The attorneys fees range between US $ 1,000 and US $ 3,000 dependingonthefirm.
4. Liability Companies, Unlimited - What are the forms of liability companies? - How are these companies registered or incorporated? - How long do these procedures take? - What costs and fees are involved? - Must a national of the country be a participant, manager or director?

Thelimitedliabilitycompany(SARL)inwhichthepartnersareliablefor lossestotheextentoftheircontributiontothecapital. Therearetwoformsofunlimitedliabilitycompanies.Theywill bedealtwithundergeneralandlimitedpartnerships. Thereisanotherformoflimitedliabilitycompanies:thejointstock company(SocitAnonyme).

32

Jointstockcompanies(SocitAnonyme): Costsandfees: FortheminimumcapitalofLL30,000,000(approximatelyUS$20,000): Notaryfees:LL660,000(approximatelyUS$440)includingthejusticefee. Incorporationfees:LL1,000,000(approximatelyUS$665). Thejudgesmutualfund:LL550,000(approximatelyUS$365). TheotherfeesarethesameasfortheSARL. Theregistrationproceduredoesnottakemorethanthreedays. Onethirdofjointstockcompaniescapitalwhoseobjectistheoperationofapublicutility mustbemadeupofregisteredsharesheldbyLebaneseshareholders. Injointstockcompanies,themajorityofBoardmembersmustbeLebanese.
5. Partnerships, General or Limited - Are partnerships recognized or permitted? - Must a national of the country or related state be a partner? - If so, to what extent? - What costs and fees are involved? - What is the investor's potential liability? - What are the investor's tax consequences?

Partnershipsarepermittedandthereisnoobligationforanationaltobeapartner. Costsandfeesinvolved: Notaryfees:2(twoperthousand)ofthecapitalplusafixedfeethat mustnotexceedUS$300. Incorporationfees:LL1,000,000(approximatelyUS$665). AttheCommercialRegister: AfixedfeeofLL750,000(approximatelyUS$500). Stampdutyfee:3(threeperthousand)ofthecapital. Thejudgesmutualfund:LL375,000(approximatelyUS$250)+

33

1.5(oneandahalfperthousand)ofthecapital. Thegeneralpartnership(socitennomcollectif,SNC)consistsoftwoormorepartnerswho arejointlyresponsibleforthecompanysdebtsandobligations. Everypartnerispersonallyliableforthepartnershipsdebts.Suchliabilityisjointandseveral andconsequentlycanbeenforcedagainstboththepartnershipsassetsandtheassetsofthe individualpartners. Limited partnership (socit en commandit simple, SCS) consists of two or more people dividedintotwocategories:thegeneralpartner,whoisdeemedtobeatraderandisentitled to take part in the management of the business and is personally liable for the debts and obligationsoftheSCS. The limited partner is not deemed to be a trader and is not liable for the debts of the SCS beyondhiscontribution. Eachpartnerissubjecttoindividualincometax.Theactualincomeissubjecttotaxationafter applying an allowance of LL 3,000,000 for individuals, a supplementary tax allowance of LL 1,500,000formarriedtaxpayers,andLL300,000perlegitimatedependentchild.
6. Partnerships, Undisclosed - Do undisclosed partnerships exist? - If so, how are they formed? - What costs and fees are involved? - Must a national of the country or a related state be a participant, manager or director? - What is the investor's potential liability? - What are the investor's tax consequences?

Undisclosed partnerships are in the form of socit en participation. Please refer to the informationprovidedinrelationtojointventures.
7. Sole Proprietorships - Can the investor be a sole proprietor? - How is the sole proprietorship registered or established? - How long does this process take? - What costs and fees are involved? - What is the investor's potential liability? - Are there restrictions on capitalization? - What are the investor's tax consequences?

Therearenosingleshareholdercompanies.Soleproprietorshipsareintheformof commercialestablishments(fondsdecommerce).Theownermustregisterasatraderat therelevantRegisterofCommerceandregisterhisbusiness.Theownercontinuestobe taxedonhispersonalincome.Thereisnocapitalization.

34

8. Subsidiaries/Branches/Representative Offices - Can the investor establish a branch, subsidiary or representative office? - If so, how long does registration or incorporation take? - What costs and fees are involved? - What is the investor's potential liability? - Must a national of the country be a participant, manager or director? - Are there restrictions on capitalization? - What are the investor's tax consequences? - Are these tax consequences different than those of a local company?

Aforeigncompanymayconstituteorestablishabranchoranofficetocarryouttheactivities ofitsparentcompany.AccordingtoDecreeno.16datedJanuary30,1926,andamendedby Lawno.4180whichwasissuedonMarch7,1980,astatementmustbefiledwiththeMinistry ofCommerceandEconomybeforethecompanycanopenoneormorebranchesinLebanon. RegistrationtakesonemonthatmostandthecostsinvolvedareLL1,800,000(approximately US $ 1,200). Additional registration fees are payable at the Registry of Commerce in the amountofapproximatelyLL1,000,000(US$665),inadditiontoLL1,800,000forcompanies subjecttoDecreeno.96. Thelocalbranchmaycarryoutalltheactivitiesoftheparentcompany,exceptforrestricted activitiessuchascommercialagencyactivities. Representative Offices cannot carry out business. They must restrict their activities to marketingresearchesandpromotion. Thereisnoobligationforanationaltobeaparticipant,managerordirectorandthereareno restrictionsoncapitalization. Branches and Lebanese subsidiaries of foreign companies are subject to taxation under the sameconditionsasLebanesecompanies.Regardinglocalbranches,thetaxauthoritiesdeems thatallamountstransferredtotheheadofficebythelocalbrancharedistributedprofitsand thussubjecttothe10%tax(subjecttodoubletaxationtreaties).
9. Trusts and Other Fiduciary Entities - Are trusts or other fiduciary entities recognized? - If so, how are each defined? - What are the legal consequences of a transfer of assets to a trust or fiduciary? - Can the investor be the grantor, trustee or beneficiary?

Trustsarenotrecognized.

35

Lawno.520dated6June1996entitledDevelopmentoftheFinancialMarketandFiduciary Contracts recognized banks, financial establishments and other establishments authorized bytheCentralBanktoactasfiduciaryagents. Thetransferofassetstoafiduciaryagentisatransferoftheassetspropertytothefiduciary agentwhomustholdthefiduciaryassetsdistinctlyfromhispersonalassets.Theinvestorcan bethegrantororthebeneficiary.
VIII. REQUIREMENTS FOR THE ESTABLISHMENT OF A BUSINESS 1. Alien Business Law - Is the business subject to any alien business law?

No.
- Are there registration or reporting requirements? 2. Antitrust Laws - Do the entity's operations comply with anti-trust laws? - Are there filing requirements?

Therearenoantitrustlaws.
3. Environmental Regulations - Is the business of the investor subject to environmental regulation? If so, are there added costs involved (e.g. audit requirements)? Forspecificbusinesses,environmentalregulationsapply,includingauditrequirements. 4. Government Approvals - Are government approvals required for the anticipated business?

No, subject to prior licensing for specific activities such as banking, insurance, tourism activities,andrestaurants.
- If so, how long does this process take?

Itdependsuponthebusinessinvolved.
- What fees are involved?

Feesinvolveddependonthenatureoftheactivity.
36

5. Insurance - Must the enterprise carry insurance?

Theenterprisemustnotcarryoutinsurance.
- If so, what kind of risks must be insured? - Is there a state monopoly on insurance?

ThereisnoStatemonopolyoninsurance.
6. Licenses/Permits - Are licenses or permits required for the anticipated activity?

Activitieslikeinsurance,bankingandfinancialactivitiesrequirelicenses.
- If so, how does the investor apply for and receive the necessary license or permit?

TheinvestorhastoapplytotheconcernedMinistryorauthorityandsupplythedocuments andinformationrequiredtoobtainthepermit.
- How long does it take to receive the license or permit?

Itdependsonthenatureoftheactivityandtheauthorityconcerned.
IX. OPERATION OF THE BUSINESS 1. Advertising - Are there restrictions on advertising?

AdvertisinginLebanonissubjecttolicensingandcontrol.
2. Attorneys - Is it necessary to have local counsel?

Limitedliabilitycompaniesandjointstockcompaniesmusthavealegalcounsel.
- How can local counsel be found?

TheattorneycanbefoundthroughtheBarorthroughforeignembassiesinLebanon.
37

How much are attorneys fees? TheBeirut Barrecommendsthattheminimumyearlyfeesoftheattorneybesevenmillion fivehundredthousandLebanesepounds(approximatelyUS$5,000).

3. Bookkeeping Requirements - Must the investor keep local books of accounts?

Yes,theinvestormustkeeplocalbooksofaccounts.
- In what form must the investor keep accounts (e.g. GAP, in what language, etc.)? AccountsmustbekeptinlinewithlocalaccountingstandardsandInternationalAccounting Standards. Accountingbooks/recordsandaccountingdocumentscanbeinArabic,FrenchorEnglish. 4. Business Ethics/Codes - Are there certain business ethics or codes which the investor must follow (e.g. GAAP for accountants, etc.)?

No.
5. Consumer Protection Laws - Are there consumer protection laws which apply to the investor's operations?

Yes there is a Consumer Protection Law number 659 issued on February 4, 2005, and that becameeffectiveonMay10,2005.
6. Construction - What are the costs of construction?

Aproportionaltaxisleviedoneachsquaremeteroftheproposedconstructiontobebuiltor addedirrespectiveofthepurposeofuse,andoneachfloor. In addition, there are amounts to be paid for the use of Municipal public domain and for allocationstopublicprojects. Moreover,aproportionaltaxisalsoleviedtoestablishsewersandsidewalks.

38

- Are permits required for construction?

All new constructions, renovations, reconstructions, restoration works of any kind in any propertyaresubjecttoabuildingpermit. - How is authorization to construct obtained? Buildingpermitsaregrantedasperapplicablelawsandspecificrulesnotablythoserelatedto urbanismandpublicsafety. The building permits application is submitted along specific forms set by the Order of EngineersandArchitects,isregisteredwithsaidOrderbytheresponsibleengineer,andthen filed by the engineer at the relevant Urbanism Bureau that studies the application with its enclosures,conductsthenecessarysurveyandcalculatestherelevantbuildingpermitsfees. Afterwards,thefileistransferredtotheMunicipalityandthepermitisissuedbytheHeadof theMunicipalityafterpaymentoftherelevantfees. In areas where there is no municipality, the Urbanism Bureau transfers the file to the Mohafazat or Caemakamiah (heads of administrative regions) to have the building permit issuedbytheMohafezorCaemakam. InBeirutandTripoli,therearenoUrbanismBureaus,andthebuildingpermitsapplicationis filedtotheMunicipality,transferredtotheadhocTechnicalBureauattheMunicipalityand thepermitisissuedbytheHeadoftheMunicipality. - How long does it take to receive authorization? The relevant Urbanism Bureau should study the file and grant the preliminary approval or motivatedrefusalwithinthefollowingdeadlines: Two months as of the registration date of the relevant application, if the plot is locatedonthesideofaroadoronanyofthesidesofanapprovedplanning. Orwithinsixmonthsasoftheregistrationdateoftherelevantapplicationiftheplot is subject to a planning, is adjacent to a planning project, or if the building permit applicationinvolvestheconsultationoftheHighCouncilofUrbanismorotherpublic authoritiessuchastheGeneralDirectorateforArcheologyortheGeneralDirectorate forCivilAviation. Other public authorities, such as the Civil Defense, Electricite du Liban, should also givetheirapprovalormotivatedrefusalwithinfifteendaysasofthedatearelevant
39

demand is transferred to them by the Urbanism Bureau, otherwise they would be deemedashavingimpliedlygiventheirapproval. Then,therelevantUrbanismBureaushould(i)giveitsfinalapprovalwithintheabove timeframes,(ii)advisetheapplicant,and(iii)transferthefileaftercalculatingthefees totheMunicipality,theMohafazaortheCamakamiahasthecasemaybe,tohave the building permit issued by the Head of the Municipality, the Mohafez or the Camakam,afterpaymentofthefees.

- What fees are involved? A premium equivalent to 10% of the above fees is allocated to public projectssuchastheNationalMuseum(5%),publicparksandgardens, andpublictoilets(5%). Apremiumequivalentto5%oftheabovebuildingpermitfeesispaid fortheuseofmunicipalpublicdomains. Moreover, a 0.5% tax of the purchase price for each square meter of landisleviedtoestablishsewersandsidewalks. Inaddition,thefollowingstampdutiesaredue: 2,000 L.L for each square meter for each floor provided it does notexceedLL250,000(approximatelyUS$165)foreachfloor. 1,000L.Lforeachsquaremeterforeachfloorsectionprovidedit does not exceed LL 100,000 (approximately US $ 65) for each floorsection. 1% of the purchase price for each square meter of land exceeding LL 100,000,orUS$67 1.5%ofthepurchasepriceforeachsquaremeterofland,ifsuchprice doesnotexceedLL25,000,equivalentapproximatelytoUS$17. 2% of the purchase price for each square meter of land if such price rangesbetweenLL25,000andLL100,000,orUS$17andUS$67. ThefeespaidtotheMunicipalityare:

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FeespaidtotheOrderofArchitectsandEngineers: - 5%ofthebuildingpermitsfeespaidtotheMunicipality. 7. Contracts - Can the investor freely enter into local contracts? Yes,theinvestorcanfreelyenterintolocalcontracts. - Can the contracts be governed by the law of another country? Yes,thecontractscanbegovernedbythelawofanothercountry,butemploymentcontracts shouldbemandatorilygovernedbytheLebaneselaw. Moreover, the parties to an agency/exclusive distribution agreement cannot submit their contracttoaforeignlawtogovernmattersspecificallyregulatedbytheDecreeLaw34/67of August 5, 1967 governing commercial agencies in Lebanon which are considered of public policysuchastheprovisionsgoverningtheterminationandnonrenewalcompensation. 8. Price Controls - Are there applicable price controls? Generallynot,butpursuanttoarticle7ofDecreelawno73datedSeptember9,1983related to the purchase and trading of goods and products, for the sale of goods and products for whichthemaximumsalepriceorpercentageofthesaleprofitaredetermined,thesaleprice maynotexceeddoublethecostprice. Moreover, there are price controls mechanisms pursuant to antidumping laws, antifraud regulations,andinrelationtosomefooditems.
9. Product Registration - Must the entity register its product?

No,butincertaincases,thedeclaration(andnotregistration)totheMinistryofEconomyand Tradeofsomeproductsismandatory.
- If so, how is registration obtained? - How long does the process take? - Are there fees involved?

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10. Reduction or Return on Capital - Can capital be repatriated while the corporation is still ongoing?

Yes, subject to the capitalization requirements applicable to specific businesses such as insurers,banksandfinancialservicescompanies.
11. Sale of Goods - Are there restrictions on the manner, time or place of sale of goods?

Therearenorestrictionsassuch,butthemanner,timeorplaceofsaleofgoodsareregulated bydifferentlawsandorganizedbyregulationsissuedbytheMinistryofEconomyandTrade.
12. Trade Associations - Are there trade associations the investor can or must join?

Therearenotradeassociationsthattheinvestormustjoin,buthecanjointheChamberof CommerceandIndustry.
- If so, are there fees involved?

Thefeesareapproximately700,000LBP.
- Are there mandatory trade practices?

Therearenomandatorytradepractices.
X. CESSATION OR TERMINATION OF BUSINESS 1. Termination - What are the tax consequences of terminating the business?

Alltaxesduebythebusinessmustbepaidupontermination.
- What costs are involved in termination?

Costsinvolvedinterminationdependontheformofthecompanyandamountofthecapital andthesizeofthebusiness.
- How long does it take to terminate the business?

Thedurationdependsonthecomplexityoftheprocedureregardingtheformandsizeofthe company.
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- How is the investor's particular form of business treated in termination?

The procedure of termination is the same in principle, but in practice its length and complexitydependontheinvestorsparticularformofbusiness.
- Can the business be terminated without government approval or intervention?

Yes, the business can be terminated without government approval or intervention save for somekindofactivitiessuchasinsurance,bankingandotherlegalentitieslistedintheCentral Banklistssuchasfinancialinstitutions,brokeragefirmsetc
- What are the obligations toward creditors, employees and others upon termination?

Upontermination,creditorsmustbepaidbackandemployeesmustreceivealltheirduesand compensation.Inthisrespect,employeesendofserviceindemnityispayabletothembythe NationalSocialSecurityFundtowhomtheemployerpaidtherelevantcontributionsforeach employeeduringhisemploymentperiod.

- What are the tax consequences of termination?

There are no specific tax consequences except that all taxes that are due by the business mustbepaidupontermination.
2. Insolvency/Bankruptcy - What is the extent of the investor's liability in the event of insolvency or bankruptcy?

Theextentoftheinvestorsliabilityintheeventofinsolvencyorbankruptcydependsonthe formofthecompany:ifitisapartnership,hewillberesponsibleonhispersonalassets;ifitis ajointstockcompanyoralimitedliabilitycompany,hewouldnotberesponsiblebeyondhis contributiontothecapital.

- What choices, if any, are available to the investor with regard to the restructuring of the business?

Therearenorestructuringoptionsprovidedforbylaw.

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XI. LABOR LEGISLATION, RELATION, AND SUPPLY 1. Employer/Employee Relations - What laws govern employer/employee relations?

The laws that govern the employer/employee relations are mainly the Labor Code of September23,1946andtheSocialSecurityLawissuedbydecreeno.13955ofSeptember26, 1963,inadditiontotheWorkRelatedInjuryDecreeLawno.136datedSeptember16,1983.
- Are there obligations to train employees?

Theemployerhastheobligationtotrainemployeestotheprofession,artorcraftworkthey werehiredfor.Attheendofthetraining,acertificateofabilityisdeliveredtotheemployee. Suchobligationisnotstrictlyimplementedinpractice.

2. Employment Regulations - Must the investor hire nationals of the country?

Pursuant to the Ministerial Decision no. 94/1 issued by the Minister of Labor on May 24, 2008,certainemployeespositionsarereservedtoLebanesenationalsandthereforenowork permitsaregrantedtoforeignemployeesforsuchpositions. These positions relate to administrative and banking occupations and include managerial positions,salesandmarketingrepresentatives,businessconsultants,computeroperatorsand engineers,nursingandotherjobs,unlesstheforeignemployeesspecializationorexpertiseis not available locally, in which case he would be granted a work permit subject to certain conditions(suchaspublishingajobofferinlocalnewspapers). Inaddition,theserestrictionsdonotapplyto(i)foreigncitizenswhohaveaLebanesemother oramotherofLebaneseoriginor(ii)whohavebeenmarriedtoaLebaneseformorethan oneyearor(iii)whoareresidinginLebanonsincetheywerebornor(iv)whoaremanagersor representatives of a foreign company registered in Lebanon and provided that the State of whichtheforeignerisacitizenallowsLebanesetocarryouttheworktheforeignerintendsto performinLebanon. Moreover,foreachforeignemployee,theemployermustemploythreeLebanesenationals. Suchconditionisnotalwaysstrictlyapplied.
- Is there a minimum wage?

Yes.TheminimumwageisfixedbyDecreeatLL500,000(approximatelyUS$334).
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- Is there a maximum number of hours an employee can work each week?

UndertherelevantprovisionsoftheLebaneseLaborCode,themaximumworkinghoursfor adults(menandwomen)is48hoursperweek.Thisdoesnotincludebreakperiods. Thebreakperiodconsistsofanhourofrestformaleemployeeseverysixhoursofworkand forfemaleseveryfivehours. Employeesshouldbenefitofaconsecutivebreakperiodofninehoursforevery24hoursof work.Also,theymustbenefit,weekly,fromanuninterruptedbreakof36hours. Moreover, employers can, in certain exceptional circumstances and due to major business requirements, request from their employees to work for a maximum of 10 hours a day, providedtheMinistryofLaborisinformedwithin24hours. Overtimehourssalarymustexceedby50%theregularsalary.Iftheemployerhastowork during the 36 uninterrupted weekly break mentioned above, he has the right to rest for a similarperiod.AscheduleofworkinghoursshouldbenotifiedtotheMinistryofLaborand displayedattheworkingplace. Workinghourscanbeincreasedupto12hoursadaybydecisionoftheMinisterofEconomy provided notice is given to Social Affairs Service within 24 hours (with 50% additional paymentpereachadditionalhour).
- Is there a minimum number of vacation and sick days to be given?

Yesthereis,asfollows: AnnualLeaves: Everyemployeeisentitledtoafullypaidannualleaveof15workingdaysprovidedhe/she hasbeenemployedbythesameemployerforatleastoneyear. Accordingtoconventionno.52oftheInternationallaborOrganizationonpaidannualleaves andwhichhasbeenratifiedbytheLebaneseauthorities,theannualleavemustbeincreased in proportion to the number of years of employment. The Ministry of Labor applies the increasedleaveasfollows: PeriodofEmployment Annualleave From1to5years From5to10years From10to15years Above15years

15workingdays 17workingdays 19workingdays 20workingdays

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 SickLeaves: Employeeswhohavebeenworkingforthesameentityforaperiodexceedingtheprobation period(threemonths)areentitledtopaidsickleavesasfollows: Fullsalary andHalfsalary Employmentyears 3monthsto2years month month 2yearsto4years 1month 1month 4yearsto6years 1month 1month 6yearsto10years 2month 2month Above10years 2month 2month Sickleaveisgrantedpursuanttoamedicalreport.Whenthesickleaveexceedsonemonth, theemployerisentitledtoreducetheemployeesannualleaveto8daysinsteadof15days. 3. Hiring and Firing Requirements
- Must the investor employ a minimum number of people?

Thereisnoobligationontheemployertoemployaminimumnumberofpeople.
- Must the investor employ a minimum number of nationals?

Pleaserefertoourresponsetothefirstquestionofpart2above.
- Must certain positions in the company be held by nationals?

Pleaserefertoourresponsetothefirstquestionofpart2above.
- Are there rules to follow in hiring/dismissing personnel (e.g. notice)?

AccordingtotheLebaneseLaborCode,eachoftheemployersandemployeesareentitledto terminate the employment contract entered into for an indefinite period of time, provided onegivestheotherpartywrittennoticeoftermination.Thelengthofnoticeisspecifiedby law and cannot be reduced. It varies with the length of the duration of employment as follows: Priornotice Durationofemployment 1monthpriornotice Lessthan3yearsofemployment 2monthspriornotice 3to6yearsofemployment 3monthspriornotice 6to12yearsofemployment 4monthspriornotice Morethan12yearsofemployment
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 Ifthecausesofterminationarenotstatedclearlyinthenotice,theemployeeisentitledto asktheemployertoclarifythereasonsforthedismissal.Theemployersanswerwillenable theemployeetodeterminewhethertofileanunfairdismissalclaimornot. Theemployerisnotboundtohavetheemployeecarryonworkingduringthenoticeperiod. Theonlylegalobligationontheemployeristopaytheapplicablewagesduringthattime( payinlieuofnotice). Moreover,theterminationnoticemustnotbeservedduringtheannualleave,thematernity leave,thesickleaveandotherleavesprovidedforintheLaborCode,aswellastopregnant employees. This restriction does not apply if the employee is hired by another employer duringthesaidleaves. Employment contracts entered into for a determined period of time cannot be terminated prior to their expiry date, except by mutual agreement between the employer and the employee, and/or if such early termination is provided for in the contract and along the provisionsofsuchcontract.
- Does the investor have an continuing obligation towards dismissed employees?

No,exceptforthesettlingalltheemployeesstatutoryadcontractualentitlements,in additiontotheobligationofsettlingtotheNationalSocialSecurityFundthebalanceof contributionsdueinfavortheterminatedemployeetotheEndofServiceIndemnityBranch atsuchFund.

4. Labor Availability - Is adequate skilled or unskilled labor available for the anticipated business?

AdequateskilledlaborisavailablealmostforeverykindofbusinessinLebanon.
5. Labor Permits - Are labor permits required?

Yes,laborpermitsarerequiredtoenableforeignerstoworkinLebanon.

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- If so, how are they obtained?

Permitsforforeignemployeesincludethefollowingformalities: a Apreliminaryletterofapproval: A preliminary letter of approval is to be first delivered upon the employees and/or employersrequestbytheMinisterofLabor. The following documents must be enclosed to the preliminary letter of approvals request: Copyoftheforeignerspassportvalidforatleast18months,copyoftheemployersidentity card, the incorporation documents of the employer if it is a legal entity, the employees academiccertificateandCV,theregistrationcertificateoftheemployerifitisalegalentityat theMinistryofLabor,adocumentsignedbytheemployerinwhichthislatterundertakesto (i)declareandregistertheemployeeattheNationalSocialSecurityFundand(ii)toenterinto an employment contract with the employee pursuant to which the salary and benefits grantedtosaidemployeearespecificallydetermined. b Priorauthorization: Aftergettingthepreliminaryletterofapproval,theforeignemployeemustobtainfromthe MinistryofLaborapriorauthorization.Anapplicationformsignedbytheemployershouldbe submittedtotheMinistryofLaborinthatpurposeenclosedwithabankguaranteefromthe BanquedelHabitatamountingtoLL/1,500,000/orUS$1,000(theamountofsuchguarantee is refunded when the work permit is terminated and the employee leaves the country), in additiontootherdocumentssimilartothedocumentssubmittedforthepreliminaryletterof approval. TheMinistryofLaborstudiestheapplicationanddecideswhetherornottogranttheprior authorization. If the area of specialization of the foreign employee can be covered by Lebanesenationals,thepriorauthorizationwillnotbegranted. c Laborvisa: Once the prior authorization is obtained, the employer must apply to the Sret Gnrale (National Security Services) for a labor visa to enable the employer to enter the Lebanese territory.SuchlaborvisaisstampedontheemployeespassportattheInternationalAirport of Beirut. Specific documents, together with the prior authorization and a notarized undertakingaddressedtotheSretGnralesignedinLebanonbytheemployer,mustbe enclosedtothelaborvisaapplication.
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d Workpermit: Once the employee enters the Lebanese territory pursuant to the labor visa, the employer must apply for the employees work permit. Specific documents should be enclosed to the workpermitsapplicationsuchasanotarizedemploymentcontract,medicalinsurancepolicy, medicaltests,etc. e Residencypermit: Once the work permit is obtained, the residency permit is issued by the Sret Gnrale subjecttothefilingbytheemployersoftherelevantapplicationanddocumentation. Workandresidencypermitsaregrantedforaperiodofoneyearonlyandmustberenewed yearly. - How long does the process take? Generally,theprocesstakesapproximatelythreemonths.
- What fees are involved?

Governmentalfeesforobtainingworkandresidencypermitsforaforeignemployeecanbe summarizedasfollows: - US$1,000:Bankguarantee. - US$400:Priorauthorizationfee. - US$150:Laborvisafee. - US$1,200:Workpermitfee. - US$1,200:Residencypermitfee. - US$150:Insurancepolicycosts. - US$350:Stampsandsundries. - Inadditionto3stampdutyand2notarizationcostsincludingthebarsfees calculatedproratatothesalary. 6. Safety Standards
- Are there safety codes which must be followed?

Yes, Decree no. 11802 dated January 30, 2004 regulates and organizes professional prevention, safety and health. In addition, there are different and multiple safety and preventionrulesrelatedtospecifictypesofactivities.

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7. Unions - Are unions recognized?

Yes, syndicates and their unions are recognized under Lebanese law. They are formed pursuanttoalicensebytheMinistryofLabor.
- What are the unions in the investor's business?

Syndicatesandunionsaimatprotecting,encouragingandimprovingtheprofession,aswell asdefendingtheinterestsofthemembers.
- What are these unions' political affiliations, if any?

Unionsandsyndicatesareprohibitedfromhavingpoliticalaffiliations.
- Is there an obligation on the part of the employer to organize unions?

No.
- Are there mandatory collective bargaining agreements for the business involved?

TherearecollectivebargainingagreementsinseveralsectorsinLebanon(suchasthebanking sector). Thereisnoobligationtohavesuchagreements,butonceacollectivebargainingagreementis made, it can be extended to all the employees of the business by decision of Minister of Labor pursuant to a favorable proposal of the Higher Committee For Collective Bargaining Agreements provided for in the Labor Code. In that case, it becomes mandatory for all the employeesandemployersofthesamesector. XII. TAX ON CORPORATIONS 1. Allowances - What are the major allowances (e.g. capital cost depreciation)? N/A. - What are the major deductible items? Thetaxappliestothenetincome;therefore,expensesandchargesaredeductiblefromthe gross income, such as costs of goods and merchandise, leases of shops and offices, salaries andwagesofemployees,interestofloansenteredforbusinesspurposes,etc.
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- What are the major expenses that are excluded from deductibility? N/A. 2. Calculation of Taxes - How is the taxable base determined? Tax is levied on the net income generated during the previous year. The net income is the wholeturnoverofthetaxpayerafterdeductingallchargesandexpensesdeterminedbythe law. Therearethreetaxassessmentmethods: Theactualprofitmethod(mainlyforjointstockcompanies,limitedliabilitycompanies andpartnershipslimitedbyshares). Thelumpsumprofitmethod,and Theestimatedprofitmethod. 3. Capital Gains - What are the federal or national tax rates on capital gains? The(national)taxoncapitalgains(namedtaxovermoveableassetsreturns)is:10% - What are the regional or state taxes on capital gains? N/A. - What are the municipal or local taxes on capital gains? N/A. 4. Filing and Payment Requirements - When must the corporation file its tax return, if any? Forjointstockcompanies,limitedliabilitycompaniesandpartnershipslimitedbyshares(for active partners) the tax return should be filed before the 1st of June of each year. For sleepingpartnerships,thetaxreturnisfiledbeforethe1stofApril.

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- When must the corporation pay its taxes? Thecorporationmustpayitstaxeswhenfilingthetaxreturn. - Are taxes paid in installments or annually? Theincometaxispaidannually. 5. Miscellaneous Taxes Due - Is there a tax on capital? BesidesthetaxoncapitalgainsmentionedunderSectionXII(3)above,thereisnospecifictax on the capital of a corporation. There is a 3 stamp duty on the capital that applies upon incorporationofacompanyanditscapitalincreases. ForHoldingcompanies,thereisataxoncapitalpleaserefertoSectionXII(10). - Is there a business license tax? No. - Is there an apprenticeship tax? No. - Is there a training tax? No. - Are there other taxes? Companiesthataresubjecttotheactualprofitmethodmustreassesstheirfixedassetsevery fiveyears.Incaseofbetterment,a10%taxapplies. Also, a 15% betterment tax applies in case of a gain generated from the assignment of a companysfixedassets. Thereisalsothestampduty: On contracts (on each original copy), deeds, undertakings to pay, and other specific documents:3
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 Oncommercialbills:1.5 - What are the filing and payment requirements? Thefilingissubmittedbyanyrepresentativeofthecompanyinquestion.Thecalculationof thetaxiscarriedoutbyacertifiedaccountant. 6. Registration Duties - Are there registration duties due upon the incorporation of a company? Yes,thereareregistrationdutiesdueupontheincorporationofacompany.Pleasereferto SectionVII. - Are there registration duties due upon an increase in capital? Yes.PleaserefertoSectionVII. - Are there registration duties due upon the transfer of the company's shares? Yes, there are registration duties due upon the transfer of the shares of a limited liability companybecausethetransferofsharesmustbedonepursuanttoanotarizedsharestransfer agreementthatisregisteredattheCommercialRegister,whichisnotthecaseforthetransfer ofsharesofajointstockcompany. - Are there registration duties due upon a transfer of corporate assets? Yes,thereareregistrationdutiesdueiftheassetisaproperty(insuchcasetheconveyance fee is 5%, in addition to other minor costs), in addition to the stamp duty and notarization duties over the relevant transfer contract. Registration duties also apply for certain assets suchasvehicles. - Are there any other registration duties due? No. 7. Sales Tax or Other Turnover Tax - What is the system of sales tax (e.g. V.A.T., cumulative)? V.A.T.:Appliedasof1stofFebruary2002.

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- Is input tax creditable against output tax? Yes. - What are the tax rates? TherateoftheV.A.T.is10%.Therearealsootherdifferentsalestaxes(suchasthe5%over foodandbeverages)thatonlyapplypresentlytosmallrestaurantsandmotelbusinessesthat arenotsubjecttoVATduetotheirsmallturnover. - What are the filing and payment requirements? PaymentoftheV.A.Tismadequarterlypriortothe20thofthemonthfollowingthequarterin question. 8. Social Security and Welfare System Contributions - Are social security contributions due? Yes,socialsecuritycontributionsaredue. - Are retirement or pension contributions due? ThereareendofserviceindemnitycontributionspayablebyemployerstotheNationalSocial SecurityFund. - Are unemployment insurance contributions due? Thereisnounemploymentinsurance. - What are the filing and payment requirements for any such contribution? Thesocialsecuritycontributionsareasfollows: Branches Sicknessand maternity Familyallowances EndofServices Employees Contributions 2% 0% 0% Employers Contributions 7% 6% 8.5% Capped monthlySalary LL1,500,000 LL1,500,000 Overthefull salary,withno cap.

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The social security contributions filing and payment are made quarterly if the number of employeesislessthantenandmonthlyifitexceedsten. 9. Special Tax Schemes - Are there particular tax consequences of doing business in the country? No. 10. Tax on Profits - What are the federal or national income tax rates on profits? The(national)incometaxonprofitsforcorporations(jointstockcompanies,limitedliability companies, including branches of foreign companies, as well as to partnerships limited by shares,foractivepartners)is15%. Forsleepingpartnerships,theincometaxtobepaidbythepartnersisasfollows: TaxableIncome Rate 0LL9,000,000 4% LL9,000,000LL24,000,000 7% LL24,000,000LL54,000,000 12% LL54,000,000LL104,000,000 16% AboveLL104,000,000 21% TherearespecialtaxexemptionsforOffshoreandHoldingcompanies,asfollows: Offshorecompaniesareexemptedfromthetaxonprofits.TheyaresubjecttoaLL1,000,000 lump sum tax. They also benefit from other tax exemptions determined by the relevant regulationsthatgovernsuchformofcompanies. TheincometaxforHoldingcompaniesisasfollows: 6% on the portion of the Holding companys capital and the reserve funds up to LL 50,000,000. 4%ontheportionofthecompanyscapitalandthereservefundsfallingbetweenLL 50,000,000andLL80,000,000. 2% on the portion exceeding LL 80,000,000, provided the overall tax of a Holding companydoesnotexceedLL5,000,000. AHoldingcompanyisalsosubjecttospecifictaxesprovidedforbytherelevantregulations.
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 - What are the regional or state tax rates on profits? N/A. - What are the municipal or local tax rates on profits? N/A. 11. Tax Treaties - Are there any applicable tax treaties? Yes,withAlgeria,Armenia,Bahrain,Belarus,Bulgaria,Cuba(notenforcedyet),Cyprus,Czech Republic, Egypt, France, Gabon (not enforced yet), Iran, Italy (not enforced yet), Jordan, Kuwait,Malaysia,Malta,Morocco,Pakistan,Poland,Qatar,Romania,Russia,Senegal,Sudan (notenforcedyet),SultanateofOman,Syria,Tunisia,Turkey,U.A.E.UkraineandYemen. - Are there any rules against treaty-shopping? No. 12. Territoriality Rules - Where is the corporation subject to tax? ThecorporationissubjecttotaxonprofitsgeneratedinLebanon. - Is the corporation subject to tax on its worldwide income? No, however, in practice if a Lebanese corporation carries out activities outside Lebanon (without having a duly registered branch outside Lebanon), it should declare the relevant profitstotheMinistryofFinance. 13. Treatment of Tax Losses - How are corporate tax losses treated? N/A. 14. Wealth Tax - Is there an applicable wealth tax? N/A.
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15. Withholding Taxes - What are the rates of withholding tax on dividends? Dividends: 10%. This tax over dividends of a joint stock company is reduced to 5% in specificcasesdeterminedbytheIncomeTaxLaw. Dividendsdistributedinrelationtoforeignsharesandbondsownedbyentitiesorindividuals residinginLebanonarealsosubjecttoa10%withholdingtax. ForeigncorporationshavingbranchesinLebanonaresubjecttoa10%taxoverdividendsfor profitsmadeinLebanon.Such10%appliesafterdeductingthe15%incometax. OffshoreandHoldingcompaniesareexemptedfromtaxondividendsdistributions. - What are the rates of withholding tax on royalties? Royaltiespaidtoalocaljointstockcompanyortoalimitedliabilitycompanyformapartof its income and thus fall under the income tax over the companys net profits, as per the currentlyapplicableinstructionsoftheMinistryofFinance. ProfitsgeneratedbyHoldingcompaniesasaresultofleasingpatentstoresidentinstitutions aresubjecttoa10%tax. - What are the rates of withholding tax on interest? 5% - What are the rates of withholding tax on profits realized by a foreign corporation? IfaforeigncorporationhasabranchinLebanon,itwouldbesubjecttoa15%taxonprofits andthe10%taxondividends(pleaserefertoSectionXII(15)above. Payments to nonresident corporations for services rendered are subject to a: 7.5% withholdingtax. Payments to nonresident corporations for goods sold are subject to a: 2.25% withholding tax.

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XIII. TAX ON INDIVIDUALS 1. Allowances - What are the major allowances? Therearenoallowancesfromataxviewpoint.Therearedeductionsasfollows: Forindividuals:LL7,500,000,inadditiontoLL2,500,000formarriedtaxpayersandLL500,000 foreverychild(upto5). 2. Calculation of Taxes - How is the taxable base determined? ThetaxbaseiscalculatedoverthenetincomegeneratedinLebanon.Thenetincomeisthe wholeturnoverafterdeductingallchargesandexpensesspecifiedbylaw. Taxratesoverincomegeneratedfromcommercial,noncommercialandindustrialactivities areasfollows: Rate TaxableIncome 0LL9,000,000 4% LL9,000,000LL24,000,000 7% LL24,000,000LL54,000,000 12% LL54,000,000LL104,000,000 16% AboveLL104,000,000 21% 3. Capital Gains Tax - Are capital gains taxable? Yes(10%). 4. Filing and Payment Requirements - When must the individual file a tax return, if any? The tax return must be filed prior to the 1stof February of each year for individuals paying underthelumpsumprofitmethod,andpriortothe1stofAprilforindividualshavingchosen theactualprofitmethod. - When must the individual pay his taxes? Uponfilingthetaxreturnasabove.
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5. Inheritance and Gift Tax - Does the individuals' presence in the country subject him to inheritance or gift tax? Yes. - What kind of assets are subject to tax? Allkindsofassets. - What are the tax rates? Taxratesvarybetween3%and45%dependingonthemonetaryvalueoftheestateandthe relationshiptothedeceased,asindicatedbelow: Second Third Fourth Fifth First category category category category category Taxable Spouseand Parents Brothers Uncles, Others amountsinLL children andsisters aunts, nephews, nieces Lessthan 3% 6% 9% 12% 16% 30million 3060 5% 9% 12% 16% 21% million 60100 7% 12% 16% 21% 27% million 100200 10% 16% 20% 26% 33% million 200350 12% 18% 24% 31% 39% million Morethan 12% 18% 24% 36% 45% 350million in addition to a fixed tax of 5 of the gross amount of the inheritance exceeding LL 40,000,000. - Are allowances available? Therearedeductionsasfollows: Forspouses,childrenandparents,theamountthatdoesnotexceedLL40,000,000.
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For sisters, brothers and ascendants other than parents, the amount that does not exceedLL16,000,000. Forothers,theamountthatdoesnotexceedLL8,000,000.

- What are the payment and filing requirements? Filing requirements, involve the submission of documents identifying the legal heirs or legatees and the assets forming the estate and their value. Such value is verified by the MinistryofFinance.Theinheritancetaxmaybesettledinonepaymentorbyinstallments. 6. Miscellaneous Taxes Due - What are the miscellaneous taxes to which the individual may be subject? Individuals(andentities)aresubjecttothebuiltpropertytax,aswellastotheMunicipaltax (overbuiltpropertiesusedasresidencesandforbusiness). - What are the filing and payment requirements? WhennetrevenuesexceedLL20,000,000,thetaxpayermustfilehistaxreturnandpaythe taxpriorto1stofAprilofeachyear.Forpropertiesgeneratingrevenuesbelowsuchamount, paymentisdonewithintwomonthsasofwhentheMinistryofFinanceissuesthepayment ordersandpublishesthemintheOfficialGazette.Individualscanbeexemptedfromthistax foruptotwoplacesofresidencewithintheLebaneseterritory. TheMunicipaltaxispaidwithintwomonthsasofwhentheMunicipalityissuesthepayment ordersandpublishesthemintheOfficialGazette. 7. Real Estate/Habitation Tax - Is the individual subject to real estate or habitation tax? Yes,theindividualissubjecttobuiltpropertyandtoMunicipaltaxes. The built property tax is as follows 0LL20,000,000 LL20,000,000LL40,000,000 LL40,000,000LL60,000,000 LL60,000,000LL100,000,000 AboveLL100,000,000 4% 6% 8% 11% 14%

The Municipal tax is 8.5% for a commercial property and 6.5% for property used as a residence.
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 8. Sales Tax - Does the individual pay sales tax? IndividualspayVAT. 9. Social Security and Welfare System Contributions - Are contributions to social security due? SocialSecurityContributionsaredue.Theyareasfollows: Branches Employers Employees Contributions Contributions Sicknessandmaternity Familyallowances EndofServices 2% 0% 0% 7% 6% 8.5%

Cappedmonthly salary LL1,500,000 LL1,500,000 Applicabletothe fullsalarywithno cap.

- Are contributions to the welfare system due? N/A. - If so, what are the payment and filing requirements? 10. Stock Option, Profit Sharing and Savings Plans - Is there taxation of stock option plans? Yes,atarateof10%. - Is there taxation of profit sharing plans? Yes,atarateof10%. - Is there taxation of savings plans? N/A.

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11. Taxation of Benefits In Kind - What is the rate of taxation on benefits in kind (e.g. automobile, housing and utilities, education, etc.)? Benefitsinkind(uptoamountsdeterminedbyDecreesforeachformofsuchbenefits,mainly transportationcostsandschoolallowances)aretaxexempt.Theexcessisdeemedaspartof thesalaryandisthussubjecttothetaxonsalariesandwages. 12. Taxes on Dividends - Are dividends taxable regardless of their form? Yes,dividendsaretaxableregardlessoftheirform. 13. Tax on Income - What are the federal or national tax rates on income for residents? The(national)taxratesarethefollowing: TaxableIncome 0LL9,000,000 LL9,000,000LL24,000,000 LL24,000,000LL54,000,000 LL54,000,000LL104,000,000 AboveLL104,000,000 - What are the regional or state tax rates on income for residents? N/A. - What are the municipal or local tax rates on income for residents? N/A. 14. Tax Treaties - Are there any applicable tax treaties? Yes(pleaserefertoSectionXII(11)above).

Rate 4% 7% 12% 16% 21%

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- Are there any rules against treaty-shopping? No. 15. Territoriality Rules - Where is the individual subject to tax? TheindividualissubjecttotaxonhisincomeearnedinLebanon(territorialityprinciple). - Is the individual subject to tax on his worldwide income? Theindividualisnotsubjecttotaxonhisworldwideincome. 16. Wealth Tax N/A. - Is the individual subject to tax based upon his wealth? No. - If so, what are the rates? - Are there any allowances available? - What are the payment and filing requirements? 17. Withholding Tax - Is salary subject to a withholding tax at the source? Yes,thesalaryissubjecttoawithholdingtaxatsource. Taxratesonsalariesandwagesareasfollows: TaxableIncome 0LL6,000,000 LL6,000,000LL15,000,000 LL15,000,000LL30,000,000 LL30,000,000LL60,000,000 LL60,000,000LL120,000,000 AboveLL120,000,000
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Rate 2% 4% 7% 11% 15% 20%

 Thetaxreturniswithheldandfiledbytheemployerquarterlybeforethe15thofthemonth followingthequarterinquestion. - What is the treatment of residents as compared to non- residents? Residents(whethercorporationsorindividuals)paytheirtaxasmentionedabove,mainly underSectionXII(10)andSectionXIII(2).Nonresidentsaresubjecttothefollowingtaxes,to bewithheldbytheresidentpayer: Paymentstononresidentsforservicesrendered:7.5% Paymentstononresidentsforgoodssold: 2.25% This applies also to local corporations making payments to nonresident entities or individuals. XIV. TAX ON OTHER LEGAL BODIES Mainly civil companies where the partners pay the same tax as individuals (under Section XIII(2) above). Civil companies also pay social security contributions on their employees salariesandwithholdthetaxontheirsalariestoo(asperSectionXIII(9)and(17)above).If thecivilcompanyownsoroccupiesbuiltproperties,therelevanttaxesshouldalsobepaid,as applicable(SectionXIII(7)above,refers). Representative offices of foreign companies are tax exempted. Representative offices pay social security contributions on their employees salaries and withhold the tax on their salaries too (as per Section XIII (9) and (17) above). If the Representative office owns or occupiesbuiltproperties,therelevanttaxesshouldalsobepaid,asapplicable(SectionXIII(7) above,refers). Nonprofitorganizationsaretaxexempt,saveforthepaymentofsocialsecuritycontributions onbehalfoftheiremployeesandthewithholdingofthetaxontheirsalaries. Nonprofit organizations that are specifically determined by Decrees are exempted from Municipal tax. They are also exempted from the built property tax (provided specific conditionsaremet). Although tax exempt, the above legal bodies must file annual tax return to the Ministry of Finance.

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XV. GENERAL TAX CONSIDERATIONS 1. Taxes Generally - Is there a generally accepted way of structuring the company or other entity so as to insure the desired tax consequences? No. - Is there an advance tax ruling that can be used to validate or invalidate the chosen form of doing business? No. - Is there a general anti tax avoidance system? Yes, there are control and verification rules. - Can the chosen form of business be treated as different form for tax purposes? No,exceptforholdingandoffshorecompaniesthatviolatetheirgoverningregulations,in wishcasetheycouldbedeemedasstandardjointstockcompaniesfortaxpurposes.
XVI. IMMIGRATION REQUIREMENTS 1. Immigration Controls

- Are there immigration quotas?

No.
- Are vaccinations required?

Therearenovaccinationsrequired.
- Are medical certificates required?

No.
- Are entry permits required?

Entry visas are required, except for nationals of a limited number of countries in line with bilateralagreements.
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- If so, must you apply for an entry permit before entering the country?

Yes.
- Are exit permits required?

Exitpermitsarenotrequired.
- Are re-entry permits required?

Anewvisamustbeobtainedeachtime.
2. Immigration Requirements/Formalities - Is a residence permit required?

AresidencepermitisrequiredforforeignerswhointendtoresideorworkinLebanon.
- If so, does the investor have to apply for one before entering the country?

Theinvestorcanenterthecountrywithanentryvisa.Hewillthenneedaresidencypermitif heintendstostayorworkinLebanon.
- What information must be supplied to the immigration authorities?

N/A
- How long does it take to receive authorization?

N/A
3. Visas - Is a visa required for travel or stay in the country?

Yes, a visa is required to enter the country except for nationals of a limited number of countriesinlinewithbilateralagreements.
- If so, for how long is the visa valid? Thevisacanbegrantedforamaximumofsixmonths.Visascanberenewed. - How does the investor apply for a visa?

TheinvestorappliesforavisaattheLebaneseEmbassyorConsulateinhiscountryoforigin. SomenationalitiescanobtainavisaattheBeirutInternationalAirport.
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- What documents are required?

Requirements vary pursuant to the nationality of the applicant and depending on the purposeofthevisit.
- How long does it take to receive a visa?

Generally,notmorethan10to15days.
- What fees are involved?

The fees are LL 50,000 (approximately US $ 33) for a visa exceeding two weeks, LL 25,000 (approximatelyUS$16)fora15dayvisa,andLL100,000(approximatelyUS$66)forasix monthvisa.
XVII. EXPATRIATE EMPLOYEES 1. Cost of Living and Immigration - How does the cost of living compare to that in the investor's home country?

N/A
- What is the rate of inflation?

FromDecember2008toDecember2009,theinflationratewas3.4%.
2. Drivers' Licenses - Must the investor obtain a driver's license for that country?

Theinvestormustobtainalocaldriverslicenseoruseaninternationaldriverslicense.
- How does the investor obtain a driver's license?

By passing practical and oral exams, and applying to the Department of Car Registration at theMinistryofInterior.
- What fees are involved?

ThefeesareapproximatelyLL260,000(approximatelyUS$172).

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- Is an examination, either practical or written, required?

Practicalandoralexamsarerequired.
3. Education - What type of schools are available for the investor's family?

Private(French,American,German,missionaryschools)andPublicschoolsareavailable.
- What fees are involved?

FeesvarybetweenUS$3,000toUS$6,000peryear.
- What is required for enrollment?

Generally, identification documents are required, in addition to the applicants previous schoolrecordsthathavetobesubmittedtotheMinistryofEducation.
- Can the investor or company receive a tax benefit?

N/A.
4. Housing - What type of housing is available for the investor?

Varioustypesofhousingareavailable,dependingontheinvestorsbudget.
- Can the investor own property?

The investor can own property with a surface area not exceeding three thousand square meters.
- Must the investor have housing before he enters the country?

No.
- Can the investor subsidize housing and receive a tax benefit?

No.

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5. Importing Personal Possessions - How can the investor import his personal belongings?

Theinvestorcanimporthispersonalbelongingsthroughanymeansoftransportation.
- Are import duties payable?

If the investor has a work permit or a residency permit, there are no import duties. If the investor does not have a work permit or a residency permit, he has to submit a bank guaranteeuntilhegetssuchpermits.
- Are there requirements for clearing the belongings through customs?

There are no specific requirements in this respect, except that the investor must submit eitherhisworkorresidencypermitorthebankguarantee.
6. Medical Care - What level of medical care is available?

Medicalcareuptointernationalrecognizedstandardsisavailable.
- Is there national health care?

No.
7. Moving Costs - What costs are involved in moving?

N/A
- Can the investor receive any tax allowances?

PleaserefertoSectionXIIandXIII.
8. Tax Liability - What is the expatriate's tax liability?

PleaserefertoSectionXIII.

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- What are the allowances?

PleaserefertoSectionXII.
- Are there any applicable tax treaties?

PleaserefertoSectionXII.11.
9. Work Contracts - Does the investor need a work contract to work in the country?

Yes.
- If so, does the contract have to be for a certain duration, for the performance of a specific job or for a specific position?

Generally,itisdoneforoneyear,renewable,foraspecificposition.
- Does the contract have to be with a national or resident of the country or related state?

PleaserefertoSectionXI.2andXI.3.
10. Work Permits - Does the investor need a work permit to work in the country?

Yes,seeresponseunderXI.5.
- How and where does the investor apply for the permit?

InvestormustapplyfortheworkpermitattheMinistryofLaborandmustobtainaprior authorizationbeforeproceedingwiththeworkpermitformalities.
- What documents are required? Copyofthepassport AnotarizedemploymentcontracttobesignedinLebanon.Iftheforeigninvestorisa branch manager, a corporate resolution appointing him as branch manager is required. Threephotosoftheemployee/branchmanager. Medicaltests Insurance.
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- What fees are involved?

ThefeesforobtainingthepriorauthorizationareLL600,000(US$400)andLL1,800,000(US$ 1,200). - How long does it take to receive the permit? Onetotwomonths.
- For how long is the permit valid?

Workpermitsarevalidforoneyearandtheyarerenewableforsimilarterms.

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