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How to Start an SME Business in Lebanon Successfully

How to Start an SME Business in Lebanon Successfully

كيف تبدأ عمل ناجح ضمن الشركات الصغيرة والمتوسطة في لبنان؟

Starting a Business in Lebanon: Know the Risks

Some people embrace independence and risk-taking. They would rather open their own business than live with the comfort and stability of employment.

Studies have shown that a successful business generates more profits than a monthly salary. Yet, the risks are higher. During the first years, you will need a belt-tightening strategy. Hence, a couple of pieces of advice:

First, anyone who wishes to open a successful business in Lebanon should have a lawyer and an accountant. Ask them as many questions as possible.
Second, anticipate all the yearly overheads and charges that will incur on any business.

Of course, people often remember salaries, fees, rents, office overheads, bills, and living charges. However, they tend to forget the legal and administrative charges.

According to the nature of your business, you may have to consider several charges. These include yearly tax payments and TVA charges. One should also consider Social Security charges (Daman) and municipality fees. Custom fees may also apply if the business involves import and export trading. Finally, do not forget the yearly changes registered at the Registry of Commerce.

These charges may seem like a burden. They may also discourage any investor. However, good financial planning remains the key to a successful business. Any feasibility study should therefore consider all those numbers.

Understanding Company Types and Legal Protection

In Lebanon, there are many types of Companies. Some require at least three partners and a capital to start. There is also one type of sole proprietorship establishment.

We will go over the many types of Companies in the coming articles. They are very interesting and innovative.

Some are constructed to protect your personal patrimony from business management risks. Unfortunately, the only sole proprietorship establishment does not provide that protection. This is why we, as lawyers, will always be careful. We will consider the nature of the business before advising this kind of Company.

“One of my favorite types of Lebanese Companies is the Off-shore Company”

An Off-shore Company allows you to operate a business outside Lebanese territory. It works only with foreign Companies. Regardless of its profits, the company pays a yearly lump sum tax of one million Lebanese pounds.

Unfortunately, these companies are becoming infamous. This results from the very tight control imposed by the international banking community, especially the US. This control aims to fight money laundering. However, these companies remain the most “friendly” types of Companies.

Whatever you may have heard or read, Lebanese Companies are internationally recognized and respected. Relatively, their legal and administrative charges are among the lowest in so many countries around us.

By; Soulaima Rassi