A subsidiary company in Lebanon is a company in which another, usually larger, corporation, named the parent company, owns the majority of the shares. Being the proprietor of the subsidiary, the parent company can control the subsidiary activities.
As follows, our company formation consultants in Lebanon explain the procedure of opening a subsidiary here and other aspects related to this subject.
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Registering a subsidiary in Lebanon
The registration procedure of a subsidiary in Lebanon is quick and straightforward. The shareholders or the business partners have to:
• Sign the Articles of Association of the company in front of a Public Notary and acquit the stamp and other registration fees;
• Deposit the capital required at the bank which will issue a certificate that the capital was paid, in the cases when a minimum capital is required;
• For SAL companies and partnerships limited by shares (SARLs), the constitutive general assembly keeps a meeting to name the members of the Board of Directors or the managing partner or partners, as well as the auditor;
• The Board of Directors, if any, will appoint a Chairman;
• The business issues a commercial circular with the authorized signatories;
• The certificate of incorporation is filled in;
• The applicant files the registration demand with the Commerce Registry and brings the needed documents;
• After the company is registered, the authorized signatory can liberate the capital from the bank;
• Other steps: our Lebanon company formation advisors can offer all the necessary information on what these other steps consist of.
Liability of the parent company in Lebanon
According to the local legislation, a subsidiary in Lebanon is considered to be a separate legal entity from the parent company. Our company registration representatives in Lebanon can provide further details on this subject.
Therefore, the parent company is not liable for the debts of its subsidiary in the country. The legal responsibility of the parent company is limited to the percentage of shares it owns in the subsidiary.
If you require more information about how to open a subsidiary in Lebanon, or for help in setting up such a business entity here, please get in touch with our company formation agents in Lebanon.