The ITC (information technology) industry in Lebanon is growing at a rapid rate, having a market size of USD 436.2 million in 2016 and being expected to increase to USD 543.5 million by 2019. This industry has been increasing at a compounded yearly rate of 7% between 2014 and 2016, being projected to rise by 9.7% from 2016 to 2019. As follows, our company formation agents in Lebanon provide a brief guide on how to start an IT company in Lebanon.
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Choosing a legal entity in Lebanon
The most popular type of legal entity in Lebanon is the limited liability company (LLC), which is mostly utilized for small businesses in the country.
The minimum paid-up capital in order to open such a company in Lebanon is USD 3,400. Three shareholders are necessary to effectuate the company set up here.
An LLC in this country also has to name at least one director, who can be a foreign citizen.
An LLC in Lebanon does not have to go through a yearly audit if:
• Its share capital is smaller than USD 20,000;
• Its yearly turnover is smaller than USD 500,000.
Such a company in this country must, though, appoint a company lawyer and pay him at least the minimum annual retainer fee which is set by the Beirut Bar Association.
Main trends of the IT industry in Lebanon
The software sector in Lebanon started to develop back in the ‘70s. The industry began with only a few local businesses which provided their services and products to the large local corporations.
Since 2009, the software sector turned its attention towards mobile apps, mainly due to a large mobile phone usage of the consumers in this country.
Recent reports show that 36% of the local population owns a smartphone and that 70% of the smartphones users download apps. Our company registration consultants in Lebanon can assist entrepreneurs who are keen on setting up an IT companyin Lebanon.
Among the most popular downloads here, the gaming and entertainment apps are leading the way. These are rapidly evolving because of relatively low entry barriers.
In case you have more questions about the IT sector in Lebanon, or if you need help to set up offshore companies in Lebanon, please feel free to contact our friendly team of advisors.