The two main private company structures in Lebanon are the limited liability company (SARL) and the joint stock company (SAL), both governed by the Code of Commerce and registered with the commercial register and the Ministry of Finance. A SARL is the usual structure for smaller operations, while a SAL suits larger businesses, regulated sectors and holding structures. Foreign groups also use branches and representative offices.

Compliance involves the commercial register at the Ministry of Justice and court, the Ministry of Finance for income tax, VAT and payroll tax, the National Social Security Fund (NSSF), the Ministry of Labour, and, for foreign-owned companies, banks and the Central Bank in relation to capital and transfers. Lebanon's financial crisis has changed day-to-day banking and currency practices, and the Ministry of Finance has issued repeated deadline extensions.

This guide explains the annual cycle for a SARL or SAL, with attention to foreign-owned subsidiaries. Updated November 9, 2026. Standard dates and rates are summarised from official and professional sources, but secondary sources conflict on several points, and extensions are frequent, so confirm details with the Ministry of Finance, a Lebanese lawyer or a licensed auditor.

Entity compliance Lebanon: the quick answer

• File the annual corporate income tax declaration with the Ministry of Finance, generally by 31 May for the previous year, together with the beneficial owner declaration and the related financial statements.

• Have the financial statements audited where the law requires it, which applies to a SAL and, depending on size, to a SARL, and hold the annual general assembly.

• File VAT returns quarterly, payroll tax returns and the annual non-resident tax declaration, and pay NSSF contributions.

• Maintain the commercial register data, the company attorney appointment where required and the statutory registers.

What determines a company's compliance requirements?

The legal form, capital, activity and ownership determine the workload. A SAL must appoint auditors and hold a board and general assembly, and it is required to have at least three shareholders. A SARL can have fewer partners, with a lower capital requirement, and may be relieved from a full audit if it falls below size thresholds, although sources differ on the thresholds, so confirm what applies to your company.

Other drivers include sector licences, whether the company is a holding or offshore SAL with special rules, and whether it is eligible for investment incentives from the Investment Development Authority of Lebanon (IDAL). Companies with foreign shareholders should also check any restrictions on foreign ownership of real estate and certain professions.

Annual entity requirements in Lebanon: the core checklist

1. Annual general assembly

A SAL holds an annual general assembly to approve the accounts and the board's report, while a SARL's partners meet to approve the accounts and manager's report. Minutes are recorded and kept in the company books. Resolutions that change the articles must be registered with the commercial register and published where required.

2. Audit and auditors

A SAL must have an annual audit, and the shareholders appoint a principal auditor, with the commercial court appointing a supplementary auditor in some cases. A SARL needs at least one auditor if it meets the audit criteria. Audited statements are typically submitted with the tax declaration, and one source says audited statements should be submitted before June of the following year. Penalties apply for late submission.

3. Corporate income tax declaration

Companies using the real profit method, which is mandatory for SALs and SARLs, file their annual declaration and pay the tax by 31 May for the previous year. The Ministry of Finance has repeatedly extended deadlines in recent years, including a decision in late 2025 that moved the filing and payment of corporate income tax and beneficial owner declarations for the 2023 and 2024 years to the end of 2025. Such extensions are exceptions, so do not treat them as standard dates.

4. Beneficial owner and non-resident declarations

The annual declaration package includes the ultimate beneficial owner form (M18) and, where payments are made to non-residents, the annual non-resident tax form (G5). These forms are filed with the tax return and must reflect the real ownership chain, which should match the commercial register and banking records.

5. Registers and attorney

Maintain the register of partners or shareholders, board and assembly minutes, accounting books and the commercial register file. Lebanese practice also requires certain companies to appoint a company attorney who is a member of the bar, with a minimum annual fee, and the appointment should be documented.

Tax and indirect tax obligations

The standard corporate income tax rate has been cited at 17 percent, although some secondary sources give 15 percent, so confirm the rate applicable to your company and year. Other taxes include a tax on dividends, a tax on interest income, payroll tax, a fixed minimum tax in some cases and a tax on capital gains on certain assets.

VAT is generally 11 percent, although some secondary sources still cite 10 percent, so confirm the rate used in your invoices. VAT returns are filed quarterly, and incorrect filing can lead to fines of up to 20 percent of the difference between tax declared and tax due. Late filing or payment of corporate tax, payroll tax, audit reports and VAT can lead to penalties of 5 percent of the tax per month up to 100 percent, with minimum amounts, as described by the Lebanese investment authority. Withholding tax applies to dividends, interest and certain payments abroad, subject to treaties.

Foreign-owned subsidiaries

A foreign-owned SARL or SAL follows the same rules, with attention to documentation. Share capital contributions and foreign exchange transfers must be supported by bank records, and the Central Bank and banks have placed restrictions on transfers in recent years, so plan profit repatriation and intercompany payments with local counsel.

Foreign managers who live in Lebanon may need a work permit, and the ownership and capital thresholds for work permits vary. Payments abroad such as royalties, interest and service fees should be supported by contracts and tested for withholding tax. Branches of foreign companies are taxed on Lebanese-sourced profits at the standard rate, with additional rules on head office charges.

First-year and event-triggered obligations

In the first year, form the company by notarial deed, register with the commercial register, register with the Ministry of Finance for income tax, VAT and payroll, register with the NSSF, open a bank account and appoint an auditor and attorney where required. Event-driven filings include changes in partners, managers, capital, address and objects, as well as mergers, conversions and liquidations.

Liquidation requires a formal process and tax clearance. A dormant company still has tax and registry obligations, so file nil declarations or close it formally.

Employment and local requirements

Employers register employees with the NSSF and pay contributions for end-of-service indemnity, sickness and maternity, and family allowances at rates set by law, with an employer share larger than the employee share. They withhold payroll tax from salaries and file quarterly or annual returns. The Labour Code regulates working hours, overtime, leave and termination, and the end-of-service scheme is a major cost item. Foreign employees need work and residence permits, and some professions are restricted to Lebanese nationals. Salary payments may be made in more than one currency under current practice, which should be documented in contracts.

Record-keeping and governance in Lebanon

Keep the articles, commercial register extracts, minutes, accounting books, audited statements, tax declarations, VAT records, NSSF records and contracts. Accounting records are generally kept for at least ten years under commercial law, and tax records for the period the tax authority may reassess. Maintain a list of authorised signatories, a calendar for the May filings, VAT quarters and NSSF deadlines, and a file for extension decisions published by the Ministry of Finance so that the basis for any late filing is documented.

Build a compliance calendar for Lebanon

A compliance calendar turns the rules above into dated tasks with named owners. Start from the financial year-end and the incorporation anniversary, then add the recurring monthly and quarterly items. Review it each quarter, because deadlines, extensions and registry systems change.

• Within the legal period after changes: update the commercial register.

• Quarterly: VAT return and payment.

• Monthly or quarterly: payroll tax and NSSF filings.

• 31 May: corporate tax declaration, beneficial owner form and non-resident tax form, unless an extension is announced.

• Before June: audited statements, where required.

• Annually: renew the company attorney appointment and review bank documents.

Common mistakes

• Treating a published extension for earlier years as the normal deadline.

• Omitting the beneficial owner and non-resident forms from the declaration.

• Assuming a SARL is exempt from audit without testing the size criteria.

• Using an old VAT or corporate tax rate from secondary sources.

• Remitting funds abroad without checking bank and Central Bank restrictions.

• Forgetting the company attorney requirement.

Entity compliance Lebanon: frequently asked questions

What are the main private company types in Lebanon?

The limited liability company (SARL) and the joint stock company (SAL) are the two main structures, with branches and representative offices used by foreign groups.

When is the Lebanese corporate tax declaration due?

Generally by 31 May for the previous year, although the Ministry of Finance has repeatedly extended deadlines for specific years.

Does a SARL need an audit?

It depends on size and sector, and sources differ on the thresholds, so confirm with a Lebanese auditor. A SAL must be audited.

What is the VAT rate in Lebanon?

VAT is generally 11 percent, although some secondary sources cite 10 percent, so confirm the rate used in your invoices.

What is the beneficial owner form?

The M18 declaration, filed with the annual tax return, identifies the ultimate beneficial owners of the company.

Can profits be sent to a foreign parent?

In principle yes, but banking restrictions have affected transfers, so plan remittances with local counsel and bank support.

How CoverPin can help

CoverPin helps finance, legal and operations teams track entity obligations across countries. See our international entities overview, learn about compliance advisory, or browse more guides in our legal and compliance resources.

This article is general information, not legal, tax or accounting advice. Confirm current requirements with the relevant authority or a qualified local adviser before acting.