The Libyan Council of Ministers (CoM) issued Decree 482 of 2024 on Sep. 19 of this year granting new powers and authority to the Commercial Registry (CR) when it comes to the establishment of a legal presence for foreign companies in Libya.

This decree, known as Decree 482, revises the framework for foreign companies seeking to operate in Libya, which marks a significant shift from previous regulations.

Under Libyan law, foreign companies are required to establish a legal presence in the country to engage in any commercial activity, participate in bids, or to enter into contracts.

Prior to this change, the process of establishing a legal presence was governed by Decree 207 of 2012, which mandated the Ministry of Economy (MoE) as the approving Authority. Under Decree 207, foreign companies first had to secure MoE approval before submitting their application to the CR to complete the registration process.

The new decree shifts the authority to approve branches and joint ventures of foreign companies from the MoE to the Head of the CR. This eases the process, allowing foreign companies to interact with a single regulatory body. Once the government implements this change, foreign companies will benefit from a simplified road map that reduces procedural steps and waiting times.

Moreover, the CR may introduce additional administrative requirements associated with this new process, which could impact how foreign entities establish branches or joint ventures. We at Eltumi Partners believe that this change represents a positive development for foreign companies interested in investing and operating in Libya. By shortening the registration process, the new decree facilitates a quicker entry for foreign businesses, reducing bureaucratic hurdles.

Eltumi Partners is closely monitoring these potential changes and will provide market updates as Decree 482 comes into force and any new requirements become clear. We have extensive experience in assisting companies, particularly in the oil and gas sector, with establishing their legal presence in Libya. We guide companies through the entire registration process, helping them comply with legal requirements and complete their registration efficiently.

For more market updates, follow our LinkedIn page or visit our Insights page.