Libyan Foreign Investment Board, L.F.I.B

Investment promotion law No. 5/1997 as amended by the law No: 7/2003 and its Executive Regulation . This law aims at: - Enabling the transfer of modern technologies. - Formation of Libyan human resources technically. - Diversification of sources of income. - Promotion of national products to be able to gain access to international markets. - Enabling Locative development.   What is expected from investment projects?   - Production of commodities for export. - Increase of export share of a commodity. - Satisfaction of needs in a given commodity so as there will be no need for the importation of commodities from abroad in part or in whole. - Provision of work opportunities for national ma­npower as well training with a view to acquiring skills and technical expertise. - Application of a new technology or a trade mark or a technical expertise. - Provision of a service needed by the National Ec­onomy or contribution in improving or developing Same. - Enhancement of links and integration between ex­isting economic projects or reduction of their pro­duction cost or contribution in provision of opera­tion material thereof. - Use of local raw material or contribution in using same . Contribution in promotion or development of Remote and economically underdeveloped areas .   Sectors open for investment : Industry, health, services, agriculture, tourism, and any other field to be defined by a decision from The General People's Committee upon a recom­mendation from the competent secretary . Privileges, exemptions and rights guaranteed by the law: A. Machinery, equipment and tools shall be exempted from all duties, customs and similar Taxes. B. Exemption equipment, spare parts and raw material required for projects, from all dues, customs imposed on importation and from all other taxes of similar impact for a period of 5 years. C. Exemption of project from income taxes concerning its activity far a period of 5 years from the start of production or operation of project. This period may be extended to a further 3 years, upon a decision from the Secretary of the general People's Committee upon a recommendation from the Secretary of Economy & Trade. If re - invested in the project, profits shall also be exempted from dues. Investor shall further be entitled to carry over the loss suffered by the project during the exemption period to the subsequent years. D. Commodities oriented to exportation shall be exempted from production tax and from all the other export dues, when exported. E. Investment projects shall be exempted from stamp taxes levied in accordance with the fiscal Tax Regulation in force.       The investor shall be entitled to : 1. Repatriate the capital he had invested in the following cases: A. End of project term. B. Liquidation of project. C. Sale of project, partially or wholly. D. Elapse of a period, not lesser than 5 years the from date of issue of the Investment License. 2. Transfer of the foreign capital back home: This Capital may be repatriated back under the same conditions of its entry to Libya namely, after the elapse of {6} months from the date of such transfer if difficulties or circumstances beyond the investor's control prevented the investment of this foreign capital. 3. Net profits and interest there made may be transferred abroad each year. 4. Investors may employ foreigners if national alternatives are not available . These foreign workers shall be entitled to transfer abroad th­eir wages and salaries as well as any benefits or allowances paid to them in the framework of the project. 5. Any project contributing to locative develop­ment or to food security or which makes use of equipment enabling economy in power or water or contributing in the protection of the environment, shall enjoy the exemptions set forth in paragraphs (b and c) of article (10) of the law No (5) on the promotion of invest­ment of foreign capital, as amended By the law No (7) and Its Executive Regulations. An addi­tional exemption period may be gives in this respect by a decision from the secretary of economy and trade. The executive regulation shall determine if the project satisfies these requirements 6. Investors shall have the right to ownership of lands { use right} and are also entitled to lease premises for the establishment or operation of their projects as per the conditions set forth in The Executive Regulations. 7. Investors are entitled to open foreign currency Accounts in relation to their projects in commercial banks operating in Libya or in the Libyan Arab foreign bank. 8. Ownership of projects may pass, partially or wh­olly, from one investor to another with the appr­oval of the Board. 9. Nationalization, expropriation, confiscation or imposition of custody , freeze or similar effect Procedures are not permitted save in accordance with the rule of law or in application of a judic­ial ruling and against an immediate and equita­ble compensation. These actions are to be taken on a non-discriminatory manner and compensa­tion value has to be computed on the fair mark­et value of the project When such action was Taken.       Documentation required for investment: I. documentation for general nature: 1. Filling in of an application for the establishment of an investment project ( available at L.F.LB) . 2. Drawing up of a memorandum depicting the following information: A - Capital to be invested in Libya, Its nature and its equivalent valued in transferable currencies or in Libyan Dinar, ( at the time of application) . B- The imported and local materials, if any, which will be used in the project. C - Project's technical specifications. D- A programme or a time schedule setting forth the Implementation phase of the project. E- Evaluation of the local and expatriate manpower re­quired for the operation of the project. 3. A legal agreement, approved by founders commissi­oning one of the partners to represent them at finaliz­ing the approval formalities of the project. 4. A deposit form or certified cheque of LD 200 against the application for establishing an investment project. II . Documentation required from foreign investment partners: 1. A certificate, issued by competent authorities, as to the nationality of the investor, in the case of natural person. 2. A recent transcript from the commercial register sheet in the country of origin, for body corporates. 3. Any other information put forward by the Investor.   Remarks: * please have the kindness to certify the related documents by the Libyan Brotherhood or People's Bureaus (Embassies) in the investor's country or the main office of the project abroad. *All documents presented to board must be ori­ginal legally translated and duly authenticated. * All documents required are to be made avail­able within (60) days from the application date. III. Documentation required from national partners: 1. Copy of ID card and birth certificate. 2.A testimony as to registration in the commerc­ial register 3.Copy of the Articles of the Association and statute of the company or Tasharukia (Partnership). 4.Consentment of all local partners as to the Partnership with the foreign partner.