Posted on June 20, 2019
Choose your legal structure wisely
It is very important to choose wisely your legal structure since the legal entity that you choose will have a global impact on your business.
It will affect how customers, partners, creditors and the general public view your company, as well as how it will be taxed and what types of liabilities ill incur.
It will also affect your ability to attract new partners, shareholders or investors.
Before choosing your legal structure, ask yourself the following questions
Commonly used legal means or structures in Lebanon
Entrepreneurs should not form a company until the idea is already settled and when the capital is available.
The cost for forming and operating a Joint Stock Company (SAL) is often greater than that of a Limited Liability Company (SARL); SAL offers advantages as compared to SARL, most significantly freedom of transfer of shares, lesser required majority to increase the capital and attract new investors, and exemption from stamp duties and tax on the transfer of shares.
Once you decide which legal structure may best suits your needs
Protect your Intellectual Property Rights
Engage good lawyers, accountants and tax experts
Interview several lawyers and tax experts or accountants, determine their level of expertise in corporate and commercial law, employment, intellectual property, and tax laws. Find a lawyer and an accountant that you feel at ease with because this may be a long-term relation that is close to the relation among co-founders.
About the author
Joelle Jreige is a Partner at Sami Nahas Law Firm, which has consistently ranked as one of the leading law firms in Lebanon. Joelle was educated in Sagesse University where she obtained a Bachelor in Law and a DEA in Private Law (Corporate Law).
She has been practicing law since 2003 and joined Sami S. Nahas Law Firm in 2008 after having worked at Ibrahim Abou Sleiman Law Office.
She is currently acting as legal advisor and general counsel of various leading projects, groups or corporations in Lebanon and the Mena region, with a special focus on real estate financing, construction, and development, the hospitality industry and investment banking.
Joelle has been a member of the Beirut Bar Association since 2003.