	Social Enterprise Law Surveys
	Lebanon
	(Middle East) Firm Moghaizel Law Office
What jurisdiction(s) do you practice in?	Lebanon
What are the most commonly used types of for-profit corporate organizational forms in your jurisdiction (e.g., corporation, limited liability company, benefit corporation, social purpose corporation, etc.) used by Enterprises operating a trade ...	The most common for-profit organizational forms utilized in Lebanon are the joint stock company and the limited liability company. Limited liability companies are intended for small and medium size projects and have one or more managers. Joint stock companies are intended for larger projects and have a board of directors. a. Enterprises that seek financing from investors and will have multiple owners tend to form joint stock companies. It is possible to work with limited liability companies that have many members and investor backing, but it is less standard. b. We do not have Social Enterprises that are in the form of companies. Social enterprises take the form of not-for-profit associations and have a specific regime. They are all tax exempt and have no owners, just members.
Do any of your jurisdiction’s traditional organizational forms require or permit the board or managers to consider, balance or prioritize interests other than shareholder value in decision making? What other interests, if any, are they required...	Joint Stock Companies: No requirement. Other considerations are permitted only to the extent they do not detract from shareholder value. Limited Liabilities Companies: No requirement.
Does your jurisdiction have organizational forms specifically designed for Social Enterprises? If so:a. What type(s) of organizational forms are they?b. How do they materially differ from the most closely analogous traditional organizational ...	Only not-for-profit associations. They have no owners, and have only members, and they must have a president, vice-president, accountant, secretary and assets supervisor. Associations are tax exempt. There are no stakeholders and no profits that can be distributed. All revenue must be used by the association for the performance of its activities. Forming an association is cheaper but takes more time
Are Social Enterprises permitted to be formed and operated as Nonprofits? If so: a. Are Nonprofits that are Social Enterprises treated differently under the law as compared to Nonprofits that are not Social Enterprises, whether from a corporat...	They all must be in the form of not-for-profit associations.
Does your jurisdiction allow for worker-owned Enterprises, such as cooperatives? If so, please describe any material benefits of, and/or restrictions on, using such forms.	Yes, cooperatives are available. They are owned by their members, and not necessarily by the workers. They are subject to a favorable tax regime.
Are there unique reporting requirements for Social Enterprises? If there are, please describe them. Please also discuss what government bodies Social Enterprises are required to report to.	There is an annual reporting that should be made by the non-profit association to the Ministry of Interior including the budget of the lapsed year and the balance sheet of the current year.
In your jurisdiction, has case law and jurisprudence evolved to address Social Enterprises? If there is meaningful jurisprudence around Social Enterprises, please provide some brief examples.	No.
Does your jurisdiction have any ESG requirements for Enterprises generally? If it does, please describe.	No.
Does your jurisdiction have any ESG requirements specifically for Social Enterprises? If it does, please describe.	No.
Does your jurisdiction have any ESG requirements for investors? If it does, please describe.	No.
Are any major investor classes (e.g., pension funds, mutual funds, etc.) required to look at ESG issues when making investment decisions in your jurisdiction? a. If they are, please describe the requirements.b. If they are not, are they permi...	Not required and not regulated.
What kinds of philanthropic funding do Social Enterprises in your jurisdiction commonly receive (e.g., grants, charitable investment, traditional investment)?	Grants.
How prevalent, if at all, are new for-profit impact investments in your jurisdiction (e.g. traditional instruments with impact terms, new investment instruments, aggregation with philanthropic capital, community based funding, etc.)?	Not applicable.
What are the types of government funding and support available to Social Enterprises, if any, available in your jurisdiction (e.g., grants, investments, bonds, and guarantees)? a. How difficult is it for Social Enterprises to obtain government...	Grants. It is quite difficult because of the limited funds available.
Are there any companies that are formed as a Social Enterprise listed on your jurisdiction’s leading securities exchange(s)?	Not applicable because not-for-profit companies are not recognized by Lebanese law.
To what extent are publicly traded Enterprises required to disclose ESG related factors in annual reports/public filings in your jurisdiction.	Not applicable.
How prevalent, if at all, are impact bonds in your jurisdiction?	Not applicable.
In your jurisdiction, are there any restrictions on foreign investments or donations that are unique to Social Enterprises (whether incorporated as for profit entities or as Nonprofits)?	Not applicable.
Is “crowdfunding” legal in your jurisdiction? Are there rules under applicable securities laws that make it easier for smaller businesses or Social Enterprises to take money from investors that are not sophisticated/accredited/qualified under a...	Crowdfunding is legal but is not regulated.
Are there any tax exemptions that are uniquely available for Social Enterprises? a. Please describe any tax exemptions that are available and whether they are partial or full.b. Are they dependent on the Social Enterprise utilized using a spe...	Tax exemptions apply to all non-profit associations.
Are individuals or other organizations able to provide tax deductible donations to for-profit Social Enterprises? If they are, please describe any restrictions applicable to tax deductible donations?	Not applicable.
Are there any other tax benefits uniquely available for Social Enterprises? (e.g. deferrals, favorable tax rates, business deductions, etc.)	Not-for-profit associations are exempt from income tax.
Does your jurisdiction provide for reciprocal recognition of tax-exempt status that has been granted under the law of any other jurisdictions?	No, but not-for-profit association that establish a branch in Lebanon are exempt from income tax.
Does your jurisdiction have Regulatory Sandboxes or similar policy frameworks for Social Enterprises? If it does, please describe.	No.
What government operational support, resources, training or services, are available for small businesses or Social Enterprises?	Resources are available to businesses in specific areas such as the environment and specific technologies.
Are there different compliance requirements for different types of Social Enterprises than for traditional Enterprises? Please provide examples if there are.	Associations are subject to a totally different regime than for profit companies. For instance, they do not file tax returns and are not bound to have an auditor.
Is there a dedicated government agency or department that oversees Social Enterprises? If there is, please describe its mandate and effectiveness.	There is a dedicated department at the Ministry of Interior.
Is there a different bankruptcy system available for Social Enterprises?	Bankruptcy does not apply to associations. It applies only to for-profit businesses and individual business persons.
What are the average time and filing fees to form an Enterprise in your jurisdiction?	Four business days. Filing fees depend on the amount of the company’s capital.
What government or third-party certifications or accreditations, if any, are available for Social Enterprises that allow for access to benefits e.g. funding, beneficial tax status, etc.? Please provide examples and briefly describe them as well...	Not applicable.
Please describe whether, in your opinion, startups and other entrepreneurial Enterprises generally can easily form and flourish in your jurisdiction.	Yes, startups can easily form and flourish in Lebanon. There are relatively few reporting requirements for private for-profit businesses and incorporation processes are fast and reasonable.
Please describe whether, in your opinion, Social Enterprises, in particular, can easily form and flourish in your jurisdiction.	Not applicable.
Please describe whether in your opinion there are any laws that are obstructive to the formation of Social Enterprises (i.e. that actively disfavor or penalize, or otherwise discourage their formation) in your jurisdiction (for example, are Soc...	Not applicable.
In your jurisdiction, are there any major fraud concerns or defects due to corruption or fraud that should be addressed? If there are, please briefly discuss the concerns or defects.	Public administrations in Lebanon do suffer from bureaucracy and corruption.
What changes to the law do you think would be most beneficial to enabling Social Enterprises to flourish in your jurisdiction?	The starting point would be enacting a legal framework for Social Enterprises utilizing for-profit Enterprise forms.
What changes to the law do you think would be most beneficial to enhancing the social and environmental responsibility of Enterprises generally (whether or not Social Enterprises)?	As stated above, in Lebanon, the starting point would be enacting a legal framework for Social Enterprises utilizing for-profit Enterprise forms.
Is there anything else you would like to add or guidance you would like to provide? Are there any questions we should have asked but did not?	No.

Social Enterprise Law Surveys

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What jurisdiction(s) do you practice in?

Lebanon

What are the most commonly used types of for-profit corporate organizational forms in your jurisdiction (e.g., corporation, limited liability company, benefit corporation, social purpose corporation, etc.) used by Enterprises operating a trade ...

The most common for-profit organizational forms utilized in Lebanon are the joint stock company and the limited liability company. Limited liability companies are intended for small and medium size projects and have one or more managers. Joint stock companies are intended for larger projects and have a board of directors.

a. Enterprises that seek financing from investors and will have multiple owners tend to form joint stock companies. It is possible to work with limited liability companies that have many members and investor backing, but it is less standard.

b. We do not have Social Enterprises that are in the form of companies. Social enterprises take the form of not-for-profit associations and have a specific regime. They are all tax exempt and have no owners, just members.

Do any of your jurisdiction’s traditional organizational forms require or permit the board or managers to consider, balance or prioritize interests other than shareholder value in decision making? What other interests, if any, are they required...

Joint Stock Companies: No requirement. Other considerations are permitted only to the extent they do not detract from shareholder value.
Limited Liabilities Companies: No requirement.

Does your jurisdiction have organizational forms specifically designed for Social Enterprises? If so:a. What type(s) of organizational forms are they?b. How do they materially differ from the most closely analogous traditional organizational ...

Only not-for-profit associations. They have no owners, and have only members, and they must have a president, vice-president, accountant, secretary and assets supervisor.

Associations are tax exempt.

There are no stakeholders and no profits that can be distributed. All revenue must be used by the association for the performance of its activities.
Forming an association is cheaper but takes more time

Are Social Enterprises permitted to be formed and operated as Nonprofits? If so: a. Are Nonprofits that are Social Enterprises treated differently under the law as compared to Nonprofits that are not Social Enterprises, whether from a corporat...

They all must be in the form of not-for-profit associations.

Does your jurisdiction allow for worker-owned Enterprises, such as cooperatives? If so, please describe any material benefits of, and/or restrictions on, using such forms.

Yes, cooperatives are available. They are owned by their members, and not necessarily by the workers. They are subject to a favorable tax regime.

Are there unique reporting requirements for Social Enterprises? If there are, please describe them. Please also discuss what government bodies Social Enterprises are required to report to.

There is an annual reporting that should be made by the non-profit association to the Ministry of Interior including the budget of the lapsed year and the balance sheet of the current year.

In your jurisdiction, has case law and jurisprudence evolved to address Social Enterprises? If there is meaningful jurisprudence around Social Enterprises, please provide some brief examples.

No.

Does your jurisdiction have any ESG requirements for Enterprises generally? If it does, please describe.

No.

Does your jurisdiction have any ESG requirements specifically for Social Enterprises? If it does, please describe.

No.

Does your jurisdiction have any ESG requirements for investors? If it does, please describe.

No.

Are any major investor classes (e.g., pension funds, mutual funds, etc.) required to look at ESG issues when making investment decisions in your jurisdiction? a. If they are, please describe the requirements.b. If they are not, are they permi...

Not required and not regulated.

What kinds of philanthropic funding do Social Enterprises in your jurisdiction commonly receive (e.g., grants, charitable investment, traditional investment)?

Grants.

How prevalent, if at all, are new for-profit impact investments in your jurisdiction (e.g. traditional instruments with impact terms, new investment instruments, aggregation with philanthropic capital, community based funding, etc.)?

Not applicable.

What are the types of government funding and support available to Social Enterprises, if any, available in your jurisdiction (e.g., grants, investments, bonds, and guarantees)? a. How difficult is it for Social Enterprises to obtain government...

Grants. It is quite difficult because of the limited funds available.

Are there any companies that are formed as a Social Enterprise listed on your jurisdiction’s leading securities exchange(s)?

Not applicable because not-for-profit companies are not recognized by Lebanese law.

To what extent are publicly traded Enterprises required to disclose ESG related factors in annual reports/public filings in your jurisdiction.

Not applicable.

How prevalent, if at all, are impact bonds in your jurisdiction?

Not applicable.

In your jurisdiction, are there any restrictions on foreign investments or donations that are unique to Social Enterprises (whether incorporated as for profit entities or as Nonprofits)?

Not applicable.

Is “crowdfunding” legal in your jurisdiction? Are there rules under applicable securities laws that make it easier for smaller businesses or Social Enterprises to take money from investors that are not sophisticated/accredited/qualified under a...

Crowdfunding is legal but is not regulated.

Are there any tax exemptions that are uniquely available for Social Enterprises? a. Please describe any tax exemptions that are available and whether they are partial or full.b. Are they dependent on the Social Enterprise utilized using a spe...

Tax exemptions apply to all non-profit associations.

Are individuals or other organizations able to provide tax deductible donations to for-profit Social Enterprises? If they are, please describe any restrictions applicable to tax deductible donations?

Not applicable.

Are there any other tax benefits uniquely available for Social Enterprises? (e.g. deferrals, favorable tax rates, business deductions, etc.)

Not-for-profit associations are exempt from income tax.

Does your jurisdiction provide for reciprocal recognition of tax-exempt status that has been granted under the law of any other jurisdictions?

No, but not-for-profit association that establish a branch in Lebanon are exempt from income tax.

Does your jurisdiction have Regulatory Sandboxes or similar policy frameworks for Social Enterprises? If it does, please describe.

No.

What government operational support, resources, training or services, are available for small businesses or Social Enterprises?

Resources are available to businesses in specific areas such as the environment and specific technologies.

Are there different compliance requirements for different types of Social Enterprises than for traditional Enterprises? Please provide examples if there are.

Associations are subject to a totally different regime than for profit companies. For instance, they do not file tax returns and are not bound to have an auditor.

Is there a dedicated government agency or department that oversees Social Enterprises? If there is, please describe its mandate and effectiveness.

There is a dedicated department at the Ministry of Interior.

Is there a different bankruptcy system available for Social Enterprises?

Bankruptcy does not apply to associations. It applies only to for-profit businesses and individual business persons.

What are the average time and filing fees to form an Enterprise in your jurisdiction?

Four business days. Filing fees depend on the amount of the company’s capital.

What government or third-party certifications or accreditations, if any, are available for Social Enterprises that allow for access to benefits e.g. funding, beneficial tax status, etc.? Please provide examples and briefly describe them as well...

Not applicable.

Please describe whether, in your opinion, startups and other entrepreneurial Enterprises generally can easily form and flourish in your jurisdiction.

Yes, startups can easily form and flourish in Lebanon. There are relatively few reporting requirements for private for-profit businesses and incorporation processes are fast and reasonable.

Please describe whether, in your opinion, Social Enterprises, in particular, can easily form and flourish in your jurisdiction.

Not applicable.

Please describe whether in your opinion there are any laws that are obstructive to the formation of Social Enterprises (i.e. that actively disfavor or penalize, or otherwise discourage their formation) in your jurisdiction (for example, are Soc...

Not applicable.

In your jurisdiction, are there any major fraud concerns or defects due to corruption or fraud that should be addressed? If there are, please briefly discuss the concerns or defects.

Public administrations in Lebanon do suffer from bureaucracy and corruption.

What changes to the law do you think would be most beneficial to enabling Social Enterprises to flourish in your jurisdiction?

The starting point would be enacting a legal framework for Social Enterprises utilizing for-profit Enterprise forms.

What changes to the law do you think would be most beneficial to enhancing the social and environmental responsibility of Enterprises generally (whether or not Social Enterprises)?

As stated above, in Lebanon, the starting point would be enacting a legal framework for Social Enterprises utilizing for-profit Enterprise forms.

Is there anything else you would like to add or guidance you would like to provide? Are there any questions we should have asked but did not?

No.

Social Enterprise Law Surveys

Lebanon

Social Enterprise Law Surveys

Lebanon

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