Libya

According to the law of the country, a “commercial representative” is defined as one who is allowed to carry out one or more activities as a commercial agency. To engage in this activity, registration in the Register of Commercial Agencies is required for a homogeneous product category or series of products.

The maximum number of commercial representations that can be exercised è:

• Three for an individual person
• Seven for a legal person
• Ten for a specially created company

&It is also necessary for the production/distribution/marketing company to have a trade agent in Libya duly registered and authorized by the Ministry of Economy and Trade. As for consumer goods, it will be necessary to have at least four agents, i.e., one for each of the four macro-areas identified in the cities of Tripoli, Benghazi, Sirti and Sabba.

The function of the trade agent canè be entrusted exclusively to individuals of Libyan nationality or legal entities with registered offices in Libya. This provision è motivated, on the one hand, by the need’to reduce the high unemployment rate and, on the other hand, to propose as agent a figure with full knowledge of the Libyan culture capable of having direct relations with clients.

The protection of trademarks in Libya è is guaranteed by domestic legislation and, more precisely, by Law No. 40/1956, Law No. 23/2010 and Regulation No. 26/2024 of the Ministry of’Economy. Libya protects trademarks understood both in individual and collective form, in the triple profile of figurative trademarks, verbal trademarks and sound trademarks.

Foreign businessmen can apply, through their attorney, to register their trademark directly with the Libyan Trademark Office, accompanying their application with a reproduction of the trademark and an indication of the relevant classes, according to the Nice Convention (although Libya is not a party to the Nice Agreement on the International Classification of Goods and Services) Generally, there are no limitations on registering foreign trademarks, unless one of the following conditions is met:

• the trademarks are contrary to Shari’a (Islamic Law), public order or morality;
• generate confusion with other trademarks;
.
• are similar to other trademarks already registered in Iran;
.
• are likely to confuse the public as to the origin, nature or characteristics of a product;
• contain symbols or emblems referable to a state or other international organizations;
.

Libyan law also does not provide legal protection to trademarks related to alcoholic beverages and pork.

Registration of trademarks is valid for ten years, and è renewable for an equal period.

È there is a “grace” period of 3 months for late renewal of trademark registration, which can be obtained through the payment of a surcharge.

The’opening of a branch in the country does not require a local partner and must be authorized by the Ministry of Economic Affairs, which - having carried out the appropriate verifications – issues it on condition that the foreign company is not already operating in the country, in the same sectors of activity – for which it has applied to open a branch, through a joint venture with a local partner. The branch can be established for a maximum period of 5 years and canò operate only in one of the following business sectors:

• Electricity
• Housing and civil construction (for contracts worth LYD 50 million and above)
.
• Oil sector
• Telecommunications
• Industry
• Engineering, surveying and mapping
• Environmental Protection
• Information Technology Industry
• Health care
• Air transportation
• Technical studies, training and supervision

The’opening of a branch operating in sectors other than those mentioned above is not è permitted, except for special exemptions that may be granted by the Ministry, as well as not è allow Libyan nationals or companies to do business with foreign branches without the necessary authorization.

To obtain permission to open a branch in Libya, a foreign company must submit the following documents, translated into Arabic and duly apostilled:

1. The resolution of the Board of Directors regarding the opening of a branch in Libya, containing:
   • The business sector among those listed above;
   • The budget dedicated to the opening and management of the branch, which shall not be less than LYD 250,000.00;
   • The appointment of a director in charge of the branch and a deputy director, at least one of whom must be a Libyan national;
2. Copy of the company's Articles of Incorporation and Memorandum of Association;
3. Documentary evidence showing the company's experience and conduct of business in the sector(s) for which application is made;
4. Certificate of the company's registration with the Registrar of Companies in the country of origin;
5. Statement of intention to prepare company financial statements on an annual basis, subject to audit by a Libyan auditor;
6. Certification from one of the banks licensed to operate in Libya showing the deposit of the capital required for the establishment and operation of the branch (not less than LYD 250,000.00)