Liberia is a state in western Africa. Due to its loyal attitude to foreign capital, this country is rapidly gaining popularity among representatives of international business. The state is part of key world organizations such as the International Monetary Fund, the World Health Organization, and the United Nations. Domestically, it is allowed to conduct business as representatives of foreign companies, and to use a Liberian firm to conduct business outside Liberia.
Company Registration in Liberia – Features
To register a company in Liberia, it is necessary to appoint a director and a secretary to the staff. They may be foreigners. The establishment and operation of companies in the country are controlled and regulated by the local Ministry of Industry and Commerce. To apply for the creation of a company, you need to purchase its letterhead, which is available at the cash offices of the ministry. It is forbidden for non-residents to create firms that are engaged in banking, stock, insurance, and gambling businesses.
Information that identifies the permitted type of activity should be indicated in the charter. In addition, it is necessary to indicate the names of the owners, the amount of investment, and the capital, as well as names.
There is a charge for setting up a company in Liberia. If the fee is not paid, the legal entity is liquidated. To restore it, you will have to pay a fine and, in some cases, change the name. Also, the legal entity needs a local agent and an official address.
Other company features in Liberia
- A corporation in Liberia must have at least three directors. Moreover, the number of shareholders should be the same. If there are fewer than three shareholders, then the number of directors may also be reduced. The number of directors mustn’t exceed the number of shareholders.
- Every corporation must have a secretary, president, and treasurer. All these positions can be combined into one individual.
- An entrepreneurial company in Liberia can have 1 shareholder and director, but the law does not allow the same person to perform their functions.
- A limited liability company can only have one member and a manager.
- In a Liberian partnership, there can be one general partner with unlimited and one limited partner.
- A private equity company in Liberia is commonly used in the trust of shares in an overseas maritime entity, that is, to own a ship in Liberia.
- Foreign maritime enterprises are legal entities registered outside Liberia. They operate ships (or one ship) that fly the flag of Liberia. In the courts, such enterprises have the rights of a Liberian company, but they do not lose their legal status in the country of registration. The Liberian merchant fleet is one of the largest in the world, therefore entrepreneurs from all over the world register their ships here. A Liberian ship must be owned by a Liberian corporation. A fixed administrative fee will be removed from each of the vessels (regardless of tonnage). This fact attracts many ship owners.
- Data on beneficial owners and non-resident businesses in Liberia should not be disclosed. There is no open register of directors and shareholders.
- Liquidation of any offshore company in Liberia may occur for non-payment of the annual fee that is paid to renew the registration. To restore the company, you will need to pay all fees and fines. You may have to change the name of the company (in case another company is registered under the same name while the company is in the status liquidated).
Forms of company registration in Liberia
A company can be created as a corporation (the number of directors should not exceed the number of shareholders), a limited liability partnership (the general partner can be one person whose liability is not limited), a company (with one owner, with equity participation and limited liability, non-profit, closed stock), Marine Company.
Foreigners prefer the first two options. The lower threshold of the authorized capital is not defined, therefore, 50 thousand dollars or 500 shares are quite enough for registration.
Taxation in Liberia
Non-resident (offshore) businesses in Liberia are exempt from any type of tax, provided that their profits are derived from outside the jurisdiction and they do not own Liberian real estate or engage in prohibited activities.
Bookkeeping in Liberia
- There is no need to register an annual or any other type of report.
- No asset disclosure is required.
- It is now easy to register or buy a company in Liberia. Registration of a company or business in Liberia is a sure way to success today! Registration of companies (including offshore in Liberia) in various countries of the world is one of the most important directions in our activity.