Business entities in Liberia

Business entities in Liberia

Healy Consultants will assist our Clients to incorporate the optimal corporate structure in Liberia. There are several ways of doing business in Liberia, the most common being the setting up of a corporation. Foreign entrepreneurs may also opt to set up a limited liability company, private foundation, a foreign maritime entity or branch office.

The Liberia limited liability company (LLC)

    Setup business in Liberia

  • The Liberian LLC is the preferred entity type for investors looking to form a holding company, and requires only one director and one shareholder of any nationality for incorporation process to be complete. The minimum paid-up capital required is US$1;
  • The LLC must appoint a registered agent and must have a legal registered address in Liberia. By law, all Liberian companies must appoint LISCR Trust Company to serve as the registered agent. LLCs are not required by law to submit annual audited financial statements.

The Liberia corporation

  • The Liberian corporation must appoint at least one director and one shareholder who can be of any nationality. The minimum paid-up share capital required to complete the incorporation process is US$1 while initial assets must be in cash or equivalent value of US$10,000. The company must also appoint a registered agent as well as a supervisory board and must have a registered address in Liberia;
  • A Liberian corporation is not required to file any annual returns or audited financial statements, but should maintain accounting records at the registered office to reflect the company’s financial status.

The Liberia private foundation

  • The Liberian private foundation must appoint at least one director and three shareholders, who can be of any nationality. Two of the shareholders must be individuals. The minimum paid-up share capital required to complete the incorporation process is US$10,000;
  • A private foundation is popular among those who wish to set up an entity to preserve wealth-generating activities of a family. This entity must appoint a registered agent and must have a registered address in Liberia;
  • A Liberian private foundation is not required by law to submit annual audited financial statements.

The Liberia foreign maritime entity (FME)

  • The non-Liberian entity may register an entity in Liberia so as to own and operate a ship flying the Liberian flag. The minimum paid-up share capital required to complete the incorporation process is US$1;
  • As a statutory requirement, an FME must appoint the LISRC Trust Company as registered agent in Liberia must have a registered address in Liberia;
  • A Liberian foreign maritime entity is not required by law to submit annual audited financial statements.

The Liberia branch office

A Liberian branch office is an entity whose scope of operations will be defined by the parent company. This entity must appointed legal representative or agent who is authorized to accept service of court processes and other official government documents on behalf of the parent company, and who must reside in Liberia. Also, the branch office must have a registered address in Liberia with a post office to which all communications and notices may be addressed and must maintain statutory records in this office.

Table of comparison between Liberia entities

 LLCCorporationPrivate FoundationFMEBranch
How long to set the company up?1 week8 weeks10 weeks10 weeks10 weeks
How long to open company bank account?4 weeks4 weeks5 weeks5 weeks6 weeks
Legal liability?LimitedLimitedLimitedLimitedUnlimited
Wholly foreign owned?YesYesYesYesYes
Minimum paid - up share capital?US$1US$1US$10,000US$1US$1
File annual tax return?NoNoNoNoNo
Tax registration certificate required?YesYesYesYesYes
Recommended corporate bank account?EcobankInternational Bank (Liberia) LtdUBA GroupUBA GroupxEcobankGlobal Bank Liberia Ltd
Does our Client need to travel?NoNoNoNoNo
Resident director required?NoNoNoNoNo
Resident shareholder required?NoNoNoNoNo
Minimum directors allowed?11111
Minimum shareholders?11311
Tax identification code needed?YesYesYesYesYes
Company secretary required?YesYesYesYesYes
Corporate shareholders allowed?YesYesYesYesYes
Corporate director(s) allowed?YesYesYesYesYes
Statutory audit required?NoNoNoNoNo
Liberia corporate tax rate?0%25%25%25%25%
Annual financial statements required?YesYesYesYesYes
Regulated by?LISCRLISCRLISCRLISCRLISCR
Allowed to issue sales invoices?YesYesYesYesYes
Allowed to sign contracts?YesYesYesYesYes
Allowed to import and export goods?YesYesYesYesYes
Can rent an office space in Liberia?YesYesYesYesYes
Can buy Liberia property?NoYesYesYesYes
Total Liberia business setup costs in yr. 1?US$6,430
Subsequent annual costs (incl. accounting and tax fee)?US$2,400
Sample engagement invoice?Liberia LLC invoice

Contact us

For additional information on our business setup services in Liberia, please email us at email@healyconsultants.com. Alternatively please contact our in-house country expert, Ms. Zhang Yi, directly:
client relationship officer - Zhang Yi
central bank of LiberiaMinistry of commerce and industryMinistry of finance development planningLiberia chamber of commerceLiberia national investment commissionliscr