Liberia is a state in Africa that is trying to attract more and more foreign investment to the country, so there is a loyal taxation system here. All income generated by the company outside Liberia is tax-exempt, so this will be a profitable solution for foreign businessmen. Moreover, you can register a firm remotely.
Setting up a business in the offshore jurisdiction of Liberia
The most popular form of offshore business is the creation of a local LLC, which is built on the American model.
The minimum requirement for an LLC is the presence of one member, and he can be not only an individual but also a corporate person and have any citizenship and residence. The company requires a secretary and does not need to pay the share capital.
An important feature is that information about the beneficial owner does not appear on any public list and may not be submitted to local authorities.
You can create a company without an account in 1 day. And a bank account will take time since the reputation of offshore Liberia is still not the best. Therefore, not all companies in the world offer services for setting up companies in Liberia.
Another popular form of doing business and offering a certain degree of secrecy is the non-resident domestic corporations. Creation requires at least one director and one shareholder, as well as a secretary. Directors and owners can be foreigners, including corporate persons.
It is not necessary to report on the true owner and beneficiary, as in the case of an LLC, and the authorized capital may not be paid.
It is also necessary to talk about the most transparent and modern form of doing business – a Registered Business Company (RBC). It is very similar to a corporation, but in this case, information about directors and owners falls into the public register. In this case, the company must fill out annual reports without fail.
If nevertheless, you are interested in more transparent business management and there is an interest in Africa, other offshore zones of the continent cannot compete with offshore Liberia.
Interesting fact: according to the requirements of the OECD, companies owned by foreigners do not need to fill out reports and keep them at home. However, local authorities that are concerned about fixing a country’s reputation may still request such reporting. Therefore, if you decide to conduct business in offshore Liberia, then it is worth keeping the reporting at hand.
Corporate taxes in the offshore jurisdiction of Liberia
Liberia is an offshore company and offers significant tax breaks. In particular, LLCs that are owned by foreign individuals and companies are exempt from taxes on all worldwide income. Only what was earned on the territory of Liberia will be subject to average taxes.
Roughly the same applies to corporations owned by non-residents, except that some income from the use of ships along the coast will be taxed.
Foundations offshore Liberia
Liberia also has fund laws in its arsenal. They are not popular, but they offer high secrecy, since, like with an LLC or corporation, there is no need to report on the beneficiaries.
The law was created based on Austrian rules, and to register a private foundation, you need to invest at least $ 10,000.
Banks in the offshore jurisdiction of Liberia
There are only 9 banks in the country, while it cannot be said that these are highly developed and advanced institutions. They perform their local functions and do not like working with foreigners very much (although most of them belong to individuals and foreigners). Although, if you offer to deposit in the region of $ 100,000, they will at least talk to you.
Offshore companies use foreign accounts to make it easier to work in the world, although, as you already know, Liberia’s reputation gets in the way.
The oldest bank is Liberian Bank for Development and Investment, partly owned by the government. The rest have different owners (private owners and international organizations): Ecobank, International Bank, Global Bank, First International Bank Liberia, United Bank for Africa Liberia, AccessBank Liberia, Guaranty Trust Bank.
