Liberian entities are simple to form and administer, they are cost efficient and highly confidential. The Liberian Corporation is one of the oldest and most popular types of entity. It can be formed with only one director and one shareholder. No annual filings are required and the company will be exempt from income and withholding taxes. Liberian companies are well accepted by all commercial institutions.
Liberian business entities can be utilized for a wide range of activities including:
- International trade;
- Real estate investment;
- Joint ventures;
- Holding securities and bank accounts;
- Trust and estate planning;
- Management of investment portfolios;
- Asset ownership and any other non-licensable business activities.
Liberian corporation formation and maintenance fees
- Incorporation fees - US$ 890. This amount includes the first year's annual registration tax to the Government of Liberia and the annual fee to the Registered Agent.
- The annual cost of maintaining a Liberian corporation is $650, which includes the Government tax and the Registered Agent's annual fee.
There is one more popular entity in Liberia designed to provide the limited liability features of a Corporation with the operational flexibility of a Limited Partnership. It is called Limited Liability Company (LLC). The LLC does not pay taxes and any profits or losses are reported on the individual member's tax return.
The LLC has a separate legal personality which means that members and managers of an LLC are not personally obligated for the liabilities of the LLC and the members are not public. Each LLC must have a minimum of one member, and the LLC's members can appoint professional managers. The LLC Agreement is a principal operating document and outlines the respective interests, roles, and rights of its members, as well as statements relating to the intended affairs, conduct, and purpose of the entity.
The Liberian LLC Agreement is not filed with the Registry and therefore it is not a matter of public record.
Liberian Limited Company formation and maintenance fees are the same as of Liberian corporation.
A special Liberian entity is the Liberian Private Foundation based on the best elements of the civil law foundations of Europe, but adding unique Liberian features to create a modern, flexible and affordable private estate-planning vehicle. The Private Foundation is a separate legal entity that cannot trade but can hold assets such as corporations, trusts, bank accounts, investment accounts, real estate, or any other type of assets. The Private Foundation is the legal and beneficial owner of its assets.
Unlike a common law trust, the intended beneficiaries of the Private Foundation cannot combine after the death of the donor (founder) to end the Private Foundation and sell the assets. The Liberian Private Foundation requires limited public filing, and does not provide for disclosure of the donor or beneficiaries.
The Foundation's operative documents are not filed in the Registry.
Officers, appointed by the donor, are responsible for the management of the Private Foundation and may be guided by a supervisory board. The donor has the power to remove the officers of the Private Foundation and direct the distribution of income from the Private Foundation. The donor can remain anonymous but can oversee the administration of the Private Foundation by appointing himself to the supervisory board. Officers determine distribution of income and capital in accordance with the donor's instructions.
Liberian Private Foundation formation and maintenance fees are the same as of Liberian corporation, with the exception of the initial capital, which should not be less than US$ 10 000
Foreign Maritime Entity (FME)
A non-Liberian business entity, such as a foreign corporation, partnership, or other legal person, may own a Liberian-flagged vessel by registering the non-Liberian entity in Liberia as an FME. In order to register as an FME, the foreign entity must have legal existence in the country where it has been incorporated, the power to own a vessel, and the capacity to sue and be sued in its own name. It must also remain in good standing in the country where it has been incorporated and in Liberia.
- Liberian Foreign Maritime Entity registration fee is US$ 1850.
- The annual cost of maintaining a Liberian FME is US$ 790.
Please get in touch email with us if you need a Liberian Corporation, an LLC, a Liberian Private Foundation or a Foreign Maritime Entity or would wish to learn more details.
- Links related to Liberian companies formation:
- LIBERIAN CODES OF LAWS REVISED