Everything you need to know to set up an operating company with a bank account.
• There are no legal penalties for disclosing the customer's bank details to third parties.
• Banks are not subject at all to strict customer due diligence regulations (old FATF recommendation 5 / new FATF recommendation 10).
• Banks are partially obliged to maintain sufficient records of customer and transaction data for law enforcement (old FATF recommendation 10 / new FATF recommendation 11).
• Banks and / or other covered entities are NOT required to report large transactions in currency or other monetary instruments to designated authorities.
• The national administration has sufficient powers to obtain and provide bank information on request without qualifications.
• There are undue notice and appeal rights against the exchange of bank information on demand without qualifications.
Liberian Corporation is the preferred type of entity for investors looking to form a holding company in the country. It requires only one director and one shareholder of any nationality for the incorporation process to be completed. The minimum paid-up capital required is US $ 500.000.
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 act as their registered agent. LLCs are not required by law to present their annual audited financial statements.
The non-resident LLC of Liberia 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 the standard authorized share capital is US $ 50.000 par value or 500 shares of no par value. The company must also appoint a registered agent, as well as a supervisory board, and must have a registered address in Liberia.
A non-resident Liberia LLC is not required to file annual statements or audited financial statements, but must maintain accounting records with the registered office to reflect the financial status of the business.
The Liberia private foundation must appoint at least one director and three shareholders, who can be of any nationality. Two of the shareholders must be natural persons. The minimum paid-up share capital required to complete the incorporation process is US $ 10,000.
A private foundation is popular with those who want to establish an entity to preserve a family's wealth-generating activities, such as transportation, operation, hotels, property, manufacturing, or service activities.) This entity must designate a registered agent and must have a registered address in Liberia.
Liberian private foundation is not required by law to submit audited annual financial statements
This non-Liberian business entity can register in Liberia to own and operate a ship flying the Liberian flag. Also, the non-Liberian business entity must have a good reputation in its own jurisdiction. The minimum paid-up share capital required to complete the incorporation process is US $ 1.
As a legal requirement, an FME must designate the LISRC Trust Company as a registered agent in Liberia and must have a registered address in Liberia. A foreign maritime entity in Liberia is not required by law to present its annual audited financial statements.
A Liberian branch is an entity whose scope of operations will be defined by the parent company. This entity must designate a legal representative or an agent who i) is authorized to accept court proceedings and other official government documents on behalf of the parent company; and ii) permanently resides in Liberia. In addition, the branch must have a registered address in Liberia and must maintain legal records at this office.
A Liberian LLP is an ideal business vehicle for foreign entrepreneurs who want limited liability and are not likely to be regularly involved in business. The company must designate a minimum of 1 general partner and 1 limited partner.
This type of company is generally engaged in real estate, manufacturing, or other related business activities. In a Liberian limited liability partnership, the general partner has unlimited liability, while the limited partner has liability limited to the amount of his investment in the entity.
The general partner oversees and controls the day-to-day business operations of the company. The minimum paid-up share capital required to complete the incorporation process is US $ 1 in this case.
Foster Swiss helps our Clients secure offices or we provide an office address. Most emerging markets require our Clients to have a 12-month office lease before company registration is approved.
We help our Clients overcome this challenge in the following ways:
DDepending on the country and city, the rates range from US $ 900 to US $ 2000 and the annual active virtual office services range from US $ 1500 to US $ 4000).
LThe one-time fee is US $ 850. Thereafter, our Client pays the monthly rent directly to the owner).
D Depending on the country and the city, the rates range from US $ 5.000 to US $ 8.000).
The standard corporate tax rate that applies to all net profits derived from Liberia is a rate of 25% of taxable income or 2% of turnover for companies in general, while mining and oil companies pay a tax. corporate at a rate of 30%. Tax returns are filed annually and the fiscal year runs from January 1 to December 31, so taxes must be filed before March 31 of the following fiscal year.
Branches pay a 25% corporate tax rate and there is no tax on branch remittances in Liberia. There is no VAT in Liberia, but the goods and services tax is applied at a rate of 7%.
Capital gains are not taxed separately and are subject to the applicable standard corporate tax rate.
Withholding of taxes on i) interest paid to non-residents at a rate of 15% ii) royalties paid to non-residents at a rate of 15% and royalties paid to mining companies at a rate of 5% iii) dividends paid to non-residents at a rate of 15% iv) rents paid to non-residents at a rate of 15% and v) administrative fees and technical services paid to non-residents at a rate of 15%. Losses can be carried forward for a period of five years and can be offset by capital gains on disposal of the investment within one fiscal year.
Stamp duty is charged at variable rates between 1% and 12,5% on bills, agreements, promissory notes, bonds, leases and power of attorney.
Employers must submit social security contributions to the relevant authorities on behalf of their employees at a rate of 4,75%.
Liberia does not have exchange controls and entities can repatriate funds and profits from the country. Investors can open and operate currency accounts in Liberia and use those currencies to operate their investments.
Liberia has entered into treaties to avoid double taxation with Germany and Sweden. All corporations that have issued bearer shares or have elected to retain the ability to issue bearer shares in their Articles of Incorporation must annually submit affidavits to the Registrar on or before the anniversary date of incorporation.
Ehe total tax paid by companies with full residence in Liberia can be very high.
Corporate tax in Liberia can reach up to 47,8% if the business structure is poorly planned.
Although this jurisdiction is not blacklisted, the Liberian economy is still based on cash. US dollars are considered legal tender and Liberia can be perceived as a facilitator of US dollar currency laundering.
Banking in Liberia is not a suitable option for international businessmen, instead Foster Swiss will be happy to open a multi-currency international corporate bank account without our Client traveling.
During the 2014-15 period, most of Liberia's industries faced a significant reduction in their economic activities due to the Ebola outbreak. The nation is still recovering from the extensive socioeconomic damage caused by this widespread disease.
All corporations that have issued bearer shares or have elected to retain the ability to issue bearer shares in their Articles of Incorporation must annually submit affidavits to the Registrar on or before the anniversary date of incorporation.
The national business registry does NOT include the identity information of the legal owner.
Companies are available without proprietary information.
There is no update of information on the identity of the legal owners.
Companies available without registered information on beneficial owners.
Real property is not always available online (up to 10 EUR / GBP / USD)
• It is mandatory to keep accounting data.
• It is not always necessary to present the annual accounts to a public authority
No country-by-country public reporting at all.
There is NO requirement for local submission of a country-by-country global reporting file (in accordance with OECD BEPS Action 13) by large corporate groups (with a worldwide turnover of more than 750 million euros) and local subsidiaries of foreign groups.
Unilateral cross-border tax rulings (for example, advance tax rulings, advance tax rulings) are NOT available in laws or regulations, or administrative practice.
• The use of an annually updated Legal Entity Identifier (LEI), developed under the guidance of the Financial Stability Board, FSB, is not mandatory.
• The use of an annually updated Legal Entity Identifier (LEI), developed under the guidance of the Financial Stability Board, FSB, is not mandatory for some financial market operators.
• The use of an LEI updated annually for the identification of reporting financial institutions (in accordance with the Common Reporting Standard (CRS) is not mandatory
<br>• No unilateral relief for double taxation through a tax credit system
None or restricted access to BOTH criminal and civil tax processes.
None or restricted access to BOTH criminal and civil tax judgments / verdicts
• The jurisdiction does NOT issue or accept the circulation of large notes / cash notes of its own currency (of a value greater than 200 EUR / GBP / USD).
• Unregistered bearer shares are available / outstanding or registered by a private custodian.
• Series LLC / Shielded Cell Companies are not available.
• Trusts with escape clauses are not prohibited.
Liberia is not on the FATF list of countries that have been identified with strategic AML deficiencies.
The last Mutual Evaluation Report related to the implementation of the rules against money laundering and terrorist financing in Liberia was carried out by the Financial Action Task Force (FATF) in 2011. According to that Evaluation, Liberia was found to be in compliance with 0 and largely complies with 0 of the FATF 40 + 9 Recommendations. Partially met or did not meet the 6 basic recommendations.
Liberia is classified by the US Department of State as a country / jurisdiction of primary concern regarding money laundering and financial crime.
Overall Non-Compliance Score of FATF Standards in Percentage: 85,7%.
(100% = all indicators rated as not met / low level of effectiveness; 0% = all indicators rated as completed or highly effective).
Liberia recently signed the MCAA and committed to sharing information in 2020 or later.
Number of significant activated AEOI relationships (under the MCAA) published by the OECD as of October 2019: 0
The international and digital banks They're available.
Real bank operations: 90%.
Type of visa: LRD, US $, €.
Joint accounts: SI.
Remote management account: To consult.
Asset management Depending on the rating of the company.
Rates: It depends on the type of account.
Credit / debit cards in local currency.
Crypto friendly banks: It depends on the correspondent bank.
Portfolio availability: It does not depend on the correspondent bank.
Ability to issue letters of credit: SI.
Foster Swiss is an international company registered in Switzerland aimed at providing financial and compliance advice on a variety of topics related to company formation
and commercial banking internationally. We are specialized in the implementation of businesses in different jurisdictions, which means that we offer value-added services helping our clients in their expansion abroad.
Some of these services include:
Advice and consultancy,
visas, offices, nominated director / shareholder / secretary,
accommodation if necessary… to name a few.
Check with your assigned consultant for more information.