If you’re expanding to Liberia, the first task on your to-do list needs to be setting up a subsidiary. Your subsidiary will help you operate legally in the country, and it’s the first step to hiring employees, establishing a payroll, and providing compensation and benefits. However, many companies need weeks or months to successfully set up a subsidiary, which sets back their entire operating schedule.
Companies that don’t have the time or money to establish a subsidiary can benefit from Liberia subsidiary outsourcing with Globalization Partners. We allow companies around the world to use our existing infrastructure for their expansions instead of having to establish their own entity. Plus, we take on all matters of compliance as the Employer of Record, so you can focus on building your company.
How to Set Up a Liberia Subsidiary
Once your company starts to consider how to set up a Liberia subsidiary, you need to look at restrictions to foreign investment in Liberia. The country has significant regulations on industries such as stone and granite, ice manufacturing, commercial printing, cinemas, poultry products, and more. Foreign investors need at least $500,000, or $300,000 if they have a Liberian partner, to invest in these sectors. Also, infrastructure can be difficult, and only Liberian citizens can own land, rent, or lease property.
Location is another important factor, as separate cities and regions can have different costs, availability, and rules. If you’re not familiar with the different areas, you’ll need to find an accountant, legal advisor, or consultant who can recommend the best places for incorporation in the country.
Most companies decide to incorporate as a limited liability company (LLC) because that structure gives them the most freedom to operate in Liberia. The steps to setting up your Liberia subsidiary as an LLC include:
- Reserving a unique company name at the Liberian Business Registry (LBR) help desk
- Submitting the company registration application to the LBR
- Obtaining a Tax Identification Number (TIN)
- Receiving a business registration certificate
Liberia Subsidiary Laws
LLCs have different requirements than other structures in Liberia, such as a private foundation, a foreign maritime entity (FME), and a branch office. You’ll need one director as well as a single shareholder of any nationality to finish the process of incorporation. The minimum paid-up share capital requirement is $500,000.
An LLC must appoint a registered agent and have a legal registered address in Liberia. The law requires all Liberian companies to appoint LISCR Trust Company to serve as their registered agent, but they do not need to submit annual audited financial statements.
Benefits of Setting Up a Liberia Subsidiary
Once you officially incorporate in Liberia, you can benefit from working in the country, forming new business relationships, and hiring talented employees. Establishing an LLC will also give your parent company the protection it needs from the subsidiary’s actions, and the subsidiary can operate independently of the parent company.
If you’re feeling overwhelmed by the incorporation process, Globalization Partners can help. We provide more benefits than simply going through the Liberia subsidiary setup process. We’ll save you valuable time by helping you work in a day or less. Our company will handle all of Liberia’s subsidiary laws on your behalf, so you can focus your time on running your company.
Other Important Considerations
Most companies need weeks or months to prepare for the incorporation process, and we recommend starting with time and money. Your company will spend weeks or months establishing a subsidiary, so you should delegate tasks and have key company players clear their schedules. It’s also important to work with your accounting department and set aside all the necessary funds for the process.
Finally, if you don’t have an expert in Liberia’s subsidiary laws, you should find someone who can help. Work with a consultant, lawyer, or accountant, or have one of your current staff members learn the applicable laws. Following all of Liberia’s subsidiary laws will help you stay compliant and avoid any fines or delays.
Let Globalization Partners Help With Your Expansion
Globalization Partners is here to help you thrive during your expansion no matter your industry or chosen region. Contact us today to learn more about Liberia subsidiary outsourcing.
THIS CONTENT IS FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE LEGAL OR TAX ADVICE. You should always consult with and rely on your own legal and/or tax advisor(s). G-P does not provide legal or tax advice. The information is general and not tailored to a specific company or workforce and does not reflect G-P’s product delivery in any given jurisdiction. G-P makes no representations or warranties concerning the accuracy, completeness, or timeliness of this information and shall have no liability arising out of or in connection with it, including any loss caused by use of, or reliance on, the information.