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...
Read MoreIf 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.
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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.
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:
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.
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.
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.
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.
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