By way of history, Liberia is one of the first countries declared to be a Republic in Africa, since its establishment in 1820. The freedom and independence of Liberia was further established on 26th July 1847. Its legislative history and judicial system is largely modeled on the Anglo-Saxon regime, in other words English Common Law, similar to the situation in Malta especially when dealing with corporate law. The Liberian Registry was later on established in 1948, thereby obtaining the reputation of having a well-known and respected jursidiction for both corporate and shipping services.
Such reputation has been awarded as a result of its democratic political system which is based on the United State's political system as well as having English as the official language of the country thereby facilitating communication with other countries. Even though Liberia is usually classified as a low income country and is heavily dependent on foreign assistance it has no international banking restrictions or sanctions imposed against it. Moreover Liberia is considered to be an OECD White-listed country due to its adherence to the OECD's principles and guidelines.
For these reasons, Liberia is witnessing a rise in the number of offshore enterprises establishing themselves in Liberia in order to take advantage of the many positive aspects and benefits in connection with the jurisdiction. The following are but some of the benefits which a corporate entity may benefit of:
- No personal tax shall be imposed on employees of non-resident bodies;
- No corporate tax shall be imposed on corporate profits on non-resident bodies;
- No withholding tax shall be imposed on dividends, interest or other non-resident income;
- No capital gains tax shall be imposed on gains relating non-resident bodies;
- No estate tax shall be imposed on non-residents; and
- No transfer tax shall be imposed on non-resident entities.
Barring the above tax exemptions, Liberia's jurisdiction is closely affiliated to that of Malta due to the same legal basis of both jursidictions. It is also recognised internaltionally by all major banks and financial institutions. The process is also facilitated due to the electronic registry services which allows efficiency and prompt response with regard to formations, certificates and filing of documents.
Minimal filings are required to maintain the company and no annual reporting or audits for offshore companies are required. More importantly, the principle of anonymity is widely respected due to the strict confidentiality rule imposed.
Chetcuti Cauchi provide assistance in the setting up of offshore companies in Liberia. Its close affiliation with other domestic companies eases the process making the client's involvement simple and minimal.
