Investment Incentives Code
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Photo Credit: NIC
Photo Credit: NIC
The most pertinent document in the area of industrial policy is the Investment Incentives Code of Liberia. The Code enumerates the kinds of economic activities the government whishes to encourage and the types of incentives it will offer to investors engaged in those industrial activities.
According to the Code, the Government of Liberia encourages industrial enterprises which:
Utilize, to the highest possible extent, Liberian manpower at all levels and contribute to advancing their skills through training schemes (on-the-job) and otherwise
General and legal requirements for establishing a business in Liberia
Non-Liberian investors may invest and participate in any business enterprise in Liberia unless otherwise prohibited.
Foreign investors/entrepreneurs may buy the shares of any Liberian business.
Any individual/business desiring to engage in a commercial or industrial activity in Liberia should be registered with the Ministry of Commerce and Industry prior to the commencement of business operations.
Procedure and requirements
Individual business or individuals wishing to register with the government should firstly submit a letter of application to the Minister of Commerce and Industry stating propose(s) name, nature, and location of the business.
The following requirements should be obtained:
For a Sole Proprietorship
For a Partnership
Corporation
Profit Repatriation and Currency
Investment laws are globally competitive. Liberia offers 100% repatriation of funds and no currency exchange restrictions; these may include profits and dividends (net of taxes), remittance of moneys (net of taxes) in the event of the sale or liquidation of the business, repayments of loans acquired from foreign banks, and etc.
According to the Code, the Government of Liberia encourages industrial enterprises which:
Utilize, to the highest possible extent, Liberian manpower at all levels and contribute to advancing their skills through training schemes (on-the-job) and otherwise
- Utilize raw materials and products of Liberian origin to the maximum extent
- Utilize as much as possible, ancillary activities available in the productive and service sectors of the Liberian economy,
- Contribute to making Liberia independent of imports of basic necessities to the extent economically feasible, thus saving foreign exchange,
- Contribute to the extension and diversification of Liberia’s exports
- Contribute to increased employment all over the country.
General and legal requirements for establishing a business in Liberia
Non-Liberian investors may invest and participate in any business enterprise in Liberia unless otherwise prohibited.
Foreign investors/entrepreneurs may buy the shares of any Liberian business.
Any individual/business desiring to engage in a commercial or industrial activity in Liberia should be registered with the Ministry of Commerce and Industry prior to the commencement of business operations.
Procedure and requirements
Individual business or individuals wishing to register with the government should firstly submit a letter of application to the Minister of Commerce and Industry stating propose(s) name, nature, and location of the business.
The following requirements should be obtained:
For a Sole Proprietorship
- Notary certificate
- Prospectus of the business
- Official revenue receipt (foreign owned enterprise)
- Official revenue receipt (Liberian owned enterprise); costs to be determine by the Ministry of Foreign Affairs
For a Partnership
- Probated partnership agreement
- Notary certificate
- Properties of business
- Official revenue receipt
Corporation
- Articles of incorporation to be processed through the Ministry of Foreign Affairs with a revenue stamp affixed; registration and filling fees to be determined by the Ministry of Foreign Affairs
- For a corporation established under the laws of Liberia, submission of an authenticated copy of memorandum of association signed by the incorporators is required.
- For a foreign corporation, submission of documentary evidenced of incorporation and power of attorney duly notarized by the prospectus
- Foreign companies must either have a registered agent residing in Liberia or a resident office.
Profit Repatriation and Currency
Investment laws are globally competitive. Liberia offers 100% repatriation of funds and no currency exchange restrictions; these may include profits and dividends (net of taxes), remittance of moneys (net of taxes) in the event of the sale or liquidation of the business, repayments of loans acquired from foreign banks, and etc.
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