Liberia is shooting to loosen up its business environment for investors and businesses. Unlike what used to be the case in the past where all registration of businesses has to be done online, the Liberia Business Registry (LBR) has launched a website which has an online application for effective and efficient service delivery to the business community. The service became effective Wednesday, July 3.
What The Liberian Online Business Registration Looks Like
- With the new online platform, the time limit for establishing a business in the country would be significantly reduced.
“People from Pleebo, Nimba, Lofa and all far-to-reach areas will no longer have to commute to Monrovia, and bear the cost of transportation and accommodation just to get registered or obtain Articles of Incorporation, said Mr. Dee, Registrar General of the Liberia Business Registry.
- The website also will provide different kinds of corporate registration information and will help taxpayers directly apply for certificates and Articles of Incorporation with a user account, according to Registrar General Samson Dee.
- The reform is coming after Liberia’s President George Weah established the “Business Climate Working Group” which informed the establishment of the Website and online Application.
The Challenges Of Setting Up Business In Liberia Is Noted In This Statement From Mr. Dee
“There have been series of challenges, in fact the last rating that came up from the World Bank, said it was taking Liberia 18 days to register a business in the Country and I think we all know that this is highly unfriendly when it comes to the business sector. So, on that basis President George M. Weah, set up a Business Climate Working Group, of which we are member and we were tasked with the singular responsibility to turn the picture around to improve the business climate and ensure that we attract investors from every part of the world,” he said.
“We heard the Registrar General say there are foreign entrepreneurs who may come to Liberia and may like to have information of doing business in the Country, and this development will undoubtedly help in the process.” Acting Commerce and Industry Minister Mr. Wilfred N. Bangura observed.
Under Liberian corporate law, all businesses are required to register or apply for a Business Registration Certificate to authorize doing business or providing services in Liberia.
The Liberia Business Registry (LBR) under the Ministry of Commerce and Industry (MOCI) handles the applications and business registration processes. The fee structure for registration varies depending on whether a business is local, foreign, a sole proprietorship, a partnership, or a corporation. The standard steps to follow in establishing a local business office are noted below:
- Reserve a unique company name with LBR: an applicant can do a name search online or at the LBR helpdesk; business names can be reserved for up to 120 days.
- Register the company using the registration application form (RF-001), and submit the completed application with the company’s articles of incorporation, proof of identification, empowered person’s or registered agent’s form, incorporator’s form, shares and shareholders’ form, and information for tax authority form.
- LBR will review the application package and request a Tax Identification Number (TIN) and bank payment slip (BPS) on behalf of the business in question; all businesses operating in Liberia must have a TIN, which is obtained free of charge from Ministry of Finance and Development Planning.
- Once a TIN has been obtained, pay associated business registration fees at the Central Bank of Liberia (CBL)’s window at LBR or use the mobile money payment system; mobile money services are provided by the two leading mobile network operators, Lonestar MTN and Orange Liberia.
- Present the proof of payment to the LBR registrar where the process is completed.
The entire process takes one to four weeks. Registration of business is valid for 12 calendar months from the date of registration. Conducting commercial activities in Liberia without being registered will result in penalties.
The LBR publishes a fee schedule for new enterprise registrations applicable to different types of legal entities.
All that will now have to be done online with this new move.
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based Lawyer with special focus on Business Law, Intellectual Property Rights, Entertainment and Technology Law. He is also an award-winning writer. Working for notable organizations so far has exposed him to some of industry best practices in business, finance strategies, law, dispute resolution, and data analytics both in Nigeria and across the world.