Business
The Association Law, and a globally significant offshore corporate and maritime registry
The Association Law (title 5) governs corporations, partnerships and foundations on an American model. Liberia's distinguishing feature is its non-resident corporation regime and open maritime registry — one of the largest ship registries in the world — administered through the Liberian International Ship and Corporate Registry.
Key rules
- Jurisdiction — Liberia Business Registry for resident companies; LISCR for non-resident corporations and vessels; Civil Law Courts and the Supreme Court for disputes.
Governing law
- Association Law, Title 5, Liberian Code of Laws Revised — American-model corporations; non-resident corporation regime.
- Maritime Law, Title 21, Liberian Code of Laws Revised — Open registry; Liberian jurisdiction over flagged vessels.
- Investment Act of Liberia, 2010 — Sector reservations and investor incentives.
In practice
Title 5 of the Liberian Code of Laws Revised provides for business corporations with articles of incorporation, bylaws, directors and officers in the Delaware idiom, together with partnerships, limited partnerships and non-profit corporations. The internationally significant part is the non-resident corporation: Liberia permits incorporation of entities that do not conduct business in Liberia, with confidentiality and tax exemption on foreign income, administered offshore by LISCR under long-standing arrangements. The associated open maritime registry, established in 1948, registers a very large share of world tonnage and applies the Liberian Maritime Law (title 21), with Liberian-flagged vessels subject to Liberian jurisdiction — which makes Liberian maritime and corporate law disproportionately important in international shipping practice relative to the domestic economy. Domestically, the Liberia Business Registry handles resident company registration, and the Investment Act 2010 reserves certain sectors to Liberian ownership.