When looking for a jurisdiction in which to incorporate, the first thing to look at is the legal code. The body of law in Sierra Leone is mixed (english and customary law) law. You will want to get some local advice as to how to best structure a company in Sierra Leone. Electronic signatures are permitted.
The letters SL is for Sierra Leone and the most common legal entity type in Sierra Leone is a LLC.
The average time to incorporate is 20 weeks to setup a LLC in SL. The min share capitalization is SLL 0, This means you don't have any minimum share capital. The types of cash you can use to capitalize your business is often any legal tender.
There must be at least 1 shareholder. This makes it possible for you to own a LLC in SL by yourself. Corporate Shareholders are allowed, meaning you could have a company as a shareholder. Foreign ownership is tolerated, up to 100% of the ownership of the LLC.
A company is only required to have 1 director on the board. Additionally, corporate directors are permitted. Directors should not expect to be private, as they are disclosed. There is a requirement to have annual meetings of shareholders.
A registered legal firm must be retained for an address, paid by the company on an annual basis, for an address which can receive litigation or other legal process on behalf of the business. A related requirement, a company secretary is not always necessary, at least not by law.
There is a legal obligation to file accounts on a yearly basis. Consequently, there is oftentimes a requirement to have these accounts audited.
Thin capitalization rules are in effect. A company is thinly capitalised when there is a greater proportion of debt than equity. The minimum capitalization for a Sierra Leone Mixed (English and Customary law) is SLL 0.
A corporate director is permitted, meaning this country is a good option if you are setting up a structure where you want to protect director liability.
The directors are disclosed in the public registry of Sierra Leone, OARG. Shareholders are not disclosed in the OARG.
Typically companies take 20 weeks to setup and there are 1 director(s) required and 1 shareholder(s) required at the time of incorporation.
Overall we think Sierra Leone is a bad option and have given it a score of 28 as an IO score, using the Incorporations.IO proprietary formula.
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