Companies
So you have decided to pioneer liberty and decentralization by opening a company and doing business in Liberland.
The benefits of a Liberland company are a less regulated and untaxed business environment, access to Liberland clients, markets, and justice system, as well as bragging rights and the patriotic contribution to the official GDP of Liberland.
Given the early stage of Liberland and its current status as a country not yet recognized by the UN, it is important to note that Liberland companies are not a way to evade tax in other countries. For example, if you are selling physical products in the USA, to USA clients, with USA workers, a Liberland company will not help in reducing tax obligations as far as US law is concerned.
However, if your company is either operating soley online (no physical storefront), or with cryptocurrency, or with clients from Liberland or in the territory of Liberland itself, opening a Liberland company makes sense.
This article will explain how to create a company to operate in Liberland's blockchain system and economy or open a subsidiary of another company, how to handle payments either in Liberland itself or internationally or on-chain, how to sign and enforce legally binding contracts in Liberland or international jurisdictions, and how to issue stock or other assets and list on the Liberland stock market.
You will need to spend between 10 and 250 LLD for the process.
Choosing personal or company account
Any person, wallet address, or account can create a company on the Liberland blockchain. However, to be officially registered as a business within the nation of Liberland, it needs to satisfy some minimal requirements such as being an e-resident of Liberland.
The first decision is choosing whether you want to open a company under your own personal account/wallet, or to create a new company account.
We recommend setting up a new company account (wallet address) to keep business transactions and contracts separate from your personal finances. You can use your wallet app (e.g. SubWallet, Talisman, etc.) to derive a new account from your existing private key, or generate an entirely new private key and keep your personal and company wallets completely separate. If you're still new to how blockchains work, we recommend deriving a second wallet from your existing key. Your preferred wallet app will guide you on this.
However, if you're the sole person in your company, you might prefer to use your personal account. Your choice depends on your business needs and your current jurisdiction.
It is easy to switch between many accounts at blockchain.liberland.org in the menu wallet selector.
Note: The menu wallet selector does not currently appear when using Talisman. It does, however, appear when using SubWallet or Polkadotjs.
After selecting an account, ensure it has at least 2 LLD to exist on-chain, then update your identity details including your display name and contact information on your profile page.
This step is crucial as it enables others to easily transfer tokens to your address by searching for your display name through the wallet at blockchain.liberland.org.
Choose company type
There are 4 main company types to consider, depending on your business needs and risk tolerance.
Dormant company
Dormant companies indicate intention to do business in Liberland 'later', for example after international recognition. This gives bragging rights and contributes to the legitimacy of Liberland, but is otherwise useless. They pose no risk at all, and have no requirements except filling out the form and mentioning it is a dormant company.
"Goodboi" subsidiary company
The "goodboi" company structure is the one that assumes a hostile institution from another country is looking into your activity in Liberland, and attempts to be maximally compliant in case your country of residence assumes the non-existence of your Liberland company. It is the least useful but also least risky form of a Liberland company.
The benefits of a "Goodboi" company are a less regulated business environment, access to Liberland clients, markets, and justice system, as well as bragging rights and the patriotic contribution to the official GDP of Liberland.
In a 'goodboi' company structure, you are required to report all your income to your country of residence and pay all the taxes on your income that your country of residence requires.
A parallel company must exist in your country of residence.
Any money earned in Liberland through this company should be converted into LLD or other widely tradeable currencies, exchanged for fiat on an exchange, and paid out to your parent company's bank account.
Normally, only this last fiat transaction needs to be reported in the other country.
Note that regulations vary from country to country, so make sure to follow the parent company's local law. This process should be sufficient for small businesses in USA, EU, and countries with similar regulations.
Example Goodboi company charter template can be found here
Territorial tax residency company
If you live in a country that doesnt have worldwide tax obligations for residents and citizens, and instead has territorial-based taxation (e.g. Panama, Costa Rica or others), and you sell services in Liberland, online, on Liberland blockchain, or use other crypto in business, you can open a Liberland company with solely Liberland (a.k.a. voluntary) tax obligations.
These kinds of companies can also open bank accounts.
Charter template for this company found here
Pure Liberland company
A pure Liberland company is physically headquartered in Liberland, by people who physically and legally live only in Liberland.
In this case, only Liberland law and voluntary tax code need to be followed.
Pure Liberland company charter template
Other
Liberland has very few regulations about company structures, therefore trusts, DAOs, NGOs and all other kinds of entities are possible. As long as you have a valid contract, follow Liberland law, and don't use Liberland companies for international fraud/crime, you can register it.
Here are just some of the examples:
More examples to come
Create contracts (optional)
In addition to your charter contract that you should register on-chain, your company may be subject to other legally binding agreements in accordance with Liberland law, or you may choose to execute and register contracts with clients or other stakeholders.
Should you desire, it is possible to directly include these agreements within your company registration.
Please be aware that drafting contracts may necessitate legal expertise specific to the law of Liberland to ensure they are correctly established.
Do not hesitate to ask for help in Signal, Telegram or email; there is a helpful community as well as Liberland companies and professionals available who specialize in providing these services.
By default, contracts on-chain are in Markdown format.
Once you have a contract ready, create it by pasting its content and adding all relevant signatures/parties at the contracts tab athttps://blockchain.liberland.org/home/contracts/my-contracts
We are working on an easy-to-use contract builder, but it will take time to finish.
Once the contract is finalized, you can find it under My contracts after you refresh the page.
Please copy its link and distribute it to the relevant parties and judges for their signatures.
The most frequently utilized 'judge' for this purpose is the official court of Liberland, which can be contacted through groups on Signal, Telegram or email.
Create company
To create a company, in https://blockchain.liberland.org/home/registries/companies/overview choose registries on the menu and select My companies -> Register company
This will lead you to a form for requesting company registration. Not all fields are required, so you may omit any that are not applicable to your situation.
Regarding 'Editable by registrar' field, it is best to enable it. This allows the Liberland company registrar to modify your company's information if your account becomes inaccessible or if you are legally found to have violated laws.
It is important to note that most registrars require this option to be selected during company registration.
Sign the transaction and your company request for registration is ready!
The last step is to read the Terms and Conditions
It should take about a day for the request to be approved.
After the company registration is approved, you can obtain the Certificate of Incorporation by clicking the generate certificate button under My Companies.
Your company will also appear in the list of Liberland companies for other citizens and clients to see.
Handling payments
Although Liberland does not impose specific regulations regarding the methods, currencies, or reporting of payments, conducting business transactions on the Liberland blockchain is advisable as it is good for Liberland's further development, particularly when engaging in legally binding contracts.
Assets that are currently available on Liberland blockchain are LLM, LLD and stablecoins like LLEUR and USDT. While Bitcoin and other cryptocurrencies are accepted, it's important to note that they operate on their respective blockchains, separate from Liberland Blockchain.
Nevertheless, 'wrapped' versions of these cryptocurrencies can be accessed via bridges, allowing, for instance, for transactions in 'bitcoin stablecoins' within the Liberland Blockchain ecosystem.
LLD offers the most straightforward exchange options, including conversions to USDT, BTC, other cryptocurrencies, or fiat currencies such as USD and EUR. This flexibility enables you to conduct business with LLD internationally, or with any other cryptocurrency.
Should you choose, you have the flexibility to issue invoices in USD, then convert the amount into LLD for transactions, such as paying for services from another company. Additionally, you may convert LLD into Bitcoin for long-term investment purposes, among other possible financial strategies.
The government's role is not to dictate how you manage your finances, but to offer support and assistance as you navigate these processes.
Fundraising, Assets and the Stock Market
Similar to other blockchains equipped with smart contract capabilities, you have the opportunity to create tokens and assets underpinned by smart contracts. It is possible to structure these tokens/assets as shares of your company and link it to a shareholder agreement.
According to Liberland and international law, though, at this point only citizens and residents of Liberland can be shareholders in Liberland companies.
While Liberland does not prescribe other regulations for such agreements, they typically aim to motivate investment in your company by offering benefits such as profit sharing or voting rights, akin to conventional company stock practices globally.
After the asset or stock has been registered, you can then list it on the Liberland DEX/stock market.
When available, the Liberland DEX/stock marketing listing process will cost 200 LLD.
Please be aware that if you list an asset that could be subject to regulation in other countries, such as cryptocurrencies in general, stablecoins, or "securities" (including stocks, bonds, futures, or assets representing commodities), it is likely that such activities are regulated abroad.
For instance, the United States has specific regulations concerning the trading of securities.
Therefore, it is crucial to comply with the local laws of any country in which you intend to resell stock or conduct similar transactions.
For these reasons, under Liberland law, it is not yet allowed to sell stock assets to non-Liberlanders, to avoid potential problems.
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