The Marshall Islands, although located in the west of the Pacific Ocean, are associated with the United States and have the same status as, say, Puerto Rico. They gained their fame with the help of international companies with zero taxation and ample ship registering opportunities. Thanks to these factors, set up a company in Marshal Islands will bring convenience and flexibility in use, as well as low-cost registration and maintenance.
Additionally, the offshore in the Marshall Islands is suitable both for Internet services and conducting trading operations. Thus, this state is a classic place to open an offshore company. The absence of taxes when generating income from abroad, the simplicity and quick process of Marshall Islands company formation, the lack of annual reporting, and political stability are factors that determine a good offshore.
There are many benefits of Marshall Islands company registration as The Marshall Islands continues to be a popular jurisdiction for entrepreneurs and investors alike.
Atrium Business Solutions
Why set up offshore company in Marshall Islands
In recent years, the country has developed a significant wholesale and retail sector in large urban areas, as well as a growing financial sector, including banking and insurance services. A separate source of replenishment of the budget Marshall has been and remains the registration of international business companies (IBCs). Despite the problems associated with the functioning of offshore jurisdictions around the world, local companies are still popular due to the fact that using US protection, they are not going to abandon their classic offshore legislation.
Marshall’s IBC is a very flexible legal entity with only a few restrictions on businesses that such companies cannot carry out. Marshall Islands offshore company can engage in any legitimate entrepreneurial activity, except for gaming and financial services, for example, banking, insurance, and trust.
Ways to register company in Marshall Islands
The IBC registered in the Marshall Islands is also prohibited from doing business with citizens or companies established by them. However, they can maintain professional contacts with lawyers, accountants, trust companies, managers or secretarial companies, investment advisors or other similar persons or organizations engaged in their activities. IBCs, as a separate type of local corporations, are exempt from all forms of local taxes.
IBCs are considered non-resident legal entities of the Marshall Islands, therefore they can be registered as the sole shareholder, which can be both an individual and a corporation. Marshall Islands offshore companies can be managed by a single director, who can be both the sole shareholder of this company. It is very convenient for registering a sole company in order to conduct international business as a private company.
Company types you can register
The International Business Company (IBC) is by far the most popular legal form in the Marshall Islands. Basic requirements for registration of this type of company in the Marshall Islands are:
- The minimum number of directors and shareholders is one.
- A legal address and a registered agent on the islands are required.
A Limited Liability Partnership (LLP) registered in the Marshall Islands owns one substantial benefit with the ability to receive income outside its jurisdiction and distribute it among foreign partners. However, income is not taxable in the Marshall Islands. A limited partnership is the most suitable form of ownership for the creation of joint international enterprises. A Limited Liability Partnership carries out activities in much the same way as a partnership with unlimited liability.
Requirements for companies
Special features of Marshall Islands offshore companies.
| Marshall Islands International Business Company general details | |
| Type of Entity | IBC or Non-Resident Domestic Corporation |
| Type of Law | Common-Law |
| Registered Office in the Marshall Islands | Required |
| Minimum state duty (excludes taxation) | USD 450 |
| Corporate Taxation | Zero |
| Double Taxation Treaties | Yes |
| Share capital features | |
| Default currency | USD |
| Permitted currencies | Not limited |
| Minimum paid-up | USD 1 |
| Usual authorized | USD 50,000 |
| Redeemable shares | Allowed |
| Bearer shares | Allowed |
| Preferred shares | Allowed |
| No par value shares | Allowed |
| No voting rights shares | Allowed |
| Directors and shareholders | |
| Minimum number of directors | One |
| Resident | Not required |
| Public access to records | Not allowed |
| Place for meetings | Not limited |
| Corporate directorship | Allowed |
| Minimum number of shareholders | One |
| Public access to records | Not allowed |
| Corporate shareholder | Allowed |
| Place for meetings | Not limited |
| Company Personnel | |
| Secretary position | Required |
| Resident | Not required |
| Qualified staff | Not required |
| Accounting | |
| Accounts prepare | Required |
| Audit | Not required |
| File accounts | Not required |
| Public access to accounts | Not allowed |
| Other | |
| Minimum Annual Tax | 400 |
| Annual Return Filing Fee | No |
| File annual return | Not required |
| Migration of domicile | Allowed |
Required documents
List of documents required for Marshall Islands company register:
- Certified by a notary copy of the passports of the founders of the company.
- A document proving the place of residence (for example, a certified and translated into English copy of the passport with a place of residence or a utility bill).
- In the case when the managers of the company are represented by legal entities, it is necessary to submit registration documents to them.
- Since November 2018, any company must confirm the relevance of its personnel potential and its addresses. The procedure is carried out every year.
If false or incomplete information is provided, the company faces a fine of USD 50,000 or even liquidation as a measure of the last resort.
Benefits to open company in Marshall Islands
Companies registered in the Marshall Islands are fully exempt from taxation, are not required to maintain accounting records and submit annual reports. High confidentiality stands for the closed register of shareholders and directors. Marshall Islands company incorporation also means that information about the true owners of the enterprise can be disclosed only by court order. When using nominee directors and shareholders, the identity of the real owner of the company cannot be established in principle.
However, it is necessary to distinguish between the active and passive operations of the company. All that will consist of operations received from the profile and direct activities of the company will be considered active operations. Income received from royalties, leases or in the form of dividends from other companies will be considered passive and, accordingly, can be transferred to the automatic exchange of financial data of CRS.
Quick and easy offshore company formation in Marshall Islands
The legislation of the Marshall Islands is convenient for the companies that own ships and yachts, or businesses that conduct various trading activities, including the Internet-related ones. While adding such a company to the Marshall Islands business directory, it is possible to make it serial, that is, Series Limited Liability Company (SLLC). Such an opportunity is rare in the financial industry. At its core, SLLC is an LLC with divisions that are in no way dependent on each other. Each such unit can be engaged in an individual direction, have a separate bank account (even in different banks) and human resources. It is easy to imagine what opportunities are opening up for such a flexible form of the legal entity.
