News: Registration of Company on Marshall Islands

How to register company in the Marshall Islands

The Republic of the Marshall Islands is located in the Pacific Ocean, namely, in Micronesia. The area of the republic is nearly 181 km2. The entire territory lies to the north of the equator and is divided into two groups. In total, 29 atolls and 5 islands are included in the state formation. The capital of the islands is Majuro. Self-government on the islands is associated with the United States of America.

The nearest archipelagos to the Marshall Islands are the Caroline Islands and the Gilbert Islands.

The Republic is member of the UN, the Asian Development Bank, several Pacific communities and international organizations.

The official languages of the Marshall Islands are English and Marshallese (from the group of Micronesian languages).

The population is approximately 50 thousand people.

The climatic conditions of the islands vary from north to south, with  proportional increase in the amount of precipitation.

Business in the Marshall Islands

In recent years, the Republic of the Marshall Islands has managed to achieve economic stability. And low taxes have made the state one of the most popular offshore zones.

Thus, a company in the Marshall Islands - despite the innovations in the legislation, this is a very popular and common option to optimize taxation today. The Marshall Islands are forced to adapt to new requirements, but at the same time they continue to offer tax breaks and opportunities to protect assets.

Company registration in Marshall Islands is fast, the process itself has undergone some changes, however, as before, it is quite simple. Registration fees are low, and the availability of fees for extending the business of the Marshall Islands is also affordable.

However, it is worth noting that the new requirements relating to economic sabstens oblige companies to operate on the territory of the islands. Also, the company should employ a sufficient number of adequately trained and qualified personnel who are physically located in the Marshall Islands.

Why is it cost-efficient to register or buy offshore business in the Marshall Islands:

lPossibility of obtaining advantages from operation in tax-free jurisdiction;

lThere are no requirements on reporting;

lThese is lack of foreign exchange control;

lProximity of the USA;

lThe possibility of establishing company by type of American and English ones;

lThe Republic has signed the Hague Convention.

The legislative framework

Activities and registration of offshore company in the Marshall Islands are governed by the Law “On Companies” of 1990.

Forms of doing business in the Marshall Islands

The most optimal form for investors is the International Business Company (IBC).

Offshore company in the Marshall Islands. Peculiarities

• The number of directors and shareholders shall be 1 or more persons. They can be nominal;
• It is necessary to have secretary;
• Permission is granted to issue shares without par value. Issue of bearer shares is prohibited;
• In connection with the new changes that came into force on January 1, 2019 under pressure from FATF and the EU, most offshore companies were forced to introduce new legislation, which obliges companies to ensure a real presence in the territory of these jurisdictions. Under the innovations were also the Marshall Islands. In connection with the new rules, the company’s activities must be managed on the Marshall Islands (the company's board meetings must be held regularly (there must be a quorum), and all documents must be kept on the islands;
• The charter capital of offshore company in the Marshall Islands is not specified, but shall be declared. At the same time, the terms of its payment are not stipulated;
• The company name should be unique and not similar to those already existing ones. The name can be registered in any language when translating into French or English;
• The company in the Marshall Islands can select any bank for cooperation, as well as number of accounts necessary for commercial purposes. All banking transactions are confidential, and information regarding them shall not be disclosed;
• Only information about the name of the company and the changes in the constituent documents is open to third parties. There is no information concerning the beneficial owner in the register;
• Offshore company should be registered in the Marshall Islands, and in addition, registration agent is needed
• The main activity of the company must be carried out from the Marshall Islands, however, companies that can prove tax residency in another jurisdiction do not fall under the new requirements, which came into force on 01/01/2019;
• Financial and insurance activities are subject to licensing.;

Offshore company in the Marshall Islands can not:

- have commercial relationships with residents;

- own real estate in the Marshall Islands;

- engage resident organizations in the management of the company;

- provide services of registration agent to resident companies.

In addition, financial and insurance activities are subject to licensing.

Taxes in the Marshall Islands

Offshore company in the Marshall Islands is not subject to taxation (including stamp duty, income tax and tax on transfer of shares).

Bookkeeping in the Marshall Islands

If you decided to buy company in the Marshall Islands, then You need to be aware that You do not have to submit reports regarding its activities.

Do you need to register or buy company (offshore company) in the Marshall Islands? Then, please, apply for us. And you will be convinced that registration of offshore company in the Marshall Islands is quick and simple procedure. Registration of business in the Marshall Islands, as well as companies and enterprises is one of the most important directions of our work.