Company Registration in the Marshall Islands
The Marshall Islands are a small island nation in Micronesia. These distant islands are little known among ordinary people, but they have gained excellent popularity for business. The Marshall Islands is one of the world’s largest offshore jurisdictions and is considered quite reputable. More than 40 companies from the Marshall Islands successfully passed the registration procedure on stock exchanges and placed their shares there.
Lawtter Solutions offers clients services for registering legal entities in the Marshall Islands. Our specialists have extensive experience in this jurisdiction. We provide fast company incorporations on favorable terms.
1 390 EUR*
24 hours
0%
Without a personal visit
Advantages
Advantages of a Company in the Marshall Islands
Opening a company in the Marshall Islands can be a good decision. This jurisdiction offers numerous advantages, including:
Association with the United States
Political stability
Developed legislation for offshore companies
No reporting requirements
No exchange controls
Closed register of beneficiaries
American and English types of company
The Marshall Islands is a party to The Hague Convention
Before registering a business in the Marshall Islands, it is necessary to decide on the form of ownership. The main options for registering a legal entity in the islands are as follows.
International Business Company (IBC)
This form of ownership was explicitly created for non-residents of the Marshall Islands. In their structure, such companies are similar to classic LLCs. They are not entitled to conduct business on the islands.
Limited Liability Company
A classic form of ownership in which the company’s liability is limited to the authorized capital. Legal entities in this form of ownership can be both offshore and conduct business on the territory of the Marshall Islands.
General Partnership
A general partnership is an organization where all partners have unlimited liability for the company’s obligations. Accordingly, they are liable for their assets and property. Such partnerships may conduct business in the Marshall Islands and pay taxes in the jurisdiction.
Limited Partnership
In this type of partnership, the partners have limited liability, limited to each partner’s share. This type of organization can conduct business in the Marshall Islands.
Director
Companies in the Marshall Islands must have at least one director. There are no residency requirements; a director can be a citizen of any country except for countries and individuals on sanctions lists. A person 18 or older may be appointed as a director. In the Marshall Islands, there is an option to use nominee service. A company secretary must also be appointed.
Shareholder
Companies in the Marshall Islands must have at least one shareholder. There are no residency requirements. A shareholder can be an individual or legal entity from any country except for countries and persons on sanctions lists. The minimum age of the shareholder is 18. The Nominee service can also be used.
Address
The company must have a registered office in the Marshall Islands.
Name
The name must be unique. There must be an ending that indicates the company’s form of ownership. If the company is incorporated as an International Business Company, the name should end with Ltd., Corp., or Inc., and Limited Liability Company should end with LLC.
Share Capital
The legislation in the Marshall Islands does not establish a minimum authorized capital for the company. The authorized capital is 500 shares or 50,000 USD. If authorized capital exceeds 50,000 USD, the capital tax must be paid.
Local Account
Companies registered in the Marshall Islands are not required to open a bank account in a local bank. They can work with banks from any country in the world.
Registration Agent
Under Marshall Islands law, a company must have a local registration agent. The company registration is done through the agent.
Reporting
Companies are not required to file accounts. However, they are required to keep financial and accounting records.
A non-resident firm in the Marshall Islands is completely tax-exempt. Companies are not liable to pay income taxes, stamp duty, or share transfer tax. Instead, they pay fixed annual fees.
Income Tax
There is no income tax in the Marshall Islands for both non-residents and residents.
Value Added Tax
Value-added Tax is paid in the Marshall Islands at 2-4%, depending on the types of goods.
Dividend Tax
Residents pay tax on interest, dividends, and royalties in the Marshall Islands. The tax rate is 10%.
Real Estate Tax
If a company owns real estate in the Marshall Islands, it must pay tax at 3%. It applies to both residents and non-residents.
There are no mandatory reporting requirements in the Marshall Islands. However, reporting can be voluntary to maintain a good reputation.
Record Keeping
International business companies must keep books and records and retain financial statements, accounting records, and primary documents reflecting the company’s current status. However, their financial statements are not subject to mandatory audit.
Before registering a business in the Marshall Islands, it is necessary to decide on the form of ownership. The main options for registering a legal entity in the islands are as follows.
International Business Company (IBC)
This form of ownership was explicitly created for non-residents of the Marshall Islands. In their structure, such companies are similar to classic LLCs. They are not entitled to conduct business on the islands.
Limited Liability Company
A classic form of ownership in which the company’s liability is limited to the authorized capital. Legal entities in this form of ownership can be both offshore and conduct business on the territory of the Marshall Islands.
General Partnership
A general partnership is an organization where all partners have unlimited liability for the company’s obligations. Accordingly, they are liable for their assets and property. Such partnerships may conduct business in the Marshall Islands and pay taxes in the jurisdiction.
Limited Partnership
In this type of partnership, the partners have limited liability, limited to each partner’s share. This type of organization can conduct business in the Marshall Islands.
Director
Companies in the Marshall Islands must have at least one director. There are no residency requirements; a director can be a citizen of any country except for countries and individuals on sanctions lists. A person 18 or older may be appointed as a director. In the Marshall Islands, there is an option to use nominee service. A company secretary must also be appointed.
Shareholder
Companies in the Marshall Islands must have at least one shareholder. There are no residency requirements. A shareholder can be an individual or legal entity from any country except for countries and persons on sanctions lists. The minimum age of the shareholder is 18. The Nominee service can also be used.
Address
The company must have a registered office in the Marshall Islands.
Name
The name must be unique. There must be an ending that indicates the company’s form of ownership. If the company is incorporated as an International Business Company, the name should end with Ltd., Corp., or Inc., and Limited Liability Company should end with LLC.
Share Capital
The legislation in the Marshall Islands does not establish a minimum authorized capital for the company. The authorized capital is 500 shares or 50,000 USD. If authorized capital exceeds 50,000 USD, the capital tax must be paid.
Local Account
Companies registered in the Marshall Islands are not required to open a bank account in a local bank. They can work with banks from any country in the world.
Registration Agent
Under Marshall Islands law, a company must have a local registration agent. The company registration is done through the agent.
Reporting
Companies are not required to file accounts. However, they are required to keep financial and accounting records.
A non-resident firm in the Marshall Islands is completely tax-exempt. Companies are not liable to pay income taxes, stamp duty, or share transfer tax. Instead, they pay fixed annual fees.
Income Tax
There is no income tax in the Marshall Islands for both non-residents and residents.
Value Added Tax
Value-added Tax is paid in the Marshall Islands at 2-4%, depending on the types of goods.
Dividend Tax
Residents pay tax on interest, dividends, and royalties in the Marshall Islands. The tax rate is 10%.
Real Estate Tax
If a company owns real estate in the Marshall Islands, it must pay tax at 3%. It applies to both residents and non-residents.
There are no mandatory reporting requirements in the Marshall Islands. However, reporting can be voluntary to maintain a good reputation.
Record Keeping
International business companies must keep books and records and retain financial statements, accounting records, and primary documents reflecting the company’s current status. However, their financial statements are not subject to mandatory audit.
Registration company
Company Registration Process
The process of registering a company in the Marshall Islands involves 5 steps. You can learn of them in the list below:
Due Diligence and KYC Verification
Name Verification
Documents Preparation
Filing of Documents
Preparation of Internal Company Documents
Documents
Documents Required for Registration
A registration agent registers a company in the Marshall Islands. The following documents must be submitted:
- Memorandum of Association;
- Articles of Association of the company;
- Information on beneficiaries – personal data, proof of residence address;
- Documents confirming the appointment of a director – minutes of the shareholders’ meeting, resolution;
- Information on the director and secretary – personal data, proof of residence address;
- Register of directors and secretaries;
- Resolution on the issue of shares;
- Documents for appointment of a nominee shareholder or nominee director.