Scroll

Marshall Islands

Introduction

The Marshall Islands, officially the Republic of the Marshall Islands is an island country located near the equator in the Pacific Ocean, slightly west of the International Date Line. Geographically, the country is part of the larger island group of Micronesia.

Population

In the 2011 Census, the number of island residents was 53,158. Over two-thirds of the population live in the capital, Majuro and Ebeye, the secondary urban center, located in Kwajalein Atoll. This excludes many who have relocated elsewhere, primarily to the United States.

Language

The two official languages are Marshallese, which is a member of the Malayo-Polynesian languages, and English.

Political Structure

Politics of the Marshall Islands takes place in a framework of a parliamentary representative democratic republic, and of an emerging multi-party system, whereby the President of the Marshall Islands is both head of state and head of government. Executive power is exercised by the government. Legislative power is vested in both the government and the Nitijela (Legislature). The Judiciary is independent of the executive and the legislature.

Economy

US assistance and lease payments for the use of Kwajalein Atoll as a US military base are the mainstay of this small island country. Agricultural production, primarily subsistence, is concentrated on small farms; the most important commercial crops are coconuts and breadfruit. Industry is limited to handicrafts, tuna processing, and copra. Tourism holds some potential. The islands and atolls have few natural resources, and imports exceed exports.

Currency

United States dollar (USD)

Exchange Control

There are no official remittance policies and no restrictions on foreign exchange transactions.

Financial services industry

There are two banks in the country, the Bank of the Marshall Islands and a branch office of the Bank of Guam. There are no brokerage houses or other types of financial firms in the country. Land is almost never sold due to customary land tenure practices. There are no realtors, nor are there casinos or other entities typically used to launder money.

The Government of the Marshall Islands has filed two money laundering cases. Both were dismissed by the RMI High Court. There is a need for greater institutional capacity to successfully prosecute money laundering cases. The RMI should tighten enforcement of tipping- off provisions, ensure designated non-financial businesses and professions are fully reporting, and ensure beneficial ownership is properly established.

Corporate Law/Act

A limited liability company (LLC) combines the best traits of an International Business Corporation (IBC) and a partnership. Like shareholders in a corporation, the members are protected from personal liability in excess of their capital investment. Like the partners in a partnership, members can flexibly allocate gains and losses.

LLCs are registered and governed pursuant to the Republic of the Marshall Islands (RMI) Limited Liability Company Act.

Type of Company/Corporation: One IBC Limited provide Incorporation service in Marshall Islands with the type A Limited Liability Company (LLC) and International Business Corporation (IBC).

Business Restriction: IBC and LLC cannot trade or conduct commercial activities inside the Marshall Islands. IBC’s are also prohibited from engaging in assurance, banking, collective investments schemes, funds management, insurance, reinsurance, trusteeship services, and trust management.

Company Name Restriction: Marshall Islands IBC’s and LLC’s  cannot take the same name of other legal entities or be too similar. The company name may be in any language using Roman characters.

Name reservations may be made with the government for up to six months at no cost. Two names may be reserved in case the first name is not approved.While not required, it is recommended that an IBC name include one of the following words or its abbreviation: “Company”, “Corporation”, or “Incorporated” and a LLC name include one of the following words or its abbreviation: “Limited Company” or “Limited Corporation”.

Incorporation Procedure

Just 4 simple steps are given to incorporate a Company in Marshall Islands:

  • Step 1: Select basic Resident/Founder nationality information and other additional services which you want (if any).

  • Step 2: Register or login and fill in the company names and director/ shareholder(s) and fill in billing address and special request (if any).

  • Step 3: Choose your payment method (We accept payment by Credit/Debit Card, PayPal or Wire Transfer).

  • Step 4: You will receive soft copies of necessary documents including: Certificate of Incorporation, Business Registration, Memorandum and Articles of Association, etc. Then, your new company in Marshall Islands is ready to do business. You can bring the documents in company kit to open corporate bank account or we can help you with our long experience of Banking support service.

These documents required to incorporate company in Marshall Islands:

  • Passport of each shareholder/beneficial owner and director;

  • Proof of residential address of each director and shareholder (Must be in English or certified translation version);

  • The proposed company names;

  • The issued share capital and par value of shares.

Compliance

Capital

No minimum authorized share capital is required. However, if the authorized share capital exceeds $50,000 USD, a one-time capitalization tax will be imposed. The minimum paid up share capital is $1 USD.

Share

IBC: The IBC may issue bearer or registered shares with par or no par value. Par value shares can be in any currency. Normally, 500 bearer shares or registered are issued without par value. Or, par value shares worth up to $50,000 USD.

LLC: A LLC does not have to issue shares.

Director

The Board of Directors manage the IBC. Only one director is required who can be a citizen of and reside in any country and can be a legal entity (such as a corporation, LLC, trust, etc.) or a natural person. Nominee directors are permitted.

The only required officer is a company secretary is required who can be a resident of any country and either a legal entity or a natural person. The registered agent’s office can provide the company secretary.

Shareholder

IBC: Only one shareholder is required to form an IBC. Shareholders can be from any country and can be natural persons or legal entities. Nominee shareholders are allowed.

LLC: LLC members can choose not to participate in the running of the day to day business affairs. Like shareholders, they can appoint one or more managers to run the LLC. On the other hand, members can choose to actively participate in the daily management without liability exposure.

Beneficial Owner

Shareholders, directors, and officers names are not part of any public records. Nominee shareholders and directors can be appointed.

Taxation

IBC and LLC do not pay any taxes if they do not carry on business in the Marshall Islands. Note that U.S. taxpayers and everyone obliged to pay income taxes on global income must declare all income to their tax agency.

Financial statement: The Marshall Islands do not require audited financial accounts. There are no filing of any annual returns. There are no required accounting standards or good practices.

Local Agent

A local registered agent must be appointed whose office address may be the registered office for the IBC and LLC.

Double Taxation Agreements: The Marshall Islands have signed a total of 14 TIEAs such as Australia, Denmark, the Netherlands, Norway and the United States, the Faroe Islands, Finland, Greenland, Iceland, Ireland, Korea (Rep. of), New Zealand, Sweden and the UK.

License

Business License

Marshall Islands is a major center for offshore business activities, specifically in the maritime industry, but is also useful for other business activities as there are few restrictions on what types of activities businesses can engage in. Companies have the possibility of conducting limited third party trading of securities, act as a fund advisor and/or manager, as well as any other legal business activity except online gaming, banking, trust and insurance.

Payment, Company Return Due Date

There are no requirements to file annual returns in this jurisdiction. Non-resident offshore companies registered in the Marshall Islands not engaging in business activity in the Marshall Islands, are exempt from corporate taxation and as such there are no requirements for a company to file a tax return.

 

About us

We are proud your partner and operate in Leading Company Formation, Financial and Corporate Services Provider where clients need to achieve their objective international market. Our Solution. Your Success.