Asset Protection
Advantages of Marshall Islands Company Formation
- Effective and Flexible Corporate Solutions
- Fast and Easy Company Formation Process
- No Tax Business Environment
- Strong Privacy of Marshall Islands Company
- Very Stable Political and Legislative Systems
Privacy Score
This score demonstrates how much privacy can be maintained by the company and the rate of disclosure of the corporate information for open public scrutiny. The higher the rate, the more privacy the company can enjoy. All rates are based on the open sources and subjective view of Astra Trust.
98
0
100
Tax Haven Score
This score demonstrates the tax burden applicable to the company and the jurisdiction as a whole. The higher the score, the lower are tax rates, and the easier is regulation. All scores are based on the open sources and subjective view of Astra Trust.
98
0
100
Reputation
This score demonstrates the reputation of the company and jurisdiction in the financial and business circles. The higher the score, the more favourable is the treatment by financial institutions, authorities, and counterparties. All scores are based on the open sources and subjective view of Astra Trust.
Good
Find out more about Marshall Islands
The Marshall Islands is an independent country located in the Pacific Ocean and is part of Micronesia. During their history, the islands were included in the Spanish and German empires. In the 20th century, it was occupied by Japan and the US and finally gained independence in 1979. Today, it is an associated state of the US, famous for its offshore financial services and maritime registry.
The country is a democracy and is ruled by a parliament and a president. English is the country’s official language, and the island is politically very stable. This has helped the island country position itself as the premier location for offshore and maritime registrations.
The Marshall Islands offshore financial centre is hugely popular for its offshore companies and maritime register. The high quality of its corporate services is due to the efficiency of the International Registries, the Marshall Islands Corporate Register.
The Following Types of Entities Are Available For The Marshall Islands Company Registration:
- International Business Company (IBC)
- Limited Liability Company (LLC)
- Limited Partnership (LP)
- Foreign Maritime Entity (FME)
Why Set Up a Marshall Islands Company?
The Marshall Islands offshore company is one of the best choices for those looking for a classic, stable, zero-tax jurisdiction. The flexible company laws, modern and efficient Marshall Islands corporate registry and relatively remote location have made this jurisdiction very popular over the past decade.
Marshall Islands International Registries
One of the features of the Marshall Islands is that the registrar’s offices are located in more than 20 jurisdictions around the world. This flexibility is especially useful when a company registration is urgently required.
International Maritime Register in the Marshall Islands
Marshall Islands company formation is a perfect choice for yacht and ship registrations due to the country having the second largest ship registry in the world and its high quality and efficient Registrar of Companies. Marshall Islands companies are also widely used as standard asset-holding limited liability companies with closed registers of directors and shareholders. The jurisdiction is highly compliant with global AML/CFT standards as well as beneficial ownership and substance regulations. The high level of compliance of this type of company makes it easier to open a bank account for such a company.
It is also possible to acquire a ready-made shelf company. Contact Astra Trust to obtain the current list of ready-made companies in the Marshall Islands. Astra Trust can incorporate any type of entity in the Marshall Islands.
Companies Incorporated in the Marshall Islands Can be Used for Following Types Of Activities:
Vessel Ownership
Tax Planning
IP RIghts Holding
Taxation of the Marshall Islands Company
| Currency | USD (US$) |
| Corporate Income Tax | 0% |
| Withholding Tax | 0% |
| Capital Gains Tax | 0% |
| Inheritance Tax | 0% |
| VAT | 0% |
| Exchange Controls | No |
Taxation In The Marshall Islands
The Marshall Islands adopted a no-tax model for non-resident companies that attracted many businesses and individuals to set up their offshore companies there.
A classic tax haven
The Marshall Islands is a classic offshore tax haven where no tax is levied on offshore profits, including passive income. IBC companies incorporated by the Marshall Islands Company Registry are deemed to be non-resident companies.
Companies that do not derive income in the Marshall Islands are not required to file annual tax returns or audited financial statements.
There is no corporate profit tax, capital gains tax, withholding tax on royalties, interest and dividends or stamp duty for Marshall Islands companies that do not profit from business in the Marshall Islands.
The official currency of the Marshall Islands is the United States dollar (USD).
There are also no currency exchange controls in the Marshall Islands.
Corporate Legislation in the Marshall Islands
The Marshall Islands’ laws are based on common law.
Marshall Islands company law is largely based on the US model, in particular, Delaware corporate legislation. It should be noted, however, that the US model has been modified to make it even more flexible and adaptable to classic IBC offshore companies.
It is notable that the Marshall Islands Maritime Registry is the second-largest registry in the world. That is why a Marshall Islands company can be very useful for registering a vessel in the Marshall Islands. Moreover, the special registration regime allows foreign corporations to be registered as Foreign Maritime Entities (FMEs) to hold the vessel under the Marshall Islands flag.
The court of final appeal is the Supreme Court of the Marshall Islands.
The Following Laws Regulate Formation of Offshore Companies in the Marshall Islands:
Process Of Marshall Islands Company Registration
Stage 1
Contact us for more information and quotes. We answer within three hours!
Stage 2
Fill in a form, provide us with the required documents and make a payment.
Stage 3
Receive the scanned incorporation documents within two days, and hard copies by courier in up to seven days.
Required Documents To Incorporate In Marshall Islands
To incorporate a Marshall Islands company the following KYC documents are required:
- Certified copy of proof of ID for all directors, shareholders and beneficial owners
- Certified proof of address for all directors, shareholders and beneficial owners
- CV or Reference Letter for the beneficial owners
- KYC form provided by your personal manager in Astra Trust
For more information click below to receive certification instructions and requirements.
Documents And Services You Receive After Marshall Islands Company Registration
The Costs of Marshall Islands Company Incorporation Include Services as Follows:
- Company name search in the Marshall Islands Register of Companies for availability
- Revision of KYC and CDD documents
- Payment of Government Fees
- Necessary filings to the Marshall Islands Registrar of Companies
- Drafting of activation corporate documents on incorporation of the company
- Marshall Islands Registered office services for 1 year
- Marshall Islands Registered agent services for 1 year
- Compliance Fees
- Full administrative support 24/7 from your personal manager in Astra Trust for any additional services
The Company Incorporation in the Marshall Islands Package Includes the Following Company Documents:
- Certificate of Incorporation issued by the Marshall Islands Registrar of Companies
- Memorandum of Association stamped by the Marshall Islands Registrar of Companies
- Articles of Association stamped by the Marshall Islands Registrar of Companies
- Instrument of Appointment of Proxy
- Resolution of appointment of first directors
- Register of directors
- Register of shareholder
- Minutes of first meeting of directors
- Share Certificate for each shareholder
Need More Help To Register Your Offshore Company in the Marshall Islands?
Just get in touch with us to receive a prompt response to any questions you may have.
Company Name In The Marshall Islands
Under the Associations Law of the Marshall Islands, the company’s name shall end with the following words:
- “Limited”;
- “Corporation”;
- “Incorporated”.
Alternatively, the abbreviations “Ltd.”, “Corp.” or “Inc.” may be used.
The law also allows, instead of the abovementioned required words, any words, abbreviations, suffixes or prefixes that will clearly indicate that it is a corporation, as distinguished from a natural person or a partnership.
Board Of Directors And Shareholders Of a Marshall Islands Company
A Marshall Islands IBC must at all times have at least one director and one shareholder as stipulated by the Associations Law.
There are no restrictions on board meetings being held anywhere in the world. The appointment of a company secretary is optional.
There is also no restriction on the residency or nationality of the directors and shareholders. Corporate directors and shareholders are allowed.
Nominee services are allowed to be used for an IBC company of the Marshall Islands. Astra Trust can provide nominee services and assist with all corporate matters to ensure your company complies with all legal requirements of Marshall Islands law.
Share Capital of a Marshall Islands Company and Types of Companies
The share capital of a Marshall Islands offshore company can be of any value and currency as stipulated in the company’s Memorandum of Association.
The companies that can be incorporated in the Marshall Islands, depending on the share capital, can be structured as follows:
- Company limited by shares
- Company limited by guarantee
- Company limited by shares and guarantee
The standard authorised share capital of the company limited by shares is usually USD 50,000, with a denomination of USD 1 per share. The shares may be of no par value if required.
The issued share capital to shareholders can be of any amount, starting from 1 share and up to all 50,000 shares.
Issuance of both registered and bearer shares is allowed in the Marshall Islands. Bearer shares must be held with a special licensed custodian.
Privacy of a Marshall Islands Offshore Company
The Marshall Islands is considered a highly confidential jurisdiction.
A Marshall Islands company’s information on registers of directors, shareholders and beneficial owners is not available to the public.
Corporate registers are kept at the company’s registered office. Only the statutory records are maintained by the International Registries of the Marshall Islands.
Information about the company may only be disclosed to the authorities of other countries and only upon official legal request from such authorities. Information about directors and shareholders is not disclosed in company searches.
The privacy of an IBC company can be further enhanced by the appointment of nominee services, which are available in this jurisdiction.
Economic Substance Requirements In the Marshall Islands
Companies in the Marshall Islands are subject to economic substance requirements.
Under the Economic Substance Regulations of 2018, Marshall Islands IBCs carrying on one or more relevant activities must have economic substance in the Republic in relation to that relevant activity in each financial period in which income was derived from such activity. The company needs to submit the Economic Substance report in order to remain in good standing.
The relevant activities are defined by the law as the following types of activities:
- Distribution and service centre business;
- Financing and leasing business;
- Fund management business;
- Headquarters business;
- Holding company business;
- Intellectual property business;
- Shipping business;
- Banking business; and
- Insurance business.
All companies not engaged in any of the above-mentioned activities are not relevant entities and do not fall under the scope of the economic substance requirements.
For Pure Equity Holding Companies (PEHCs) that only hold equity participations and only earn dividends and capital gains, only the minimum requirements apply, and generally, there will be no need to demonstrate sophisticated economic substance in the Marshall Islands.
Reporting Requirements in the Marshall Islands
There are no reporting requirements for offshore IBCs that do not carry out activities in the territory of the Marshall Islands.
If you are looking for a trust company in the Marshall Islands, please do not hesitate to contact Astra Trust for a free consultation.
Key Features of Marshall Islands Company
General Information
- Jurisdiction – Independent nation
- Entity type – IBC
- Corporate Tax – 0%
- VAT – 0%
- Currency – USD
- Currency Exchange Control – No
- Legal framework – Common Law
- Recognition of Trust – Recognised
- Court of final appeal – the Supreme Court of Marshall Islands
Business Activity Restrictions
- Business Activity Restrictions – No. Subject to standard licensed types of activities.
- Economic Substance Requirements – Applicable
Requirements to Directors
- Register of Directors – Publicly not accessible. Stored in Registrar.
- Minimum Number of Directors – 1
- Corporate Director – Available
- Local director – Not required
- Nominee Director – Available
Requirements to Secretary
- Secretary – Not required. Optional.
- Local Secretary – Not required.
Requirements to Shareholders
- Register of Shareholders – Publicly not accessible. Stored in Registrar.
- Minimum Number of Shareholders – 1
- Corporate Shareholder – Available
- Annual General Meeting – Not required
- Location of Meetings – Anywhere in the World
- Nominee Shareholder – Available
Share capital
- Minimum Authorized Share Capital – USD 1
- Standard Authorized Share Capital – USD 50,000
- Minimum Issued Share Capital – USD 1
- Currency of Share Capital – USD or any other
Reporting Requirements
- Preparation of Accounts – Not required
- Filing of Annual Return – Not required
- Publicity of Annual Return – Not public
- Audited Accounts – Not required
Other features
- Redomiciliation to/from Jurisdiction – Permitted
- Shelf companies – Available
Frequently Asked Questions
What to consider before proceeding with Marshall Islands company registration?
It is important to consider factors such as your business model, jurisdictional advantages, compliance requirements, and whether the Marshall Islands aligns with your overall business strategy.
What types of companies can be formed in the Marshall Islands?
In the Marshall Islands, you can form various types of companies, including International Business Companies (IBCs), limited liability companies (LLCs), and partnerships, depending on your business needs.
What is the process for Marshall Islands company formation?
The process for Marshall Islands company formation involves selecting a company name, appointing a registered agent, preparing and filing the necessary documentation, and obtaining a certificate of incorporation from the Registrar of Corporations.
What are the tax implications of forming a company in the Marshall Islands?
The Marshall Islands offers a zero per cent corporate tax rate for most businesses, making it an attractive option for international operations. However, it is advisable to consult a tax professional regarding specific circumstances.
What are the benefits of Marshall Islands company registration?
Benefits include tax advantages, privacy protection, minimal reporting requirements, and the ability to conduct international business with ease.
Is it necessary to have a registered agent for my company in the Marshall Islands?
Yes, it is mandatory to appoint a registered agent who is licensed and based in the Marshall Islands. The registered agent will handle official correspondence and legal documents.
Is confidentiality guaranteed with Marshall Islands company formation?
Yes, the Marshall Islands provides a high level of confidentiality. The names of shareholders and directors are not publicly disclosed, ensuring privacy for company owners.
How to ensure compliance after Marshall Islands company registation?
To ensure compliance, stay informed about local laws, maintain accurate records, file necessary reports on time, and engage with professional services if needed for ongoing legal and financial obligations.
How long does the Marshall Islands company registration process take?
The process typically takes between 2 to 5 business days, provided all necessary documents are submitted correctly and promptly.
Do I need to be a resident of the Marshall Islands to form a company?
No, you do not need to be a resident of the Marshall Islands to form a company. Non-residents can fully own and manage companies established in the jurisdiction.
Can I use my Marshall Islands company for international trading?
Yes, Marshall Islands companies are commonly used for international trading and can engage in various business activities globally, subject to local laws and regulations.
Can I open a bank account for my company registered in the Marshall Islands?
Yes, once your company is formed, you can open a corporate bank account in the Marshall Islands or in other jurisdictions, depending on your banking preferences.
Are there any minimum capital requirements for forming a company in the Marshall Islands?
There are no minimum capital requirements for Marshall Islands company formation. Shareholders can determine the amount of capital they wish to contribute.
Are there annual maintenance requirements for companies in the Marshall Islands?
Yes, companies must comply with annual maintenance requirements, which typically include filing an annual return and paying an annual fee to maintain good standing.
