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. The high quality of its corporate services is due to the efficiency of the International Registries, the Registrar of Companies in the Marshall Islands.
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.
|United States Dollar (US$)
|Capital gains tax
The Marshall Islands’ laws are based on common law.
The court of final appeal is the Supreme Court of the Marshall Islands.
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 following laws provide for the existence of offshore companies in the Marshall Islands:
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 registry of companies and relatively remote location have made this jurisdiction very popular over the past decade.
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.
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. Please contact Astra Trust to obtain the current list of companies in the Marshall Islands.
The following types of entities are available for incorporation in the Marshall Islands:
Astra Trust can incorporate any of these entities in the Marshall Islands.
Companies incorporated in the Marshall Islands are a good choice, inter alia, for the following types of activities:
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 up to seven days.
The following CDD documents are required for Marshall Islands company registration:
The costs of incorporation include services for the following:
After offshore company formation you receive the following incorporation documents:
Under the Associations Law of the Marshall Islands, the company’s name shall end with the following words:
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.
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.
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 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 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 the special licensed custodian.
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 and 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.
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 relevant activities are defined by the law as the following types of activities:
All companies not engaged in any of the abovementioned 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.
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.
Business Activity Restrictions
Requirements to Directors
Requirements to Secretary
Requirements to Shareholders