Registering or buying a company in the Republic of the Marshall Islands in 2021 will let you solve several important business tasks. The country is located in the Pacific Ocean near the Equator.
Advantages of having a Company in the Marshall Islands
Setting up an LLC or an IBC in the country is beneficial for the following main reasons:
- High speed of company registration. The company can be set up within one to two days only. The corporate documents will be delivered to you a few days later.
- Low cost of company maintenance. The company registration fee is US$ 650 in the Marshall Islands and the annual registration extension fee is US$ 450.
- Simplicity of company registration. One person can be the company founder. The minimum required registered capital is US$ 1.
- Simplicity of company management. The company founder can act as its Director and Secretary simultaneously.
- Minimal requirements to beneficial company owners. The company can be registered in the name of a private individual or a corporate entity regardless of the country of their legal residence.
- Minimal requirements to the Shareholders’ Meetings format. The Shareholder Meetings can be held remotely through the use of various messengers and online applications.
- Re-domiciliation opportunities. A company can be re-domiciled to the Marshall Islands from any other country of the world.
- No reporting nor audit requirements. The company owners can keep the records in any way they like, as no financial or accounting reports need to be submitted in the country.
Reasons why you may want to have a company in the Marshall Islands
Registering or buying a company in the Marshall Islands will help you meet the following business objectives:
- Protect your assets from an illegal seizure. The Marshall Islands has established rule of law and a reputable court system, with Marshall Islands qualified lawyers available in many cities around the world.
- High level of company owner’s confidentiality. Information on Beneficial Ownership of companies is protected by law.
- Zero taxes. Global income that the Marshall Island-registered company makes is not taxable in the country.
- Low costs of launching an IPO
- Whitelisted Jurisdiction: the Marshall Islands is on the EU whitelist as well as that of France, amongst other jurisdictions..
Our clients register or purchase companies in the Marshall Islands for the following main purposes:
- To make investments into real estate abroad;
- To put securities and non-material assets in safekeeping;
- To diversify their assets geographically;
- To set up a joint venture;
- To conduct international trade;
- To register marine vessels.
Disadvantages of a Marshall Island-registered company
An LLC or an IBC registered in the Marshall Islands will have some drawbacks that you have to take into account when considering the issue. These include the following ones:
- Although MarshallIslands is on the EU whitelist, it is listed as a tax haven in some countries.
- The country ranks 153rd in the Doing Business 2020 report.
- You cannot register a financial service, crypto nor an insurance company there.
- Banking opportunities are limited in the Marshall Islands. As a rule, local companies open bank accounts in the USA, Europe or the Caribbean.
- Two reports have to be filed annually: the economic substance report and the company UBOs list.
- The economy of the country is highly dependent on the USA.
Notwithstanding these drawbacks, the Marshall Islands is a wonderful jurisdiction where you can set up a foreign company. The maintenance costs are low and the company ownership information remains confidential. The international financial regulators are quite happy with the Marshall Islands as the country meets all the fiscal information exchange obligations.
Please note that our clients often register companies in the Marshall Islands to make them General Partners in various Limited Partnerships.
Should you register a new company in the Marshall Islands or buy an existing one?
Registering a new company in the Marshall Islands is reasonable if you have enough time to prepare the registration documents and you need a company without a history of operations.
Purchasing a readymade company in the country is reasonable if you need a company that has a history, which can add credibility. For instance, some banks will be reluctant to open a corporate account for a newly registered company.
Whichever option you choose, Offshore Pro Group experts will be happy to assist you in setting up a business company in the Marshall Islands in 2021. Please contact us right now and soon you will have an efficient business instrument that will let you achieve ambitious goals.
How do I choose the name for my company in the Marshall Islands?
You have to bear in mind the fact that the company name in the country cannot contain certain words such as ‘bank’, ‘insurance’, ‘fund’, ‘trust’, ‘charity’, and so on. Besides, the name should reflect the company ownership form and end in LLC, IBC, Corp, Ltd, etc.
Can I register a company in the Marshall Islands remotely?
Yes, you can. All the application documents can be submitted by email.
What types of business activities are prohibited in the Marshall Islands?
You are not allowed to engage in banking, trust, or insurance business and neither can you register a gambling company in the country.