- Located in the northern pacific ocean, the Republic of the Marshall Islands (RMI) is an island nation. The state offers the flexibility and privacy needed by company owners making it a contemporary and reliable corporate jurisdiction. Corporate executives are allowed, and there are no required or yearly filing requirements in this zero-tax country.
- In the Marshall Islands, the entities are regulated under the Business Corporation Act (BCA) wherein Delaware’s company law in the US served as the major inspiration for the aforementioned legislation. Because of its favorable corporate legislation, political stability, flexible and straightforward formation policy, extensive experience managing corporate programs, and high level of economic development, the Republic of the Marshall Islands has become an offshore center for maritime and corporate registration.
- Deciding on which countries to expand your business to can always be a complex and difficult decision. As an aspiring entrepreneur, you might be attracted to the business environment of the Marshall Islands and might be wondering about the process of setting up a company in the nation as a foreigner. In this article, Tetra Consultants has provided a complete guide to the Marshall Islands company formation for a foreigner so that you may better understand this business phenomenon and make a more informed decision about whether you should proceed with Marshall Islands company registration.
Benefits of starting a business in the Marshall Islands
An applicant planning to register company in Marshall Islands can be benefitted in the following ways:
- The Marshall Islands IBC shall not be required to report or pay any taxes.
- Information about directors and stockholders need not be disclosed.
- The company may issue bearer shares.
- Submission of yearly returns, accounts, or financial statements is optional.
- No exchange regulations, simple capital pooling
- Political, economic, and commercial conditions are steady and stable.
Types of company structures in the Marshall Islands
Under the provisions of Marshall Islands company law, an applicant planning to set up a company in the nation has the option of forming the organizational structure in the following manner:
- International business company;
- General partnership;
- Limited partnership;
- Limited liability company;
- Foreign maritime company.
Requirements for forming a Marshall Islands IBC
- One of the most popular offshore organization forms in the Marshall Islands is an International Business Company (IBC), commonly referred to as a Non-Resident Domestic Corporation (NRDC).
- The Marshall Islands, which provide sustainable corporate programs and user-friendly IBC regulations, is a very well-known and prosperous offshore financial hub that has drawn thousands of entrepreneurs from all over the world.
- An IBC is allowed to engage in any lawful business activity in the Marshall Islands under the terms of the Marshall Islands Business Corporation Act, with the exception of a few limitations on the provision of insurance policies or the assumption of insurance risks, the provision of trust services, or the conduct of banking. Tetra Consultants’ team of business setup consultants are experienced with the process of registering a Marshall Islands IBC as well as to accurately guide you through the requirements of forming the same. In the subsequent section, you may read about the requirements of forming an IBC.
- A Marshallese IBC should have at least one director. The director can be an individual or business entity, resident or non-resident. Meetings of the board, regular or special, may be held at any place within or outside of the Marshall Islands unless otherwise provided by the articles of incorporation or the bylaws.
- Every Marshallese IBC is required to appoint a company secretary. The secretary of the corporation may be a natural person, a corporation, or another business entity. The secretary may be of any nationality and need not be a resident of the Marshall Islands.
- IBC must have at least one shareholder. A shareholder can be a natural person or a business entity, resident or non-resident. Meetings of shareholders may be held at such place, either within or outside of Marshall Islands as may be designated in the bylaws. An annual meeting of shareholders shall be held for the election of directors on a date and at a time designated by or in the manner provided in the by-laws. Any other proper business may be transacted at the annual meeting.
- There are no specific minimum capital requirements for Marshallese IBCs. The recommended standard authorized share capital is 500 shares without par value or a capital with a stated par value of up to US$50,000. The capital exceeding this amount is subject to capitalization tax. The authorized share capital may be expressed in any currency. The minimum issued share capital is either one share of no par value or one share of par value.
Local registered office and registered agent
- In order to complete the registration of the Marshall Islands IBC with the Registrar of Companies, every IBC is required to have a registered office and a registered agent in the Marshall Islands. IBC which fails to maintain a registered agent as required by the business corporation act shall be dissolved or its authority to do business or registration shall be revoked.
Steps to register a Marshall Island IBC
- Step 1: Choose the company structure
- Step 2: Reservation of company name
- Step 3: Preparation of corporate documents including Memorandum and Articles of Association
- Step 4: Submission of documents for Marshall Islands company registration
- Step 5: Corporate bank account opening
- Step 6: Straying compliant
- Navigating the country of Marshall Islands’ complex business climate as an entrepreneur planning to register a company in the nation might be a challenging process – a hassle to say the least. As such, Tetra Consultants hopes that this article has provided you with a much better understanding of the business culture of Bahrain s so that you can truly decide whether you should do so yourself. So, what are you waiting for?
- Contact us to find out more about the process of setting up a company in the Marshall Islands, and our dedicated and experienced team will respond within the next 24 hours.
- Tetra Consultants will not only empower you by helping to navigate the different regulations of the Marshall Islands but also aid in facilitating the registration of your company there while providing invaluable, nuanced insights into any potential challenges.