Setting up a Holding Company in Marshall Islands

Marshall Islands Holding
Advantages and Tax Benefits

One of the primary motivations behind opting for offshore company registration in the Marshall Islands is the advantageous tax planning opportunities it offers.

In the Marshall Islands, foreign profits are not subject to corporate taxes, providing a tax-free environment for income earned abroad. By structuring your company appropriately and managing assets prudently, you can legally minimize tax liabilities. This benefit extends to various business entities, including LLCs, IBCs, general partnerships, and limited partnerships.

Tax Advantages

Registering a holding company in the Cayman Islands can offer several tax advantages, especially for multinational businesses and investment structures. However, it’s important to consult a legal or tax advisor familiar with your specific jurisdiction and operations. Here are the main tax advantages:

Key Tax Advantages of a Cayman Islands Holding Company

No Corporate Income Tax
The Cayman Islands imposes no corporate income tax on profits earned by a company, regardless of whether those profits are earned locally or abroad.

No Withholding Taxes

There are no withholding taxes on dividends, interest, royalties, or other payments made by Cayman companies to foreign shareholders or entities.

No Capital Gains Tax

Capital gains from the sale of shares or assets are not taxed in the Cayman Islands.

No Inheritance or Estate Taxes

Useful for estate planning, as there are no death duties or inheritance taxes in the Cayman Islands.

No Stamp Duty on Share Transfers

Transfers of shares in a Cayman exempt company are generally not subject to stamp duty, unless the shares relate to Cayman real estate.

Asset Protection & Confidentiality

Cayman holding companies can be structured to provide asset protection, and the jurisdiction has strong privacy laws, though these are subject to international compliance frameworks like CRS and FATCA.

Tax Neutrality

The Cayman Islands are often used as a “tax neutral” jurisdiction in global structuring, meaning they don’t add additional layers of tax to investment flows.

Flexible Regulatory Environment

Particularly favorable for private equity, hedge funds, and family offices, with flexible corporate and fund laws.

TBA services

We have 2 decades of experience in the incorporation and management of asset holding companies, whether it be for owning property, or for other reasons such as holding an investment portfolio.

We do not simply incorporate Marshall Islands Holding companies – we always take a client’s needs and personal circumstances into consideration before deciding upon which jurisdiction of incorporation will be best and most suitable.

Owning your assets through a company can reduce or eliminate the inheritance tax, capital gains tax and income tax, and afford confidentiality (seen as a major benefit for those clients residing in high-risk countries). Asset holding companies can also circumvent the need for the granting of probate, an often time-consuming and expensive process, and play a vital role for long term family financial planning.

We are happy to examine possibilities with you for as long as it takes, in order to find the best solution for you and your family.

Please do not hesitate to contact us for more information on how we might be able to benefit you in the ownership of your assets.