Offshore Company Formation
The Republic of the Marshall Islands (RMI), situated in the Pacific Ocean, is a collection of atolls and islets, with the largest and most populous atoll being Majuro, serving as the capital. Over the years, it has transitioned from being a Spanish colony until 1885, a German colony from 1917, and a Japanese colony until 1944. After 1945, it gained territorial status under the United States.
In 1986, the Marshall Islands achieved independence through a Compact of Free Association with the United States, resulting in the adoption of the US dollar as its official currency. With English and Marshallese being the primary languages spoken, it operates as a democratic and independent nation, characterized by a legal framework partly inspired by Delaware State’s legislation. This framework prioritizes business-friendly practices, making it an appealing choice for international corporations, Partnerships, Limited Liability Partnerships, and Limited Liability Companies.
The Republic of the Marshall Islands boasts political stability, featuring a democratically elected parliamentary system with a four-year presidential term. Moreover, it is home to one of the world’s largest ship “Registrars”, rendering it a preferred location for companies involved in yacht and ship ownership and management.
Incorporating Offshore in Marshall Islands
- Total area: 181 sq. km
- Population: 70,000
- Political status: Republic
- Capital: Majuro
- Official languages: English, Marshallese
- Official currency: US Dollar (USD)
- Time zone: GMT +12
- Non-resident Domestic Corporation.
- Marshall Islands non-resident companies require a minimum of 1 Director, who may be a natural person or a corporate entity from any legal jurisdiction. Information on company Directors is maintained by the local Regulated Agent.
- Marshall Islands companies (non-resident companies) require a minimum of 1 shareholder, who may be a natural person or a corporate entity from any legal jurisdiction. Information on company shareholders is held by the Regulated Agent.
- Marshall Islands non-resident companies require a minimum of 1 Secretary, who may be a natural person or a corporate entity from any legal jurisdiction. Information on the company’s Secretary is maintained by the Regulated Agent.
Authorised and Issued Share Capital
- Standard authorised capital: USD 50,000. No requirement for capital to be fully or partly paid upon incorporation.
- Company names must end with words like “Incorporated,” “Corporation,” “Limited,” or suffixes like “Inc.,” “Corp.,” “Ltd.,” “S.A.,” “GmbH,” etc. Company names containing restricted terms such as “Bank,” “Insurance,” “Trust,” “Assurance,” “Imperial,” “Royal,” etc. are not permitted unless the company holds a relevant national operating license.
Beneficial Ownership Information
- Information on ultimate beneficial ownership must be disclosed to the Regulated Agent and is treated confidentially.
Filing of Annual Return
- No requirement to file an Annual Return.
Filing of Financial Statements
- No requirement to file financial statements for non-resident companies.
- Non-resident Marshall Islands companies are not subject to corporation tax in the Marshall Islands.
- The Marshall Islands has not entered into any Double Tax treaties with other countries.
Restrictions on Marshalls Islands Companies
- Prohibited from conducting business with residents of the Marshall Islands.
- Prohibited from engaging in banking or insurance-related activities.
Incorporating a Marshall Islands Offshore Company
Incorporating a Marshall Islands offshore company offers several key advantages:
- Fast incorporation, typically within one business day.
- Statutory tax exemption for LLCs, partnerships, and corporations incorporated by non-residents, provided they generate income outside the jurisdiction.
- No currency exchange control, allowing capital to be expressed in any currency.
- Low share capital requirement for incorporation, starting at just $1 USD.
- Flexibility in the number of required shareholders, directors, and secretaries, all of whom can be the same person.
- No requirement for residency of Directors or Shareholders, who can be of any nationality and located anywhere in the world.
- No need to file company financial accounts or undergo audits.
- High level of confidentiality, making the Marshall Islands one of the most secure and confidential offshore jurisdictions.
- No requirement for a visit to the Marshall Islands for company formation.
- Competitive pricing and cost-effectiveness.
- Simple maintenance with no annual filings.
- Permits the migration of domicile into and out of the jurisdiction.
Main Uses of a Marshall Islands Offshore Company
A Marshall Islands offshore company serves various purposes:
Facilitates legitimate tax reduction by structuring financial and business affairs.
Ideal for individuals working overseas to minimize their tax burden and accumulate income in an offshore company. It’s also suitable for designers, authors, consultants, and entertainers who can assign their income to an offshore company.
Offshore companies can help mitigate uncertainties and unfavorable consequences related to inheritance when assets are held in different countries.
An offshore company, in combination with a trust, provides accumulation of investment income and long-term benefits for beneficiaries, while avoiding high taxes
Conducting business with low or no corporate taxes
Marshall Islands companies are tax-efficient, saving money by reducing compliance and regulatory costs.
Shields assets from creditors, adverse claimants, or other parties and secures against future claims like bankruptcy, judgment creditors, and litigants.
Ideal for investing in property, stocks, commodities, and other assets while providing anonymity and tax savings.
Offshore companies can own ships and yachts, offering a cost-effective method of ownership.
Simplifies property transfer by transferring ownership through company shares, avoiding complex and expensive sales or probate procedures.
Reduces payroll costs and travel expenses for employees working abroad.
Provides more control during the client’s lifetime and saves on third-party trustee fees by creating a corporate trustee for a family trust.
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