Interested to register a company in The Marshall Islands?
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Main characteristics for registration in The Marshall Islands
Corporate tax
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Best choice for:
Online Business
Time to complete the registration
1 dayCompany Registration in the Marshall Islands
The Marshall Islands became a highly attractive jurisdiction for offshore company formation. Thanks to its economically and politically stable business environment, favourable and low tax regime together with unlimited business opportunities, it gives a numerous of business advantages. There are no requirements on reporting, based on which details of shareholders and directors are not available to the public.
This article gives you an overview on how to set up a company in the Marshall Islands and key points on how your business can benefit from it.
Foreign companies and citizens usually consider the following types for company formation in the Marshall Islands:
- Limited liability company: minimum one shareholder, whose name is not disclosed to public. LLC’s do not pay any taxes as long as they do not conduct business in the Marshall Islands. No minimum authorized capital.
- Corporation: this legal entity consists of shares in registered and/or bearer form with par or no par value. Par value of shares may be denominated in any currency. A standard formation is 500 registered and/or bearer shares without par value, or up to 50,000 USD worth of par value stock. Authorized share capital above these amounts will incur a one-time capitalization tax.
- General Partnership: partners are jointly and severally liable for the obligations of the partnership.
- Limited Partnership: consists of one general partner and limited partners. Limited partners’ liability is limited to the extent of their contributions, while general partner remains personally liable for all business obligations.
- Foreign Maritime Entity
Company registration documents to be submitted depend on the type of legal entity you choose from.
It usually takes 1-2 weeks depending on the form of business you choose to set up.
Tips: If you file an application online, then the certificate of incorporation is generated electronically and becomes available once the application is fully completed.
Identification document
International Passport Copy
Or
EU ID card
Address Proof
Utility bill no older than 3 months.
Or
Bank, auditor or lawyer reference letter in English
If the UBO is RUS/UKR national and is listed in RMI documents, certified translation of internal passport showing address
Agreement
- Signed Nominee (Trust) agreement
Translation
Translation: by translating company with name, seal and publicly available records (certificate issued by regulating body or can be found on internet)
If you use the services of Ecompany.Ltd, then we take all paperwork on ourselves and submit the documents to the Registrar of Companies on your behalf.
The company name under which the business is carried out in the Marshall Islands must be pre-approved by the Registrar of Companies before it is incorporated.Â
Prior to submitting documents for approval, it is recommended to conduct company name search within the Registrar and trademark database.
The proposed company name should meet the following requirements:
- it should be unique and cannot be identical or similar to any other company already registered in the Marshall Islands;
- it should not be offensive or misleading;
- a special permission is required for companies containing such word as bank, insurance, building society, royal, trustee company, trust and gaming;
- a company name can be in any language as long as it is in the Roman alphabet with English translation.
The company name should indicate a relevant legal type of company formation such as “Corp”, “Ltd”, “S.A.”, “plc”.
The website Ecompany.ltd allows to conduct company name search for companies registered in the Marshall Islands together with the latest corporate information. Please use our website for checking existing names.
Tips: your company name is the cornerstone of your brand and this is how you make your first impression. So, you should think how it works on your logo, website, and advertisements. It is essential to check whether there is no registered trademark that has identical name. You should try to avoid such similarities; otherwise you will fail to protect your IP rights.
The minimum number of directors is one who can be an individual or a legal entity of any nationality or residency. The same applies to the shareholders’ requirements. This is a great advantage that there is no disclosure of company beneficial owners, shareholders and directors to the public. Only information about the company name is open.
Tips: the services of nominal shareholders and directors in the Marshall Islands are allowed.
Yes, it is necessary to appoint a company secretary in the Marshall Islands. Company secretary can be an individual or corporate body. The same director/shareholder can act as the company secretary.
No accounting and audit is required.
International business companies do not need to submit annual financial statements in the Marshall Islands.
The company registration process in the Marshall Islands is a quick and hassle-free procedure. In order to prepare the full set of documents, it is required to follow these steps:
- checking the proposed company name;
- obtaining a nominal address in the Marshall Islands;
- requesting nominal services of shareholder(s) and director(s);
- appointing a secretary;
- preparing the Articles of Association, application and other documents;
- submitting documents to the Registrar of Companies;
- receiving company certificate of incorporation;
- opening a bank account.
The governmental fee for incorporating a limited liability company is $700. The official fee of IBC incorporation in the Marshall Islands costs as low as $600.
Operational costs in the Marshall Islands are low, especially because there is no requirement to have accounting and audit for international business companies.
When registering a company in the Marshall Islands, registration and incorporation fees are paid.Â
In most cases it is necessary to cover costs related to obtaining a legal address and appointing shareholder(s) and director(s). Though you do not need to have a physical office in the Marshall Islands, it is required to have a legal address. It is possible to have a nominal legal address for which you need to pay. You can enjoy nominal services of shareholder(s) and director(s). The fee for nominal services are paid on an annual basis.
The fee for the company registration in the Marshall Islands is €1,850. Our company prepares all set of company documents and submit them on your behalf.
The company registration process in the Marshall Islands is quick and hassle-free. In order to prepare the full set of documents, it is required to follow these steps:
- checking the proposed company name;
- obtaining a nominal address in the Marshall Islands;
- requesting nominal services of shareholder(s) and director(s);
- appointing a secretary;
- preparing the Articles of Association, application and other documents;
- submitting documents to the Registrar of Companies;
- receiving company certificate of incorporation;
- opening a bank account.
Once all documents are ready and submitted, it takes 2 days to complete the registration process.
Ecompany.Ltd assists on all stages of company formation in the Marshall Islands. We conduct all paperwork, including translation of documents for registration purposes. Our company submits all documents on your behalf, so you do not need to visit the Marshall Islands for this purpose.
There is a belief that the RMI is used by businesses that want to hide money received from illegal activities. The RMI laws allow to hold information about beneficiaries in privacy and to gain tax benefits. However, companies registered in the Marshall Islands have a positive reputation among business practitioners and financial institutions, because in practice many well-established and reputable companies are incorporated there and they are in full compliance with anti money laundering laws in the MI.
Upon successful company formation in the Marshall Islands, the Registrar of Companies issues the certificate of incorporation.Â
The certificate contains such information as company name, registration number, registration date. It is sealed and stamped by the official body.Â
Together with the Certificate of Good Standing, it confirms that the relevant company is duly existed in accordance with the Marshall Islands Business Corporation Act. Upon request, the certificate can be accompanied with good standing wording meaning a confirmation that a company has been in continuous, unbroken existence since its incorporation.
Ecompany.Ltd assists companies with obtaining the Certificate of Incorporation and the Certificate of Good Standing. Upon demand, we help with legal translation, notarization and obtaining an apostile.
The Registrar of Companies in the Marshall Islands is responsible for company formation and management of registration of company details during its existence. Through the Registrar of Companies, it is possible to obtain the following information about each company:
- company name
- company type
- company registration number
- date of incorporation
- business activities
- legal type of company
- registered agent (if available)
- company status (e.g. registered, or in liquidation)
The public records do not contain information related to shareholders and directors, as such company is not required to filed with the Registry in most cases.Â
The experienced team of Ecompany.ltd can provide you with consulting advice on economic substance in the Marshall Islands as well as the registration of yachts within its territory.Â
A shelf company in the Marshall Islands, also called a “blank company”, or “aged company”, is a company that is established by law firms and accountants.Â
However, buying a ready-made company or shelf company is no longer practicable in the Marshall Islands, since online formation of a new company is much cheaper, faster and safer procedure. When establishing a new company in the Marshall Islands, it is possible to set it up based on your business needs. For instance, you are free to choose any company name, choose your preferred address, etc.
That’s said, if you are considering to start your business in the Marshall Islands, then it is advisable to incorporate a new company.
International Business Company (IBC) is the special form for non-resident domestic company formation in the Marshall Islands. Provided that IBC does not operate in the Marshall Islands, it is exempt from all local taxes. There is no requirement on reporting, based on which details of shareholders and directors are not available to the public. The Marshall Islands is commonly used for ship registry services for vessels and yachts.
Ecompany.ltd has an extensive expertise in offshore company formation and tax planning in the Marshall Islands. Please contact us for company formation inquiries.
The Marshall Islands offers excellent advantages for structuring an offshore company, including:
- nominal services in the Marshall Islands
- no minimum share capital
- no corporate tax, income tax, withholding tax, asset tax, and stamp duty
- no accounting and audit
It takes 2 working days to complete the registration process in the Marshall Islands. The total term of company formation in the Marshall Islands with opening a bank account can take 2-3 months. However, International Business Companies are required to perform its business activities outside the country. Thus, a bank account should be opened in another country.
A limited liability company is the most commonly used type for company formation in the Marshall Islands. LLCs obtain a status of IBC if they do not conduct any business in the Marshall Islands. LLC is formed by a minimum of one shareholder whose personal details are not publicly disclosed. There is no minimum authorized capital. The share capital can be denominated in any currency. This is the most popular type of company formation for offshore business in the Marshall Islands.
The whole process of company registration in the Marshall Islands is done online. Compared to other jurisdictions, IBC management and operation is a simple and straightforward process.
Company formation in the Marshall Islands is a rapid and simple procedure, as all documents are submitted online. If you plan to incorporate a company by yourself, then it is advisable to follow official guidelines or read our articles about rapid company formation in the Marshall Islands. Additionally, you may require additional services, such as registered address, nominal services or translation services which would simplify the whole process.Â
Ecompany.ltd services allow you to incorporate a company within the shortest period. You can use our website for online company name check or for incorporation services. Our professional team will prepare and submit all registration documents on your behalf.
Company formation in the Marshall Islands is available for residents and non-residents. Non-residents enjoy privacy benefits and zero local taxes.
The Marshall Islands has a favorable tax regime with 0% corporate tax rate for non-resident companies. Companies registered in the RMI do not need to submit annual reports. It is possible to use nominee services to maintain confidentiality of shareholders and directors. Besides, this country has a well-established legal system and is a member of important international treaties. While considered as an offshore jurisdiction, this country is not on the FATF list, because the anti money laundering in the Marshall Islands is updated in accordance with international standards.
It is essential to check whether an agent provides nominee services for company registration in the Marshall Islands. This jurisdiction allows to maintain the privacy for its shareholders and directors, so many founders want to benefit from this option.
An individual or company of any residency can set up a company in the Marshall Islands and be a 100% owner. There are no restrictions or limitations on foreign residents and nationalities.
There is no necessity to visit the Marshall Islands to register the company. All registration and post-registration operations can be done remotely through an authorized agent.
In the Marshall Islands company formation procedure is regulated in a way that allows you to easily and quickly set up a company without a lot of paperwork. All registration documents are prepared and submitted online.
Ecompany.ltd provides online company formation services in the Marshall Islands. We offer nominal services, including registered address in the Marshall Islands. Our flexible company incorporation services in the Marshall Islands include:
- Low registration fees
- Nominal services, including registered address
- Accounting, tax and legal services
- IBC formationÂ
- Opening a bank accountÂ
To purchase a ready-made company in the Marshall Islands and worldwide, please contact Ecompany.ltd for further details.
When looking for an agent in the Marshall Islands, it is advisable to choose an agent who is able to provide all necessary services for company registration in the Marshall Islands, including local address, nominee services. Usually, this jurisdiction is an excellent destination for operating an international business. If this is your case, then it is advisable to choose an agent qualified in international tax laws.
To maintain the status of a non-resident company in the Marshall Islands, it is not necessary to open a bank account in the RMI. Besides, there are only two banks operating in the RMI. Please contact eCompany.ltd if you need more detailed information about opening a bank account and bank options.
Since there are only two banks in the Marshall Islands, clients usually consider other jurisdictions for opening a bank account. Marshall Islands is not under any sanction list and is not included in a FATF list for non-compliance with anti-money laundering standards, so companies registered in the RMI do not have any problems with opening a bank account in other countries.
It is advisable to use the services of an agent as it may recommend banks in other jurisdictions. RMI companies do not have any difficulties with opening a bank account in other countries. But it is advisable to use the services of an agent that will offer best options among many existing banks.
The cost of company incorporation in The Marshall Islands is Euro.
Online company formation on eCompany.ltd
- You can easily search whether your chosen company name is available for registration in the Marshall Islands. To check the name, please enter the company name in a search field under the top banner on this page and then click “find out”.
- If your chosen company name is available, you can start the process of company formation.
- At checkout, please fill in your personal information and account details for account registration. You can add additional notes or information in your order.
- Complete your order with your preferred method of payment.
- Once your payment is processed, we will contact you about the necessary documents that we need to receive from you in order to prepare incorporation documents on your behalf.
- We will prepare the incorporation documents and submit them for company formation in the Marshall Islands.
- Once the company is incorporated in the Marshall Islands, we will send you a standard set of original corporate documents. Please make sure that you entered your correct mailing address.
Taxes in Marshall Islands
The Marshall Islands is a well-known and favored jurisdiction for establishing offshore companies. It statutorily exempts non-resident legal entities from corporate taxes in the Marshall Islands. It is a zero rate jurisdiction in relation to companies tax in the Marshall Islands, so international business companies do not need to pay such corporation taxes as tax on income, profits, dividends, royalties, compensation or other taxes applied to sources of revenue. Only tax resident companies (domestic business) pay taxes in the Marshall Islands. This article primarily covers tax matters applicable to non-resident domestic entities.
The Marshall Islands tax resident companies are those companies that are registered in local registries of the Marshall Islands and its management and business is carried out in the Marshall Islands. Non-resident domestic Marshall Islands companies are registered in the international registries and issued with certificate of tax residence. However, non-resident domestic entities need to comply with Economic Substance Regulations and file annual reports on economic substance.
Non-resident companies are exempt from corporate taxes in the Marshall Islands. Domestic companies are exempt from income tax, but shall only pay business gross revenue tax (BGRT). This Marshall Islands business tax is assessed at the rate of $80 for the first $10,000 of annual gross revenue and 3% on amounts over $10,000. Local taxes for domestic companies differ from atoll to atoll.
The corporation income tax rate is 0%. Since the rate of corporate tax is reviewed annually, please contact us for updated information.
Overseas companies do not pay corporation income tax in the Marshall Islands.
Non-resident companies are exempt from corporation tax computation in the Marshall Islands subject to their economic substance requirement as stated above.
Companies incorporated in the Marshall Islands do not need to file annual returns, if they are tax residents of another jurisdiction. Starting from July 2020 such entities need to file an Economic Substance Declaration to the Registrar of Companies of the RMI to prove such residency of another country.Â
The Economic Substance Declaration deadline is one year starting from the anniversary date of the entity. Companies need to comply with the tax declaration deadline on an annual basis. Failure to comply with the deadline is subject to a fine of $10,000 for the shareholders and directors.
Once a company proves its tax residency in another country, such international company is not required to prepare annual accounts and file annual returns.
International companies are not required to prepare annual accounts, file annual return, etc.
There is no withholding tax on interest and dividends. There is a free repatriation of profits, dividends and capital.
Offshore companies registered in the Marshall Islands are exempt from dividend tax.Â
There is no withholding tax on interest and dividends. There is a free repatriation of profits, dividends and capital for non-resident domestic companies.
Interest income is exempt from tax liability in the Marshall Islands. There is no withholding tax on interest in the Marshall Islands.
There is no tax on royalties in the Marshall Islands.
There is no capital gains tax in the Marshall Islands for non-resident domestic companies.
There is no VAT or GSTÂ in the Marshall Islands.
Non-resident domestic companies do not need to pay any stamp duties in the Marshall Islands.
Investment and other passive income is tax exempt in the Marshall Islands.
The Marshall Islands does not levy tax on capital gains. For this reason, there is no tax on selling a business in the Marshall Islands.
Company Liquidation
Although the process of company formation in Marshall Islands is fast and simple, the liquidation process requires some time and efforts.
The High Court of the Republic of Marshall Islands may decree dissolution of the company based on the application from creditors or if the company does not carry on the business in conformity with its corporate documents. Besides, a company in the Marshall Islands can be dissolved by public authorities if the company failed to pay annual license fees.
Before the cancellation is filed to the Office of the Registrar of Corporations, the company manager may prosecute and defend suits, settle and close the company’s business, convey property and distribute remaining assets of the company, all without affecting the liability of members and managers.
Once the company is wound up, all assets shall be first distributed to creditors, and then to managers and members of the company. Once all claims are settled and assets are paid, the company is cancelled from the Registrar of Corporations.
A company in the Marshall Islands is liquidated voluntary based on the decision of shareholders. Further, a company is dissolved and its affairs are wound up based on the expiration of term specified in the company’s certificate of formation or upon happening of events specified in the corporate agreement (e.g. LLC agreement).
Shareholders of the company appoints the liquidator. Upon dissolution, the liquidator files a certification of cancellation in the Office of the Registrar of Corporations. The liquidator is responsible for preparation of financial statement, audits books, settle outstanding payments and submit tax returns during the liquidation procedure. The remaining balance is paid to the shareholders. Once all payments are settled, the company is cancelled from the Registrar of Corporations.
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