Establishing a company in the Marshall Islands
The Marshall Islands are an island state located in the Pacific Ocean, southwest of Hawaii and east of Micronesia. From the 19th century onwards control of the island switched between various European countries, among them Japan and the U.S., and only in 1990 did they fully gain independence. The government is a democratic republic and its political reality stable. The island spans 181 km2 and has 70,000 residents. State revenues rely, among other things, on activities related to the establishment of foreign companies on the islands. The local infrastructure is highly developed in comparison to neighboring countries, including two power stations, a central water system, two international airfields and 12 deep water docks for ocean liners.
The Marshall Islands boast long, sandy beaches spotted by groves of coconut trees, clear water lagoons, and a bounty of tropical fish, huge tortoises and coral reefs. The climate is hot and humid, with the rainy season lasting from May to November. The islands suffer yearly typhoons and sometimes floods. They are built on atolls, formerly volcanoes that have eroded and produced coral reefs surrounding lagoons. These can span thousands of square acres, gradually being formed over 30 million years.
- In the years 1946-1958 two Marshall Islands – Bikini Atoll and Enewetak Atoll – were used as sites for nuclear testing conducted by the U.S.
- The Marshall Islands have repeatedly voted in favor of Israel in UN assemblies.
- Global warming has led to the rapid rise of sea level, endangering the local residents (as well as other nearby islands in Oceania) and potentially covering large swathes of island surface. The state has approached the UN with a request to mandate use of alternative energy sources to stop the global phenomenon.
The fishing industry, specifically the huge tuna market and export of coconuts, provide a significant measure of island revenue. There is also great tourist potential thanks to the diverse and pastoral shorelines and almost perfect weather, but this has only recently been understood. Today efforts are being made to realize this potential and transform the tourist trade into big revenues. The U.S. military also has a base on one of the islands, contributing significantly to the economy by providing employment to locals and rent. Additionally, the islands receive substantial aid from the U.S.
Companies established there enjoy 0% corporate tax and residents pay low income tax. Offshore businesses need not submit financial reports, and information regarding company shareholders and directors is not accessible to the public.
General
Type of company |
IBC – International Business Corporation |
Relevant Companies Law |
The Republic of the Marshall Islands (RMI) Associations Law (1990) |
Offices |
Law requires companies to provide a local office address |
Language of original incorporation documents |
English |
Finance and Taxation
Currency |
USD |
Corporate tax rate |
0% |
Standard share capital |
50,000 USD in nominal value shares or 500 non-nominal shares |
Office Holders
Company Secretary (Secretary) |
|
Obligation to appoint company secretary |
Required, individual and/or company |
Obligation to appoint local secretary |
Not required |
Type of entity that may function as company secretary |
Individual and/or company |
Director |
|
Obligation to appoint company director |
Required |
Obligation to appoint local company director |
Not required |
Minimum number of directors |
1 |
Type of entity that may serve as company director |
Individual and/or company |
Shareholders |
|
Obligation to register shareholders |
Required |
Obligation to register local shareholders |
Not required |
Minimum number of shareholders |
1 |
Type of entity that may register as shareholder |
Individual and/or company |
Type of shares |
Registered shares |
Accessibility of Information
Company registrar |
Information regarding office holders is not accessible to the public |
Annual Assembly and Reporting
Obligation to hold annual assembly |
Required |
Obligation to prepare financial reports |
Required |
Obligation to submit financial reports |
Not required |
Accept
