The broad geography of activity along with extensive practical experience allows Prifinance to open companies in the Marshall Islands as quickly and competently as in any other prestigious jurisdiction. The country has signed the Hague Convention and created conditions for the free development of non-resident companies. Among the main distinctive features of the islands, there is the exemption from notary attestation of documentation. This is one of the numerous advantages this jurisdiction has. If you wish to run commercial activities here, this may be arranged in one of these forms.
Major Forms of Legal and Business Presence
If you are assessing an opportunity of establishing your business presence in this jurisdiction, it is possible to arrange in the next legal forms:
- Limited Liability Company – a local entity suitable for doing business as the liability of its founders (members) doesn’t exceed the funds contributed to such an enterprise. Another benefit is that the minimum paid-up capital is allowed to be USD1. Minimum 1 shareholder is required in this case.
- International Business Corporation (IBC) – an option suitable for doing business worldwide. The financial obligations of the IBC’s members don’t exceed the funds contributed to such a corporation. A minimum of 1 director is required for an IBC. The minimum paid-up capital is allowed to be USD1 in this case too. But, the basic amount of registered capital shall be up to USD 50,000. Any IBC enjoys a preferential tax regime.
Registration Requirements and Steps
If you are considering an option of company incorporation in the Marshall Islands, its practical realization may cover these preliminary registration steps:
- Deciding on the major business priorities you are going to realize through a future enterprise.
- Selecting and checking a business name for a future body corporate.
- Collecting details about the future founders, beneficiaries, and management of an enterprise (even if such are not disclosed, they should be stored by a company).
- Arranging the registered address for a future enterprise.
- Drafting statutory documents and preparing registration forms.
- Lodging a complete package of required documents to the registrar.
- Opening a corporate bank account for a future enterprise.
- Registering for tax and social security purposes.
- Applying for and getting licenses and specific permits (necessary for regulated activities only).
The registration process in a particular case may vary a bit. Contact our professionals for more precise guidance on the registration matter.
Legal and Regulatory Framework
If you have already decided to buy offshore in the Marshall Islands, you probably know that there are no requirements on the size of the paid-up capital and that its nomination may be in any currency. The director and at least one shareholder (this is the minimum composition of the company) may be citizens of any country. Furthermore, there is nominal service available here. Registration of a company in the Marshall Islands is usually carried out in the form of IBC.
Legal registration of the company in the Marshall Islands requires complete confidentiality and tax exemption (provided the running of activities outside the state). The principal legal act in the area of doing business is the Associations Law of the Republic of the Marshall Islands. In general, the local legal and regulated framework can be considered very advantageous with straightforward procedures for business starting and maintenance.
Tax System in the Marshall Islands
While assessing an opportunity of incorporation of a company in the Marshall Islands, these tax highlights also should be taken into consideration:
- Corporate income tax (CIT) rates – (i) a tax in the amount of USD 80 is levied on the first USD10,000 of income, and (ii) a 3% rate is applied to the rest of the revenue (for a non-resident (i.e. offshore), income is exempted from CIT)
- Personal income tax (PIT) rates – 8-12%
- Sales (instead of value-added) tax rates – 2% or 4%
- Withholding tax (for non-residents) – not imposed
- Capital gains tax (for non-residents) – not imposed
Advantages of the Jurisdiction
Marshall Islands attracts by its inexpensive registration of companies and a favorable business environment. Among the main advantages of the registration of a company in the Marshall Islands are the following:
- Political and economic stability.
- Clear and loyal legislation that makes the Marshall Islands a whitelisted jurisdiction.
- Confidentiality. The personal data is recorded in the closed register. You can also use the services of nominal representatives. Disclosure of information is punishable by law.
- In the Marshall Islands, there is no currency exchange control, liabilities for accounting and reporting.
- Inexpensive registration allows saving money without withdrawing it from circulation. Business owners invest a minimum of facilities to the opening of the company and payment for the services of nominal representatives.
- A possibility to issue bearer shares exists here.
- It is possible to register a company even remotely.
- This is a recognized jurisdiction for launching IPO projects.
- Lots of opportunities for asset protection.
How Prifinance Specialists May Help You
We offer prompt company registration and bank account opening services in the Marshall Islands and worldwide. New registration and ready-made options. Provide extensive details for more precise consultations and suggestions that can be effective for your future project.