Offshore: Marshall Islands

Guide For Offshore Corporate Services In The Republic of The Marshall Islands (RMI)

Marshall Islands, officially Republic of the Marshall Islands, is a country in the central Pacific Ocean consisting of some of the easternmost islands of Micronesia.
After gaining military control in 1944, the United States administered the Marshall Islands under the UN Trust Territory.
In 1979 independence was provided, and full sovereignty was achieved in 1986 under the Compact of Free Association. Citizens can live and work in the U.S. without visas due to COFA.

The islands emerged 70 million years ago from volcanic hotspots. They are a chain of volcanic islands and coral atolls between Hawaii and the Philippines. Bikini Atoll and Enewetak are former nuclear test sites. Majuro Atoll holds the capital.

The Marshall Islands consist of 30 atolls and 1,152 islands made of coral limestone and sand. Neighbours include Wake Island, Kiribati, Nauru, and the Federated States of Micronesia.

Infrastructure

Roadways exist mainly on Majuro and Kwajalein. Other islands have coral or sandy tracks.
Majuro is the main port and can receive large vessels. A dry dock facility services a fleet of 143 ships.
Sixteen atolls have airports; four with paved runways.
Electricity is supplied by diesel generators. Water supply is erratic, and desalination projects are ongoing.
Infrastructure improvements are a national priority for energy, transport, and disaster preparedness.

Economy

Subsistence activities include fishing and cultivation of breadfruit, banana, taro, and pandanus.
Copra and handicrafts provide cash income on outer islands.
The service economy is centered in Majuro and Ebeye.
Fishing remains the main export; licenses are sold to foreign nations.
Agriculture includes coconuts, tomatoes, melons.
U.S. assistance and Kwajalein base lease payments are major economic contributors.
Industry includes handicrafts, tuna processing, and copra.
Tourism is developing.
A Trust Fund with the U.S. supports long-term income beyond 2024.

Type of Law

The Marshall Islands has a mixed legal system: U.S. and U.K. laws combined with local statutes.
Corporate and company laws are modelled after Delaware and New York.

Central Bank

RMI uses the U.S. dollar. The financial system follows the U.S. system with no restrictions on the movement of funds.

Anti-Money Laundering

The Marshall Islands is not on the FATF list of AML-deficient countries.
The last FATF evaluation (2011) rated the country compliant or largely compliant in several areas but partially or non-compliant on core recommendations.

Corporate Entities

The RMI Associations Law (1990) includes the Business Corporations Act, Revised Partnership Act, Limited Partnership Act, and LLC Act.
RMI is ideal for establishing holding or investment companies and exempt companies. Ship registration is also handled here.

Offshore Corporate Entities

A Marshall Islands offshore company is a non-resident entity that may trade outside the jurisdiction and pay no local tax on foreign income.
Registration is governed under the Marshall Islands Business Company Act.
Offshore companies cannot conduct local business or provide banking, insurance, or financial services.
No requirement exists to file financial statements.
Registration can be completed within one day.

Taxation

All non-resident companies are exempt from:

• Corporate tax
• Dividends tax
• Capital gains tax
• Inheritance tax
• Stamp duty

Foreign-owned companies are exempt if they do not conduct business in the Marshall Islands. Registration fees and annual fees still apply.

Registration Requirements

• Minimum one shareholder and one director
• Same person can serve both roles
• Name search required
• Articles of Organization filed by a registered agent
• No local business allowed
• No filing of accounts required

Share structure: 500 registered/bearer shares of no par value or up to USD 50,000 par value.

General Features of Offshore Entities

• Entity Type: IBC
• Government Fees: USD 330
• Corporate Taxation: None on foreign profits
• Double Tax Treaties: No
• Currency: USD
• Bearer Shares: Allowed
• Directors: Minimum 1; corporate allowed; no residency requirement
• Members: Minimum 1
• Secretary: Required; not necessarily local
• Accounts: Prepare yes; file no; audit no
• Annual Return: Not required
• Public Records: Not available
• Change of Domicile: No

Specific Features

• Legislation: Common Law, Customary Law, Local Statutes
• Type of Company: International Business Corporation (IBC)
• Trading Restrictions: None
• Powers: Same as a natural person
• Language: English
• Registered Office: Required
• Name Restrictions: Cannot use bank, chartered, foundation, insurance, partnership, or trust
• Suffixes: Corp, Ltd, S.A., PLC
• Beneficial Ownership Disclosure: No

Terms and Conditions

Information is sourced from relevant authorities.
Acts are subject to change.
Updates will be provided when offshore services are rendered.

Please refer to our SERVICES or CONTACT US if you wish to avail these or other services.