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Marshall Islands Corporation

Marshall Island

Synopsis

Marshall Island Company SetupTThe Republic of Marshall Island is situated in the central North Pacific Ocean. It consists of 34 islands, the islands were sighted by Spain in the 1500’s, but remained essentially un-colonized until the late 1800’s. The country is a totally independent nation that became self-governing in 1979 and has been a full member of the UN since 1991.

The laws of Marshall Islands are modeled after the laws of the State of Delaware. The Associations Law of the Marshall Islands comprise the Business Corporations Act 1990, as amended; the Partnership Act 1990, as amended; the Limited Partnership Act; and the Limited Liability Company Act, 1996 as amended.

The most popular type of entity is the Corporation. The incorporation of a non-resident domestic corporation is governed by the Business Corporations Act, 1990, and it is defined as a corporation for profit not doing business in the Marshall Islands. These companies cannot trade within Marshall Islands, cannot provide banking, insurance and trust services.

The Marshall Islands Corporation

The Marshall Islands Corporation has the following characteristics:

Shareholders: A minimum of one shareholder is required. The standard authorized share capital is 500 shares without par value or a capital with a stated par value up to US$ 50,000. The authorized share capital may be expressed in any currency. Marshall Islands’ corporations may have registered shares, bearer shares, and preferred shares, and redeemable shares, with or without par value and shares with or without voting rights.

Directors: A minimum of one director is required, and corporate directors are permitted.

Officers/Secretary: Corporations must appoint a company secretary who may be a natural person or a body corporate.

Restrictions on Name & Activity: Names cannot be identical or similar to an existing company. Must end with one of the following words, – Limited, Corporation, Incorporated, Societe Anonyme or Sociedad Anonima, Gesellschaft mit beschrankter Haftung or their abbreviations.

The following words and their associated activities, cannot be used: Assurance, Bank, Building Society, Chamber of Commerce, Chartered, Co-operative, Fund, Imperial, Insurance, Foundation, Municipal, Mutual Fund, Royal and Trust.

Local Requirements:A resident agent is required in the Marshall Islands, as is a registered office. There are no exchange controls relevant to non-resident corporations; however, such companies may not be used to do business with persons resident in the Marshall Islands.

Timescale: Incorporation can be achieved within 2-3 working days.

Annual Reporting: There is no requirement to file financial statements, but records should be maintained to reflect a company’s financial status.

Taxation:The Marshall Islands statutorily exempts non-residents companies from taxes. Also, Marshall Islands Corporations are non-resident companies and hence not entitled to tax residency certificate. There are no double taxation treaties with any nation.

Secrecy::The laws of the Republic of the Marshall Islands allow bearer shares. In the case of registered shares, the Marshall Islands does not keep a registry of shareholders. Likewise, Marshall Islands Law does not require that the names of officers and directors be filed with the Registrar of Corporations.

Company Renewal:Renewal for Marshall Island’s Corporations fall every anniversary date of incorporation.

Latest valid passport copy and recent utility bill for address proof of shareholder/director are required to be submitted at every renewal as a part of enhanced due diligence. If shareholder is a corporate entity, then latest certificate of incumbency and above stated docs of directors would be required.

Documents Required:
KYC Documents for individual Director/Shareholder

  • Passport copy
  • Proof of address (dated less than 3 months)
  • Bank reference (dated less than 3 months with satisfactory record clearly mentioned and also the time period the client has been dealing with the bank: minimum of 2 yrs)
  • Detailed CV
  • Professional reference

KYC for Corporate Director/Shareholder

  • Certificate of Incorporation
  • Registered address and place of business
  • Certificate of current standing if incorporated more than 1 year
  • Register of Directors
  • Register of Shareholders
  • Memorandum & Articles of Association

Whilst every effort has been made to ensure that the details contained herein are correct and up-to-date, it does not constitute legal, tax or other professional advice. We do not accept any responsibility, legal or otherwise, for any errors or omissions.