Where will your business feel best? This is by no means an easy question as there are too many factors to be taken into account before the right decision is made. And there is no one-size-fits-all solution here as the jurisdiction that would be perfect in all respects simply does not exist. If your company is going to complete an IPO, for example, the Marshall Islands is a perfect place for that. However, if you want a little less transparency, we would recommend another jurisdiction.
We would like to invite you to our portal called International Wealth where you will find a lot of useful information on international business and banking, investment, tax optimization, and so on. Read more on how to open a business in the Marshall Islands and find other articles devoted to this popular offshore jurisdiction. Our posts are written by practical specialists who help people with company setup and corporate account opening on a daily basis.
You can book a session with our expert to discuss whether the Marshall Islands (or any other destination you have in mind) would be good for your business. We will help you choose an ideal place for your company, and the good news is that this service is free. However, if you want us to help you with company registration, we can do so for a reasonable fee to give you more time to concentrate on your business rather than administrative issues. Follow the link and book a session today!
Marshall Islands: Overview
The Marshall Islands is definitely not a jurisdiction that we would recommend for absolutely all businesses. However, sometimes an IBC opened here would be an optimal choice.
If you want to set up a trust, or a bank, or engage in insurance/reinsurance activities, the Marshall Islands is a poor choice. In these cases, an IBC will not work well or it will simply be impossible to establish it. The same can be said if your business activity is gambling.
The Marshall Islands depend on the USA, a jurisdiction that requires as much transparency as possible. So if your focus is on confidentiality and anonymity, opt for another country.
Who Can Start a Company in the Marshall Islands?
The Marshall Islands would be an ideal destination for companies that later intend to own ships and yachts registered here. You would probably be surprised to find out that while the island itself is tiny, its ship register is one of the largest ones in the world (there are more than 1,600 merchant ships registered in it!). The services related to this industry are just excellent.
If you are planning an IPO to sell your company’s shares at the world’s most prestigious stock exchanges, the Marshall Islands is a perfect destination. This procedure means that the company will have to comply with strict requirements, including a thorough audit, which is mandatory in the Marshall Islands (so a company incorporated here will command respect). Up to the present day, there are about 40 companies registered in the Marshall Islands that have successfully completed an IPO.
If you are planning to attract investors, incorporation in the Marshall Islands would be an advantage and you will have more credibility than in the case of many other jurisdictions (especially offshore ones).
If you are planning both options (IPO and raising funds), you will need a thoroughly thought-out business plan leading to the IPO stage and an exit strategy to make the whole thing safe for potential investors. If you are ready for this, consider the Marshall Islands for your IBC on a priority basis.
Finally, if your company engages in selling physical goods or providing different services, the Marshall Islands is a good place to establish your business.
Company Registration in the Marshall Islands: Peculiarities
Here are the most important aspects you should take into consideration:
- You will need at least one director and a secretary to manage your IBC in the Marshall Islands, and these can be individuals or legal entities
- The nominee service is allowed by law in the Marshall Islands, and this is good news for all those who want to choose this jurisdiction for company registration and avoid being in the public eye at the same time. That is, your director and secretary can be nominees (we will help you with that if you need to)
- If you are on a tight budget, the positions of the director and secretary can be taken by one person (who can be a beneficial owner at the same time)
- You should be prepared to provide the information about the company’s beneficial owners upon the first request
- Marshall Islands companies are subject to annual certification
- The lists of important company staff (managers, directors, beneficial owners) are regularly checked. Infringements found may result in a fine (up to 50,000 US dollars) or even company liquidation (in extreme cases)
- Bearer shares can be used in the Marshall Islands, but you will have to keep a register of owners
Here are the main aspects to be taken into account:
- The company name can be in any language provided that you use the Latin alphabet
- Prepare several possible options if one of them is unavailable
- All standard corporate suffixes are allowed (Ltd., Inc., Corp., etc.)
- The following words cannot be used in the company name: Insurance, Re-Insurance, Bank, Charity, Foundation, Trust, Assurance
As soon as you provide the name options to us, we will check them in the register to see if they are available.
Company Share Capital
Look at the main details:
- There is no share capital limit: you can start with USD 1
- The share capital can be nominated in any currency
- If there are more than 500 shares without par value or the amount is more than 50,000 US dollars, you will need to pay a small one-time tax at company registration
If you decide to issue bearer shares, keep in mind that the number of banks that will be ready to work with you will be much narrower.
Interested in the Marshall Islands? Do not hesitate to follow the above link to read the list of documents you will need and book a session with our expert to find out more. Use our live chat – we are online!