Company Formation in Marshall Islands
Updated on Wednesday 24th May 2023
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Company formation in Marshall Islands is recommended in the country's main investment industries, such as construction, tourism, business services, retail and many others. There are many options investors have when it comes to the legal entity chosen for their business and numerous tax exemptions for offshore company formation.
If you want to start a business here, you can rely on our consultants, who can present the conditions that must be satisfied when starting the process of company formation in Marshall Islands.
What is the duration of the registration process in Marshall Islands?
The duration of the registration process is highly influenced by the company type that the investors selected for incorporation. Therefore, you should know that a business in Marshall Islands can take the form of one of the following:
- limited liability company;
- International business company (IBC);
- branch office;
Please mind that investors also have the possibility to purchase a ready-made company, which implies that most of the steps associated with the process of company formation in Marshall Islands do not have to be completed.
The process of company incorporation and other matters associated with starting a business are presented below:
- company incorporation can be completed in 1 to 3 weeks, depending on the selected company type;
- all businesses must have a corporate bank account and this procedure usually takes around 3 to 4 weeks (the same applies for an offshore bank account);
- businesses in Marshall Islands must have their office registered here, therefore they need an office space (a lease contract can be signed in approximately 1 week);
- when the investors will hire employees, the employment registration procedures can be completed in 1 to 3 weeks;
- please know that, regardless of the company type selected, all businesses benefit from a 0% corporate income tax.
Registration requirements in Marshall Islands
When you open a company in Marshall Islands, you will start this process by registering a corporate name with the Registrar of Companies (the procedure can be completed in 1 day). The registration and submission of documents, submitted to the same institution, can be completed in 2 business days.
All corporate documents must be prepared under the supervision of a public notary in Marshall Islands, and this step can take approximately 2 business days. Our consultants in company formation in Marshall Islands can provide legal assistance.
Regarding the minimum conditions your company should fulfill, we mention the following:
- the company can have 1 director;
- it can be founded by 1 shareholder;
- it is also required to appoint 1 company secretary.
What are the tax and accounting exemptions in Marshall Islands?
Although in most countries, companies are charged with many corporate taxes and they need to file financial documents in accordance with the application legislation, in Marshall Islands there are several exemptions in this sense.
For instance, companies are not required to pay the corporate income tax, the withholding tax on dividends, royalties and interest, the stamp duty (these applies if the recipients are non-resident entities).
This makes this country ideal for offshore company incorporation. It must also be mentioned that a company is not required to submit annual accounts and tax returns.
However, bookkeeping formalities do apply. You can learn more about company formation in Marshall Islands from our consultants, who can help you select the legal entity most suitable for your business activities.
You can rely on our team for assistance on post-incorporation matters, such as accounting and taxation, but you can also contact us if you need information on the immigration procedures that can apply for your nationality.