The Marshall Islands is a Pacific state in Micronesia. The most significant sectors of the economy are agriculture and the service sector. Also, tourism is well-developed. Due to its low taxation, the jurisdiction has become a well-known offshore zone. The republic is located on 29 atolls in Micronesia. The Marshall economy is mostly typical of the countries of Oceania and depends on the material resources that other states provide as financial assistance. The main areas are services (financial), tourism, and agriculture. The main currency of the islands is the US dollar.
The republic is part of the UN and is a member of the Asian Development Bank and other organizations.
Nuances of the company opening
Before registering an offshore company in the Marshall Islands, you need to decide whether this jurisdiction is suitable for the chosen direction of the business. The territory is not suitable for creating a bank or trust, insurance services, or casinos.
The most profitable is the opening of a company in the Marshall Islands, which is associated with the ownership of sea vessels. Transport can be registered there. It is beneficial to open a business on the territory if you need to go through an IPO and bring the company to the stock exchange.
An offshore company registered in this territory is suitable for performing international trade operations and providing some services. It is irrelevant to open holdings, insurance companies, or casinos in a jurisdiction.
Requirements for company registration
It is most profitable to open an international business corporation on the islands. In the future, part of the corporation can be easily sold. Registration requires a director and a secretary. These functions can be performed by both individuals and legal entities.
Nominee service may be used subject to additional charges. The director, secretary, and owner can be one person. In 2019, the Marshall Islands were removed from the EU offshore blacklist as the information exchange requirements are being adjusted. Due to this action, the country’s reputation has improved.
The name for the company can be drawn up in any language, but it is allowed to use only letters of the Latin alphabet. The name must be unique. Capital can be anything.
What documents will be required:
- Data from the passports of the founders;
- Information about the place of residence;
- Registration documents.
Every year from the moment of registration of the company, it is required to organize a certification, that is, to check the list of directors, beneficiaries, and addresses. All data must be true and current. If these requirements are violated, sanctions may be imposed.
How to register a company in the Marshall Islands: accounting and real presence
The official position of the offshore Marshall Islands on accounting: do not submit it. However, this does not mean that you will not have to lead it. Even if such a desire arises, let us clarify a couple of points.
Firstly, if you are planning to open a bank account, then accounting is what the bank has every right to demand from you. An offshore company is already not the most desirable client for modern banks, and if he does not yet conduct accounting and hides data, it is easier to refuse than to start and continue cooperation.
Secondly, accounting acts as proof of the legality of the origin of your funds. You have every right to use the earned funds as you please, but when buying a yacht, a house, or opening a foreign bank account, you may be asked for proof. These can be documents on the sale and purchase of property, on the salary, or the accounting department of your company, which brings you profit.
So, despite the temptation to abandon accounting, it is better to have it in an accessible place and up-to-date.
It is also worth mentioning the real presence of the substance. By law, a company must have a local registered office. Of course, it will be great if you have an employee sitting at this address, doing work and answering calls. However, the Marshalls remain offshore: distant and not very well suited for a permanent presence. At the same time, in some cases, it is necessary to prove the reality of your business.
Such proof will be a functioning website, a personalized corporate mail, an employee at a remote work, who fulfills the job description.
Even though the Marshalls are a classic offshore company, you should not fall under the definition of a shell company. Bogus companies bring more problems than benefits. Therefore, take the minimum steps and provide substance to your business.
Pros of opening the business
It is beneficial to open a company in a jurisdiction if there is a need to optimize taxation and protect information. In addition, opening a company is relevant if there is a need for the development of international business.
In this country, you can register sea transport vessels on attractive terms, bringing the company to an IPO. The territory has a positive reputation, it meets international standards and was excluded from the blacklist.