To register a company in the Marshall islands
To register a company in the Marshall islands, what are the advantages? The Marshall Islands are located in the Pacific Ocean, Micronesia region.
One of the most significant sources of expanding of the budget of the islands is the registration of organizations carrying out their business activities at the international level.
Despite the fact, that now offshore jurisdictions and their functioning are associated with many problems and difficulties, Marshall companies remain popular because they are protected by the United States. It allows them to follow their classic offshore legislation.
International business organizations in the Marshall Islands
IBOs in the Marshall Islands have a small number of restrictions as for business activity. In general, this flexible legal entity has the right to carry out any entrepreneurial activity, which is under the legislative level. The only exception is financial and gambling services.
In addition, the IBO is not allowed to perform business activities related to citizens and their organizations.
However, they are allowed to enter into professional relationships with lawyers, law firms, investment consultants, trust companies, accountants and similar individuals or companies. Importantly, IBOs are exempt from any form of local taxation, since they are a separate type of local corporations.
Business companies of an international type are classified as non-resident legal entities of the Marshalls, so both an individual and a corporation can register them. A single director manages IBO. He or she may be a shareholder at the same time.
There are no minimum capital requirements in the Marshall Islands. Capital can be fixed in any (or several at once) currencies. The minimum capital can correspond to the value of just one share, that is, 1 US dollar.
Shares may be issued in any form, but it is not recommended to issue share due bearer.
Besides, the IBO is not subject to tax reporting obligations. The Marshall Islands Government does not require any accounts or annual reports.
In addition, shareholders of such companies may not disseminate information about their activities in order to enter it in the public register.
to register a company. Benefits of International Business Organizations
One of the main advantages of a company that is registered on the Marshalls is the ability to expand capital by offering its shares to the public.
At the same time, it is not limited to the local market only. IBOs, among other things, can trade without restrictions and provide investment consulting.
Thus, offshore companies in the Marshalls can be freely used as holding structures for owning any property of other states, and for conducting brokerage activities.
IBO: structure and principle of carrying out business activities
Internal non-resident company is the main form for registering of IBO. The liability that shareholders bear for this organization is limited to the size of the shares they hold. Shares are paid in cash or through the transfer of other assets.
The IBO is obliged to choose at least one director, who can be an individual or legal entity, resident or non-resident – there are no restrictions here.
A secretary is also mandatory, but he or she cannot be a non-resident. Every year, the shareholders of the company are required to hold a meeting. This can be done in any country of the world, via phone or via communication through other electronic means.
Thus, the advantages of registering business companies of international level in the Marshall Islands are obvious.
As already mentioned, property and inheritance are not taxed in the Marshalls, that allows you to build a long-term strategy for owning capital and transferring it to be inherited by this or that person.
The accounting department of the company must compile quarterly, annual financial reports and provide declarations to the tax service. Contact us for more information.