Marshall Islands
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General
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Type of entity | Non-resident domestic corporations, limited liability companies (LLCs),
partnerships and limited partnerships
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Type of law | Common
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Shelf company availability | Yes
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Our time to establish a new company | 1 day
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Government fees for a share capital not exceeding US$ 50,000 | US$0
(varies by amount exceeding US$50,001)
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Corporate Taxation | No
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Double taxation treaty access | No
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Share capital or equivalent
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Standard currency | US$
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Permitted currencies | Any
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Minimum paid up | Any amount greater than US$0
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Standard Share Capital | US$50,000
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Directors
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Minimum number | 1
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Local required | No
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Publicly accessible records | No
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Location of meetings | Anywhere
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Shareholders
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Minimum number | 1
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Publicly accessible records | No
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Location of meetings | Anywhere
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Company Secretary
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Required | Yes
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Accounts
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Requirement to prepare | No
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Audit requirements | No
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Requirement to file accounts | No
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Publicly accessible accounts | No
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Other
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Requirement to file annual return | No
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Change in domicile permitted | Yes
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Introduction
The Republic of the Marshall Islands is situated nearly midway between Hawaii and the Philippines and is the easternmost
Island group in Micronesia. The country consists of two parallel chains of atolls and islands in the central Pacific Ocean, known as the Ratak (Sunrise) chain and the Ralik (Sunset) chain. Together, these chains comprise approximately 1,225 islands and islets, which spread across an ocean of 1.9 million square kilometers.
Population
The Marshall Islands has a population of around 60,000.
Political Structure
British Naval Captain John William Marshall gave his name to the area now known as the Marshall Islands in the 1700s. However, the islands have been under the control of various nations throughout the last few centuries. The Government of the Marshall Islands was officially established in 1978 following the establishment of the Constitution and maintains a politically stable, democratically elected parliamentary system of government. In 1986, the Marshall Islands became a soverign nation, after signing the Compact of Free Assosciation with the United States (US). In 1991, the Marshall Islands became a full member of the United Nations, and has since established diplomatic relations with most of the world’s major maritime and industrial nations.
The Marshall Islands maintain a politically stabe, democratically elected parliamentary system of government. The Marshall Islands parliamentary system consists of two legislative chambers; (1) the Council of Iroij, comprised of 12 tribal chiefs, serves as an advisor to the Presidential Cabinet and reviews legislation affecting customary law or any traditional practice; and (2) the Nitijela, comprisedof 33 senators elected by 24 electoral districts, which elects the President from among its members for a four-year term. In turn, the President appoints a Cabinet of 6-10 members with the approval of the Nitijela, and serves both as chief of state and head of goevernment.
The legal system consists of local courts whose judges are appointed by the Presidential Cabinet. The court system consists of local courts of first instance, a Traditional Rights Court with jurisdiction over real property matters and a High Court with martitime jurisdiction. In all cases, appeals may be brought before the Supreme Court.
Infrastructure and Economy
Agriculture and tourisim are the mainstays of the economy. The principal trading partners are the US, China, Japan and Australia. Two international airports facilitate air transportation with airstrips scattered throughout the larger islands. There are four deepwater docks for large ocean-going ships. Excellent international communications are provided by satelite links for telephone, fax and email. Banking services for citizens are provided by the Bank of Guam, which is FDIC insured, and the Bank of the Marshall Islands.
Language
The official and spoken languages are English and Marshallese.
Currency
The official currency is the US dollar.
Exchange Control
None.
Type of Law
Common Law.
Principal Corporate Legislation
The most recent version of the Marshall Islands Associations Law includes amendments through the 30th Constitutional Regular Session, August 2009. The Associations Law contains Business Corporations Act, Revised Partnership Act, and Limited Liability Company (LLC) Act.
COMPANY INFORMATION
Procedure to Incorporate
For corporations: filing of Articles of Incorporation with Registrar
For LLCs: filing of Certificate of Formation with the Registrar
For Partnerships: filing of Certificate of Partnership Existence with the Registrar
For limited partnerships: filing of Certificate of Limited Partnership with the Registrar.
Restrictions on Trading
Companies may carry on any lawful business, purpose or activity with the exception of the business of granting policies of insurance or assuming insurance risks, trust services or banking.
Powers of Company
Neutral domicile for parties of different citizenship.
Language of Legislation and Corporate Documents
English; dual-language filings accepted with certified English translation; dual language sample filings available in Chinese, French and Spanish.
Registered Office Required
The Trust Company of the Marshall Islands, Inc. is the sole registered agent.
Shelf Companies Available
Yes.
Time to Incorporate
A company can be formed in one (1) working day.
Name Restrictions
Corporate names may be in any language, as long as Roman characters are used, and must contain a standard corporate suffix. Two alternative names should be provided in the event that the first selection is not available. Names may be reserved at no cost for up to six (6) months in advance of formation.
Language of Name
Names may be in any language as long as Roman characters are used.
Names Requiring Consent or a Licence
N/A
Suffixes to Denote Limited Liability
Any standard, internationally accepted, corporate suffix is permitted such as, Limited, Ltd., Corporation, Corp., S.A., A.G., Incorporated and Inc., among others.
Disclosure of Beneficial Ownership to Authorities
No
COMPLIANCE
Share Capital
Shares may be issued in registered and/or bearer form and may be of par or no par value. Par value share may be denominated in any currency. A standard formation is 500 registered and/or shares without par value, or up to 50,000 USD worth of par value stock. Authorized share capital above these amounts will incur a one-time capitalization tax.
Classes of Shares Permitted
Yes
Taxation
All are exempt from Marshall Islands taxation.
Double Taxation Agreements
There are no double taxation agreements.
Licence Fees
Zero fees for a share capital not exceeding US$50,000.
Fees for share capital exceeding US$50,001; vaires by amount exceeding US$50,001.
Financial Statements Required
Audited accounts are not required.
Directors
One director is required for Marshall Inslands corporations.
Company Secretary
One company secretary is required for Marshall Islands corporation.
Shareholders/Members
One shareholder is required for corporations
Disclaimer
Whilst every effort has been made to ensure the details contained herein are correct and up-to-date, it does not constitute legal or other professional advice. Europe Emirates Consultancy does not accept any responsibility, legal or otherwise, for any errors or omission.