Frequently Asked Questions
Corporate taxation in Marshall Islands
What types of corporate taxation for a non-resident domestic company?
Non-resident entities including non-resident domestic corporation, foreign corporation, partnership, limited liability company (not doing business in the Republic of Marshall Islands) are exempt from corporate profit tax, income tax, withholding tax, estate tax, stamp duty or any other taxes.
The business operation of an international business company
What type of entity can an IBC in Marshall Islands be formed?
An international business company in the Marshall Islands can be incorporated in the form of non-resident domestic corporation (company limited by shares) regulated under Business Corporations Act.
What business activities are required to be licensed by local authorities?
A non-resident domestic corporation can carry on any lawful business with the exception of insurance, trust services and banking required to obtain permission from local financial authorities.
How long to open an IBC in Marshall Islands?
Company registration in the Marshall Islands is quite fast, and could be as short as one business day.
What are the minimum number and requirement on corporate directors/shareholders?
There should be at least one director/shareholder. Company’s director can be of any nationality and need not be residents in the Marshall Islands. Non-resident corporations are also allowed to appoint a corporate director.
Is information in relation to company members released to the public?
A non-resident domestic corporation is not required to disclose information of company members to the public. But the personal details for director, shareholders and beneficial owners have to be kept, updated and be ready for production upon receipt of inspection demand from registered agent, the Registrar of Corporations or government official.
What is the minimum registered capital for a corporation?
There is no required minimum registered capital. Shares issued can be partly or fully paid. The standard authorized is 500 shares without par value or up to US$50,000 worth of par value share.
Are bearer shares allowed?
Yes, bearer shares are permitted. But information regarding beneficial owners has to be recorded with the registered agent.
Annual compliance requirements
What things needed to be done to maintain the company’s good standing status?
A non-resident corporation is exempt from annual return and tax return filing, financial reporting but subject to following maintenance requirements:
- Maintain one director/shareholder at a minimum;
- Maintain local registered agent and address in the Marshall Islands;
- Keep proper bookkeeping records and supporting documents.