At least one shareholder, whose name is not disclosed to the public.

Incorporation of an offshore company in the Marshall Islands

Country analysis: legal structures

Everything you need to know to set up an operating company with a bank account.

1. Exchange of banking information

β€’ There are prison terms for disclosing customer bank details to third parties (and possibly fines).

β€’ Banks are partially subject to strict customer due diligence regulations (old FATF recommendation 5 / new FATF recommendation 10).

β€’ Banks are fully obligated to maintain sufficient records of customer and transaction data for law enforcement (old FATF recommendation 10 / new FATF recommendation 11).

β€’ Banks and / or other covered entities are not required to report large transactions in currency or other monetary instruments to designated authorities.

β€’ The national administration has sufficient powers to obtain and provide bank information on request, but with some problems.

β€’ There are undue notification and recourse rights against the exchange of banking information upon request, but with some problems.

2. Legal forms

Limited liability company

At least one shareholder, whose name is not disclosed to the public. LLCs do not pay taxes as long as they do not conduct business in the Marshall Islands. No minimum authorized capital.

Corporation

This legal entity is made up of registered and / or bearer shares with par value or without par value. The par value of the shares can be denominated in any currency. A standard formation is 500 registered and / or bearer shares with no par value, or up to 50,000 USD in par value shares. The authorized capital stock in excess of these amounts will incur a one-time capitalization tax.

Collective society

The partners are jointly and severally liable for the obligations of the company.

Limited partnership

It consists of a general partner and limited partners. The limited partners' liability is limited to the scope of their contributions, while the general partner remains personally responsible for all business obligations.

Foreign maritime entity

Marshall Islands offshore company (IBC)

A Marshall Islands International Business Company (IBC), known as a National Non-Resident Corporation (NRDC), is the country's main and most popular offshore company formation vehicle. Its great appeal is due to a number of unique advantages that provide Marshall Islands offshore companies with an unprecedented range of business possibilities.

The minimum number of directors is that which can be a natural or legal person of any nationality or residence. The same applies to the requirements of the shareholders. This is a great advantage that the beneficial owners, shareholders and directors of the company are not disclosed to the public. Only the information about the company name is opened.

Remember

LThe Marshall Islands are a Bitcoin friendly jurisdiction.

OFFICES

Foster Swiss helps our Clients secure offices or we provide an office address. Most emerging markets require our Clients to have a 12-month office lease before company registration is approved.

We help our Clients overcome this challenge in the following ways:

Virtual office service

DDepending on the country and city, the rates range from US $ 900 to US $ 2000 and the annual active virtual office services range from US $ 1500 to US $ 4000).

Shared office space

LThe one-time fee is US $ 850. Thereafter, our Client pays the monthly rent directly to the owner).

Permanent office space

D Depending on the country and the city, the rates range from US $ 5.000 to US $ 8.000).

TAXES

Nor there are double taxation agreements signed by the Marshall Islands.

Marshall Islands companies are exempt from all taxes on income, dividends, interest, rents, royalties, and capital gains on the sale of company shares.

There is no Marshall Islands personal income tax for employees, directors or shareholders of a Marshall Islands offshore company. However, 8% personal income tax applies to persons employed in the Republic of the Marshall Islands.

It is important that our Clients are aware of their personal and corporate tax obligations in their country of residence and domicile; and they will fulfill those obligations.

LEGAL AND COMPLIANCE

DInce 2011, Australia and the Marshall Islands have signed a Tax Information Exchange Agreement (TIEA) on the exchange of information regarding taxes. In addition to the above, Australia and the Marshall Islands signed an Additional Benefits Agreement (ABA) which is an administrative mechanism to resolve transfer pricing disputes between Australian and Marshall Islands taxpayers and tax authorities and eliminate double taxation of certain income derived from retirees, government employees and students.

The process of canceling a company is dictated by the Government. This process will take a minimum of 6 months. Foster Swiss's fee to terminate the project management company is $ 1200. During this 6-month period, it is mandatory to maintain a resident company secretary and a registered office.

Beginning January 1, 2020, the Government of the Marshall Islands will require that all LLCs in the Marshall Islands comply with the new substance requirements. Failure to do so exposes shareholders and directors to i) a fine of up to US $ 10,000 and ii) dissolution of their Company.

COUNTRY PROBLEMS

Lhe Marshall Islands can be perceived as a tax haven abroad.

The Marshall Islands rank poorly as the 153rd least easy place to do business, according to the World Bank's 2020 Doing Business Survey.

There is no regulatory regime in the Marshall Islands for financial services. Consequently, it is not possible to establish financial services companies in the Marshall Islands.

The Marshall Islands have imposed various restrictions on foreign investment for small-scale retail and service industries to protect and promote the interests of its economy. The List of Natural Reserves covers all investment restricted areas. Furthermore, all major industries in the Marshall Islands have state-owned companies, making it even more difficult for foreign entrepreneurs to successfully establish their businesses in this country.

Beginning January 1, 2020, the Government of the Marshall Islands will require that all LLCs in the Marshall Islands comply with the new substance requirements. Failure to do so exposes shareholders and directors to i) a fine of up to US $ 10,000 and ii) dissolution of their Company.

MORE CONFIGURATION SERVICES SOLUTIONS

  • Shareholders and Agents
  • Office permits
  • Protection of trademarks and copyrights. - Market study.
  • Legal support
  • Proportion of details of temporary unions or associations
  • Fusions and acquisitions.
  • Internal control.
  • Group restructuring.
  • Financial management consulting.
  • Buy a business.
  • Valuation of companies.
  • Credit recovery
  • Job solutions
  • Due diligence search on existing companies and individuals

3. Commercial register

The national business registry does NOT include the identity information of the legal owner.

Information on legal owners is not online.

4. Transparency of society

Companies are available without proprietary information.

5. Shareholders publications

The registry of national companies includes the identity information of the final beneficiary.

6. Publication of the company account

No accounting or auditing is required.

7. Country-by-country financial reports

No country-by-country public reporting at all.

8. Corporate tax return

The secondary mechanism is subject to the restrictions imposed by the OECD model legislation; or no secondary mechanism (only the ultimate national parent entity has to file the CbCR. Unilateral cross-border tax rulings (eg, advance tax rulings, advance tax rulings) are NOT available in laws or regulations, or administrative practice.

9. Identifier of legal entities

β€’ The use of an annually updated Legal Entity Identifier (LEI), developed under the guidance of the Financial Stability Board, FSB, is not mandatory.

β€’ The use of an annually updated Legal Entity Identifier (LEI), developed under the guidance of the Financial Stability Board, FSB, is not mandatory for some financial market operators.

β€’ The use of an annually updated LEI for the identification of reporting financial institutions (in accordance with the Common Reporting Standard (CRS) is not mandatory.

10. Measures to avoid tax evasion

Dividend payment: without unilateral relief for double taxation through a tax credit system.

Interest payments: without unilateral relief for double taxation through a tax credit system.

11. Tax matters judicial secrecy

None or restricted access to both criminal and civil tax procedures.

None or restricted access to both criminal and civil tax judgments / verdicts.

12. Opaque structures

β€’ The jurisdiction does NOT issue or accept the circulation of large notes / cash notes of its own currency (of a value greater than 200 EUR / GBP / USD).

β€’ Unregistered bearer shares are available / outstanding or registered by a private custodian.

β€’ Serial LLC / Shielded Cell Companies are available.

β€’ Trusts with escape clauses are not prohibited.

13. Anti-money laundering legislation

The Republic of the Marshall Islands is not on the FATF List of countries that have been identified with strategic AML deficiencies.

The last Mutual Evaluation Report related to the implementation of the rules against money laundering and terrorist financing in the Republic of the Marshall Islands was carried out by the Financial Action Task Force (FATF) in 2011. According to that Evaluation, it was found the Republic of the Marshall Islands to be 5 compliant and largely compliant with 16 of the 40 + 9 FATF Recommendations. Partially or did not comply with the 6 basic recommendations.

Overall Non-Compliance Score of FATF Standards in Percentage: 55,1%. (100% = all indicators rated as not met / low level of effectiveness; 0% = all indicators rated as completed or highly effective).

14. Automatic exchange of information

The Marshall Islands signed the MCAA and committed to exchange information on or before 2019. The number of significant activated AEOI relationships (based on the MCAA) published by the OECD as of October 2019 is 57.

What type of private banking exists in the Marshall Islands?

International Banking
Local banking

Central bank security ⭐⭐⭐

Each filtering bag international and digital banks They're available.

CRS: YES.

Real bank operations: 90%.

Visa type: US $, €.

Joint accounts.

Remote management account: To consult.

Asset management Depending on the rating of the company.

Rates: It depends on the type of account.

Credit / debit cards in local currency

Why with Foster Swiss?

Foster Swiss is an international company registered in Switzerland aimed at providing financial and compliance advice on a variety of topics related to company formation
and commercial banking internationally. We are specialized in the implementation of businesses in different jurisdictions, which means that we offer value-added services helping our clients in their expansion abroad.

Some of these services include:
Advice and consultancy,
visas, offices, nominated director / shareholder / secretary,
accommodation if necessary… to name a few.
Check with your assigned consultant for more information.