Tax Haven Marshall Islands

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Developing the private sector sits at the core of the Government’s endeavours to generate employment, foreign exchange, human resource development and the replacement of imports by goods produced locally in tax haven Marshall Islands. And as such, emphasis is placed in diversifying the economy. A series of regulatory initiatives were also undertaken by the Government through the Trade and Investment Services Division, and especially include the issuance of Foreign Investment Business Licenses to foreign investors.

Regardless of the circumstances surrounding the creation of any business entity, the usual goal is to maximize its profitability while minimizing the risk of exposing its beneficial owners to personal liability. For this reason, the corporate law of a jurisdiction takes on paramount importance. First enacted in 1990, the Marshall Islands Associations Law is one of the most modern set of statutes in the world. The Marshall Islands Associations Law contains the Business Corporations Act (BCA), Revised Partnership Act, Limited Partnership (LP) Act and Limited Liability Company (LLC) Act.

Country Overview

Tax haven Marshall Islands are grouped as a Small Island Developing State, comprising twenty-nine atolls and five isolated coral islands. The Ralik Chain and the Ratak Chain are two of the groups in which the atolls are divided and are considered the most important among the other atoll groups. There are also atolls that are uninhabited such as Ailinginae Atoll, Rongerik Atoll, Toke Atoll, Erikub Atoll, Bikini Atoll and Jemo Island. Tax haven Marshall Islands can be found west of Hawaii.

The total population on four of the main atolls is calculated at about 63,000, with over 19,000 and 10,000 inhabitants in Majuro and Ebeye respectively. The official language of tax haven Marshall Islands is Marshallese and a smaller segment of the population speaks Japanese. English is mainly used as the language for business correspondence.

Tax haven Marshall Islands has a constitution based on the Westminster system and is an independent democratic country in free association with the US, which passed in 1986 under the Compact of Free Association. The Compact is expected to remain effective until 2023 after is renewal and amendment in 2004.

The economy of tax haven Marshall Islands is based on two major sectors which are built on subsistence agriculture in activities such as fishing, banana, pandanus, taro and breadfruit farming, and a modern sector focusing on banking, wholesale, the service industry and retail trade. Handicrafts and copra production are important income earners for the outer islands of tax haven Marshall Islands.

Marshall Islands Fiscal Incentives and Advantages

As tax haven the Marshall Islands offer many business and tax incentives, most of which are geared towards boosting and maintaining the Islands’ economy while creating a vibrant business environment for investment. Some benefits of investing in tax haven Marshall Islands are listed below:

  • Strong privacy laws
  • Quick company incorporation procedures
  • Not a signatory to the EU Tax Directive
  • Zero corporate and income tax on offshore companies
  • Duty free access into the United States for all goods and commodities produced or manufactured in tax haven Marshall Islands under the Compact of Free Association
  • Availability of satellite, telephone, telex, and cable facilities

Marshall Islands Legislative Framework

Offshore business companies incorporated in the Marshall Islands are subject to the Marshall Islands Associations Law. This law governs all offshore entities incorporated in tax haven Marshall Islands. Offshore business entities are incorporated through registered agents which include corporate service companies, lawyers, qualified shipping companies and accountants who are the intermediaries qualified to carry out such offshore activities in the Marshall Islands as tax havens. The existing offshore acts in tax haven Marshall Islands are the:

  • Business Corporations Act
  • Limited Liability Company Act
  • Revised Partnership Act
  • Limited Partnership Act

Marshall Islands Offshore Services

Tax haven Marshall Islands are a developing offshore financial centre and provides professional offshore services. Offshore entities incorporated in tax haven Marshall Islands are flexible and supported by a modern legislative framework. Marshall Islands offshore entities are not referred to as ‘offshore’ but ‘non-resident’ entities and are capable of redomiciling out of and into the Marshall Islands. Marshall islands offshore companies are utilized for joint ventures, holding ships and vessels, protecting assets, investing in real estate, holding patents and trademarks, trust and estate planning, public offerings for raising capital on markets globally, international trade and holding securities and bank accounts.

Offshore entities that can be incorporated in tax haven Marshall Islands include:

  • LLC (Limited Liability Companies
  • Partnerships (General, Limited)
  • International Business Companies (IBCs)
  • Foreign Maritime Entities (FMEs)

Marshall Islands International Registries Incorporated

Tax haven Marshall Island’s International Registries, Inc. (IRI) along with its affiliates – the Maritime and Corporate Administrators – has been in charge of corporate programs and the administration of the tax haven Marshall Islands maritime for more than 50 years. IRI prides itself as the world’s most experienced and oldest privately governed ship and corporate registry. The International Registry Inc. is not responsible for giving legal advice to customers but provides necessary information resources on the incorporation procedures and requirements for offshore entities, exiting offshore acts, amendment and dissolution procedures. The corporate headquarters of the IRI in tax haven Marshall Islands is located in Reston, Virginia, United States and has 16 offices in leading financial and centres across the globe.

Recent Developments

The Marshall Islands Business Corporations Act (BCA) is modeled after the corporate laws of the United States (US) and the United Kingdom (UK), and allows for the appointment of a Managing Director and Corporate Secretary. Under the BCA, the board of directors and corporate officers may be individuals or business entities. Additionally, there is no mandatory requirement to file the names of directors, officers or shareholders with the Registrar of Corporations or Registered Agent. However, this information may be filed or recorded voluntarily.

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