Marshall Islands company registration

When structured properly, company registration in Marshall Islands is an ideal, tax-efficient way to conduct international business. Further information can also be found in this Marshall Islands incorporation guide:

Advantages of Marshall Islands company registration

    Marshall Islands tax

  1. If properly structured, setting up an offshore company in Marshall Islands is a legitimate way to book international profits without paying tax. The Marshall Islands is an ideal jurisdiction to establish a holding or Marshall Islands investment company;
  2. Under the Marshall Islands business incorporations act, a minimum of one shareholder and one director is required for Marshall Islands business setup. They need not be resident in the Marshall Islands, and can be of any nationality;
  3. There is no public Marshall Islands registered company disclosing shareholders’ and directors’ details;
  4. There are no minimum capital requirements for Marshall Islands company formation;
  5. Following Marshall islands company incorporation, it is not necessary to submit annual financial statements and tax returns to the government;
  6. It is simple to open global corporate bank accounts to support Marshall Islands business setup. Healy Consultants works with internationally recognised banks such as HSBC, Standard Chartered and Citibank to provide corporate bank account services;
  7. Marshall Islands company incorporation can be completed in 7 days and our client will not need to travel to complete the engagement;
  8. Company registration in Marshall Islands requires one shareholder, a minimum of only one director and one company secretary, who can be a natural person or a body corporate.
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Disadvantages of Marshall Islands company registration

  1. The Marshall Islands may be perceived as an offshore tax-haven;
  2. The Marshall Islands ranks poorly as the 106th least easy place to do business, according to the 2012 Doing Business Survey by the World Bank.
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Accounting and tax considerations

  1. There are no double taxation agreements signed by Marshall Islands;
  2. Marshall Islands companies are exempted from all income tax, dividends, interest, rents, royalties, and capital gains from the sale of company shares;
  3. There is no Marshall Islands personal income tax for employees, directors or shareholders of a Marshall Islands offshore company. However, personal income taxes of 8% are applicable to people employed in the Republic of the Marshall Islands.
Incorporation costs in Year 1 amount to US$1,850 and annual company costs in Year 2 and thereafter amount to US$1,050. The average fees per entity setup engagement amounts to US$7,430, including company incorporation, and corporate bank account. Refer to draft invoice embedded here.

Compliance considerations

    Marshall Islands business setup

  1. Since 2011, Australia and the Marshall Islands have signed an Tax Information Exchange Agreement (TIEA) on the exchange of information with regards to 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 taxpayers and the revenue authorities of Australia and the Marshall Islands and eliminate double taxation of certain income derived by retirees, government employees and students;
  2. The process of deregistering a company is dictated by the Government. This process will take a minimum of 6 months. Healy Consultants fee to project manage company de-registration is US$1450. During this 6 months period it is mandatory to maintain a resident company secretary and a legal registered office.

Corporate banking options


Marshall Island corporate banking

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Success tips when doing business in Marshall Islands

  1. Government agencies play an important role in doing business in Marshall Islands, like all countries. All businesses deal with government agencies on a regular basis, and foreigners setting up a business in Marshall Islands should exercise restraint and be patient as much as possible as authorities will always have the final say in any matter;
  2. As not all local Marshall Islands companies are well-versed with international trade, we encourage our Clients to consistently use and sign contracts of service with suppliers and counterparties;
  3. Your joint venture partner or Marshall Islands shareholder must not merely be a nominee for the sake of meeting the rules of foreign company incorporation. You should choose a partner that actually brings a lot to the table, including knowledge which would help Marshall Islands firm setup;
  4. When you’re starting a business in Marshall Islands it’s important to find out which of Marshall Islands registrations and licenses apply to your firm. This can be complex area, as different branches of the government will handle registration and licensing for various aspects of your Marshall Islands company formation.
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Did you know about Marshall Islands?

  1. The Marshall Islands consists of 1,156 individual islands but has a population of just 70,000;
  2. The Marshall Islands economy is predominantly based on Services, with some fishing and agriculture industry;
  3. The Marshall Islands has been a testing ground for US nuclear tests, during the 40′s and 50′s;
  4. A shark sanctuary of 2 million square km was declared by The Marshall Islands government in 2011;
  5. The US Dollar is the official currency for the Marshall Islands;
  6. For scuba divers the Marshall Islands is an excellent destination with clear blue water, more than 100 species of coral, hundreds of species of fish and numerous ship wrecks from World War II;
  7. Land is a focal point of Marshallese culture and customs.
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Useful links

External readings


Contact us

For additional information on Marshall Islands company formation, you can email us at email@healyconsultants.com or phone us at (+65) 6735 0120.