Annual economic substance reporting obligations met
Background
Our client, based in Canada, runs a pharmaceutical distribution company incorporated in the Marshall Islands. It was incorporated in 2012 and has been dormant and not generated any forms of income since.
In the third quarter of 2021, our Client engaged Healy Consultants Group for our Marshall Islands annual company renewal services, including i) economic substance 2021 report filing for a dormant entity to be submitted to the International Registries ii) company secretary and legal registered office and iii) the settlement of the annual corporation maintenance fee to the Trust Company of the Marshall Islands, Inc.
Engagement Planning
- In the third quarter of 2021 our Client settled our renewal fees.
- Within a week, this engagement was assigned to Elmira, our in-house accounting and tax expert based in Singapore.
- Elmira verified all economic substance reporting obligations for this Client and informed the Client about all upcoming deadlines, as well as the main milestones of this engagement to clearly define an action plan for the upcoming months and set Client expectations.
Economic Substance Reporting Obligations
- Firstly, Elmira verified and confirmed with our Client via email that the company was dormant during the financial period.
- Upon confirmation of the dormancy, Elmira adjusted list of mandatory filings applicable for our Client’s business.
- Thereafter, she prepared a draft economic substance reporting filing form, which was sent to our Client for their review and approval.
- Within 24 hours of receipt of confirmation from the Client, Elmira submitted the economic substance filing to the International Registries on 1 October 2021 and sent confirmation of the same to the Client.
- At the same time, Elmira settled the annual corporation renewal fee with the Marshall Islands Registrar.
- On 2 October 2021, International Registries successfully issued the Certificate of Economic Substance Reporting Compliance to our Client and proof of annual corporation renewal fees payment.
Engagement completion
- Our team sent an email to our Client on 6 October 2021, summarizing all legal, compliance, and economic substance reporting obligations for the financial year end 2021, and confirming completion of the same. The email included proof of the economic substance filings from the government and proof of payment to the Trust Company of Marshall Islands, Inc., confirming completion of the same.
- Healy Consultants Group asked our Client for a online professional reference.
