The best applications for the Marshall Islands IBC company
The Marshall Islands are highly geographically isolated, being situated in the middle of the Pacific Ocean, midway between the Philippines and Hawaii. The country has a population of about 66,000, and its inhabitants speak English as well as Marshallese. The Marshall Islands offers commercial and corporate services to non-resident companies and is a well-known and successful offshore financial centre. The Republic of the Marshall Islands (RMI) provides sustainable corporate programmes that have attracted thousands of international companies and holdings, such as limited liability companies (LLCs), partnerships and limited partnerships (LPs). The Marshall Islands Associations Law governs all non-resident business entities registered in the islands and is based on the corporate laws of the US state of Delaware.
Generally, companies registered in the Marshall Islands benefit from confidentiality protection with respect to international business partners, shareholders and corporate directors. The islands also provide businesses with tax advantages: tax-exemption for non-resident domestic corporations, limited liability for corporate directors and no statutory filing obligations. The Marshall Islands also ensures the protection of financial assets, with low share capital requirements and favourable asset management opportunities.
The international business company or international business corporation (IBC) is the company type most often used on the islands. IBCs operate and can be utilised as distinct legal entities, holding bank accounts and securities and participating in joint ventures, estate planning, asset protection, international trade, holding vessels and public offerings. There is no minimum authorised capital, no audit requirements and no exchange restrictions or residence requirements, and the jurisdiction also offers free domiciliation and flexibility with regard to the frequency of meetings.
The main benefit which IBCs provide is that they give business owners the ability to increase profitability and reduce liability at the same time. This is due to lower shareholders' liability in the event of a lawsuit or the loss of the business, which is limited to the total direct capital investment in the corporation by the individuals involved.
There are several requirements for IBC registration. At least one director, secretary and shareholder must be registered (they may be the same person); there must be a standard share capital of 500 shares without par value (with bearer shares permitted) or 50,000 shares with par value of USD 1.00 (about EUR 0.85); and the name of the company must end in Ltd, Corp, Inc or S.A. In general, establishing an IBC company makes it more convenient for the company owner(s) to:
- preserve anonymity while conducting unlimited business transactions
- bypass embargoes and international sanctions while doing business in other countries
- operate as a special purpose business entity while carrying out business operations
- consolidate intellectual property while licensing and franchising business entities
- conduct international trade using the professional services and investment management options available in the country
- protect the assets owned by the company's members
The Marshall Islands is a sound choice for modern international business, providing appealing business opportunities. There are several fields in which an IBC might operate which are considered to be particularly attractive for investment: international trade and finance, including banking, and the maritime industry. These sectors are good choices for international investors looking to set up a sustainable business offshore.
These areas offer both financial and legal benefits, such as nil taxation or lower tax rates, increased privacy with minimal risk of confidentiality issues, convenient access to deposits and shelter from financial, social and governmental unrest in the directors' home country.
If you are interested in incorporating an IBC in the Marshall Islands, contact us.