The Republic of the Marshall Islands is currently known for its economical strengths: its geographical location, lax taxation policies, and cheap workforce. The island nation achieved levels of economic prosperity that seemed attainable even a few years ago. The thing that attracts foreign investment the most is, of course, its relatively high GDP per capita. While this alone can be an extremely attractive sign, it is not the only attribute that catches the eyes of entrepreneurs and investors.
Marshall Island is a very attractive jurisdiction for those that want to pay low taxes on income and capital gains. The fees for company registration in Marshall Islands are also very low, which is yet another thing that makes the island nation a good investment destination. This market is growing fast and is becoming more and more popular with start-ups, entrepreneurs, and businesses worldwide.
How Long Will It Take to Register a Company in the Marshall Islands?
Once all the paperwork is taken care of and submitted in a timely fashion, the company will then have to wait approximately five business days to receive the state-granted license. Upon receipt of the license, the company will then have a pass to carry out business operations within the jurisdiction.
How to Open a Bank Account in the Marshall Islands for a Legal Entity?
At the time of writing, there are two major banks operating in the island nation: The Bank of Guam (“The People’s Bank”) and the Bank of the Marshall Islands (“The Marshallese Bank”). The requirements for opening a bank account in the Republic of the Marshall Islands are very straightforward.
Usually, there’s a necessitated face-to-face meeting with a bank representative, but it can be carried out by a power of attorney. These are the documents that have to be presented to the Bank:
- a copy of your passport or a copy of your identification card;
- a proof of residence, namely a utility bill, a rental contract, or lease agreement;
- a proof of source of funds.
There might be additional requirements, depending on the situation, but the above-mentioned are the most essential. All paperwork must be submitted in English or supplemented by a notarized translation into English.
How Did Marshall Islands Become a Hub for Entrepreneurs?
A combination of factors resulted in this nation becoming a hub for entrepreneurs. Currently, the most attractive qualities of this jurisdiction are as follows:
- No obligations to report inner corporate information;
- Foreign exchange control is not a hindrance for any of the companies;
- Close proximity to the United States of America;
- Flexible legal structure for the companies;
- Much ease for opening a business.
What Organizational / Legal Things to Consider Before Even Starting a Company in the Marshall Islands?
There exist several peculiarities of starting and operating a business in the Marshall Islands. Below, you will find a few examples that might affect a would-be Marshallese entrepreneur’s entry into the thriving, tax-free jurisdiction:
- Number of directors and stakeholders must be >1 person.
- A company must have at least one secretary;
- Issuance of bearer shares is allowed;
- Issuance of shares is allowed with no limit in the number of shares;
- The only piece of information that can be obtained by 3rd parties is the name of the company;
- A company can seek banking services from international banks;
- A company name must be a unique one;
- A company has to have a physical presence on the territory of the Marshall Islands.
Why Is It So Easy to Do Business in Marshall Islands?
A growing number of digital nomads, investors, businesses, and start-ups select incorporation in the Marshall Islands due to the straightforwardness of the process of setting up a company in this island nation. Once the business is ready to start operating, it becomes very much apparent that the Marshall Islands offer low tax rates, low operating costs, and excellent return on investment.
High levels of corporate confidentiality, cheap workforce, and a whole myriad of other positive factors are the key reasons why it’s so easy to not only create, but also operate a business out of the Marshall Islands.
Why Do People Choose Marshall Islands for Starting A Company?
The low costs for business start-ups combined with the lack of tax payments and/or harsh labor laws put the Marshall Islands on the frontline of the war on financial instability. There exists a plethora of reasons why people select this jurisdiction as their base of operations. For instance, no company is required to pay taxes. If that alone isn’t enough to sway your opinion, then how about the fact that it’s VERY easy to incorporate and run a company within this jurisdiction? If you’re thinking about running a business from this location, you don’t have to worry about any cumbersome paperwork as it can be handled by a group of lawyers or a single representative working on your behalf. Most of the other hindrances, annoyances, and disadvantages encountered in other, similar jurisdictions are simply non-existent in Marshall Islands!
Is a VAT Number Necessary in Marshall Islands?
Offshore businesses that do not conduct corporate dealings within the local economy are not subject to VAT. This means that certain corporate activities are not taxed at all. The fact that a VAT number is not required for a new business in the Marshall Islands is an important factor for driving business growth within the nation.