Why Incorporate in the Republic of Marshall Islands

Viewpoints > Viewpoints from Kaizen > Offshore Company > Why Incorporate in the Republic of Marshall Islands

The Republic of Marshall Islands offshore companies, such as Non-Resident Domestic Corporations (or International Business Companies, “IBCs”), are essential to commercial life; a business person that never used an NRDCs or IBCs has probably not received quality professional advice. It is also important for thousands continuing to use IBCs to make sure that some things don’t change. There are important elements to determine the usefulness of the NRDC / IBC and worthiness of its origin: Political stability in the selected jurisdiction; communications network; availability of professional and technical support; reputable track record of the jurisdiction; and compliance with international standards, especially the Republic of Marshall Islands is one of those jurisdictions.

FLEXIBILITY 

Jurisdiction at the Republic of Marshall Islands “RMI” offers the possibility to form offshore companies with either registered, bearer shares, or both. Most jurisdictions have abolished this possibility and others, might as well have. In addition, a NRDC in the Republic of Marshall Islands is normally filed with the Articles of Incorporation (like Memorandum of Articles in the English system company), but the by-laws (i.e. the Articles of Association in the English system company) are not normally filed (unless stated otherwise), which give clients the flexibility to amend it without undergoing the filing procedures of the amended by-laws.

QUALITY IFS PROVIDERS 

When introducing a jurisdiction, one of the major concerns is the availability of sound professional resources. Many jurisdictions cannot offer basic services such as professional audits etc.. Knowledgeable IFS providers with FCCA staff, like us, know best when a company should keep bearer shares and when it is most appropriate to register them, or to use nominee shareholder or corporate director. Our professional staff ensures proper procedure is followed.

FAMILIARITY 

The corporate law of the Republic of Marshall Islands is based on the corporate law of the state of Delaware and is therefore familiar to persons accustomed to US corporations.

SPEED

 In general, a NRDC is incorporated in one working day, but the whole set of documents will be ready in about one week time. If time is critical, client may subscribe our expressed incorporation services for NRDC in the Marshall Islands (provided that all required information, identification proof, and required fees are cleared in our bank account), we could deliver all corporate documents (except common seal and pre-inked chop) to client at the 3rd working day (excluding holidays, Saturday and Sunday) and hence, client is ready to sign all documents and meet at the banker in Hong Kong for bank account opening at the 3rd working day. (If client is not available in Hong Kong for signatures, the required documents to be signed are ready to despatched to overseas for signatures at the 3rd working day). If apostilled documents are required, client may subscribe express apostillation services at the same time of incorporation, it is also ready at the 3rd working day.

In short, a Marshall Islands Company provides the following benefits:

  • Limited liability for corporate directors
  • Minimization of tax liabilities
  • No statutory filing obligations
  • A politically stable jurisdiction
  • Access to open corporate bank accounts in Hong Kong, Singapore and Shanghai
  • No required disclosure or filing of shareholders or directors for confidentiality of beneficial owners
  • Low share capital requirements
  • The ability to hold directors/shareholders meetings anywhere in the world
  • The absence of requirements for audit and accounting records

CHARACTERISTICS 

Marshall Islands NRDC (IBC) is having following characteristics, which are having advantages over other jurisdictions:

  • Confidentiality surpassing that available in most jurisdictions
  • No disclosure of beneficial owners
  • All non-resident Marshall Islands entities are statutorily exempt from corporate taxes
  • Neutral domicile for parties of different citizenship
  • Company name registered with Chinese allowed
  • Minimum number of directors being ONE
  • Minimum number of shareholders being ONE
  • Simple maintenance: No annual filing (except annual resolution for the re-election or appointment of director)
  • No requirement of annual audit
  • Bearer shares allowed
  • Flexibility to file by-laws
  • Familiarity with corporate law (with U.S. based)

 

;