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Why Register an IBC in Marshall Islands

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Why Register an IBC in Marshall Islands

The Marshall Islands is an offshore jurisdiction that is suitable for some types of business operations while unsuitable for some other types.

An IBC in the Marshall Islands: What Business Purposes Does It Fit?

The Marshall Islands is a tiny but extremely beautiful country in Micronesia with a population of less than sixty thousand people.

It has been on the list of offshore countries for many years and we must admit that some other offshore countries enjoy a better reputation in the business world than the Marshall Islands do.

If you are considering the opportunity to register an offshore company, the jurisdiction might be not your first choice in some cases.

At the same time, registering an IBC (International Business Corporation) in the Marshall Islands can be a very good idea if you have certain specific purposes.

When the de-offshorization processes started, the Marshall Islands initially put up a fight against the huge and powerful organizations involved in these processes such as the OECD and FATF.

The islanders tried to retain the properties of their legislation that made the jurisdiction attractive for foreign investors.

Similarly to many other island states, the Marshall Islands is a comparatively poor country.

But how can a country with the population of only sixty thousand people resist the pressure from international agencies that are so dominant?

Thus, eventually, the Marshalls had to give in and adapt their corporate legislation to the contemporary international requirements.

This adaptation has allowed the island state to leave the black lists so today it is considered a ‘cooperating’ country.

That is to say, the jurisdiction is perfectly ‘clean’ in the eyes of the international business communities and regulating agencies.

Registering an IBC in the Marshall Islands would NOT suit certain types of business. If you are involved or if you are planning to get involved in banking, in insurance or reinsurance, the jurisdiction is not for you.

It is not going to be difficult to engage in these types of activities with your Marshalls-based company, it is going to be simply impossible to register an IBC for these purposes there.

Besides, if you would like to set up an offshore trust, you’d be better off opting for some other jurisdiction.

Finally, if you are engaged in any sort of gaming or gambling activities, including online gambling, do not choose the Marshall Islands. Go somewhere else, for example, to Gibraltar.

What types of business activities are suitable for registering an IBC in the Marshall Islands? First of all, the jurisdiction is highly popular with the owners of marine vessels of all types, be it merchant ships or ocean yachts.

The Marshalls is among the smallest countries of the world while its ship register is among the largest ones! More than 1,600 ships are registered in the country.

It goes without saying that their owners come from many different places. The Marshalls ship register is well-respected in the world and the system of related services that the locals provide to ship owners is superb.

You can also consider opening an IBC in the Marshall Islands if you are planning to eventually launch an IPO.

International investors are well aware of the fact that withdrawing from investments is not going to be a problem if the company whose shares they bought is registered in the Marshall Islands.

Obviously, this makes investing in it less risky, which turns it into a more inviting opportunity.

Around four hundred Marshalls-based companies have launched IPOs in recent years. So if you would like to raise some funds for your company by going public, you should seriously consider establishing an IBC in the Marshall Islands.

A company in the Marshalls can suit one more business area. Many entrepreneurs who do business solely online choose the jurisdiction to register their companies there.

The local legislation fits this type of business very well. Please keep in mind that this excludes online gambling.

What requirements would you have to meet if you chose to register a company in the Marshall Islands?

First, there are economic substance requirements: you have to have an office and a legal address in the Marshalls if you are to have a company in this jurisdiction.

We suggest that you should seek advice from specialists who provide offshore services on this matter as well as other matters related to registering a foreign company.

Second, your company shall have at least two officers – the director and the company secretary. Both natural persons and legal entities can act as company directors and secretaries in the Marshall Islands.

Please bear in mind, however, that if you would like to make a corporate entity your company director or secretary, more paperwork is going to be involved.

A natural person has to submit only a personal ID and proof of residential address if he or she is going to be the director/ secretary when applying for company registration.

If a legal entity is going to fulfill one (or both) of these roles, the entire set of corporate documents has to be submitted to the Registrar in the Marshalls.

Please note that the legislation of the country allows hiring nominee directors and secretaries.

This is an opportunity to keep the company owner’s identity concealed from the public.

But only from the public: you will have to reveal to the Registrar the real names of all beneficiary company owners when you register an IBC in the Marshall islands.

Finally, there are no requirements as to the Marshalls-based IBC charter capital. You can make it as small as US$ 1.

As you can see, the Marshalls can suit some business purposes if you register a company there and the country is unsuitable for some other business purposes.

Simply keep the Marshall Islands on your radar and investigate other offshore opportunities. These are not as plentiful as they used to be before but you can still find some business benefits if you go offshore.

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