The Republic of Marshall Islands (RMI) is situated between Indonesia and Hawaii, west of the International Date Line and north of the Equator. It is the easternmost island group in Micronesia and it covers an approximate of 2 million sq km in the Central Pacific Ocean with two 1,280 km long parallel chains of atolls and volcanic islands separated by 179 km of sea. The islands achieved freedom in 1986 Compact of Free Association with the United States.
RMI works with professional incorporation services companies to legally process the license of incorporation of all non-resident companies. The common requirements for incorporation should be outlined in the standard Articles of Incorporation, among which are corporate name, number of authorized shares, classification of whether shares have par or no par value and identification for whether shares are to be in the bearer and/or registered form. If a non standard Articles of Incorporation will be presented, it is important that it should be in accordance with the Marshall Islands Business Corporation Act (BCA).
The following requirements should be noted and complied for an efficient processing of Marshall Islands Incorporation:
Authorized and Issued Share Capital The standard authorized share capital is 500 shares without par value or a capital with a declared par value of up to US$50,000.
Types of Shares Permitted Types of shares available for Marshall Islands Incorporation are registered shares, preference shares, redeemable shares, shares with or without par value and shares with or without voting rights.
Taxation Nonresident companies are legally exempted from taxes.
Absence of Double Taxation Agreements
License Fees A maintenance fee is required from every company.
Financial Statement Requirements Filing financial statements is not obliged, but companies are advised to secure financial records for easy assessment and identification of companys financial status.
Directors There is no limit for the number of directors. A combination of local and foreign directors or full 100% foreign directors are both allowed.
Company Secretary A resident or foreign company secretary can be appointed.
Shareholders A minimum of one shareholder is required for Marshall Islands Incorporation.
Lastly, Marshall Islands Incorporation should always abide in Marshall Islands Business Corporations Act under the Marshall Islands Associations Law which was patterned on the corporate laws of Delaware and New York and modified to consider the important features of an offshore jurisdiction. Marshall Islands BCA provides a list of other provisions necessary in corporate activities, operations and administration.