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Marshall Islands

Limited Liability Company

The Marshall Islands’ Limited Liability Companies Act was enacted in 1996 adopting the model of Delaware LLC. A Marshall Islands LLC is a flexible entity that allows to form its structure according to its operating agreement, rather than dictated by rigid legal statutory mandates.

The LLC is a hybrid of both partnership and corporate structures, protecting LLC members from the debts incurred by the entity and separating the rights of its members and that of the LLC.

An LLC requires minimal corporate formation requirements and a fast registration procedure. There may be incorporated as a single-member LLCs, and there are no company structure requirements for its management, nor are there provisions for company meetings, directors, secretary, or capital. Its operating agreement may be arranged by its members according to their needs.

Members pay personal income taxes in their country of residence on LLC profits proportionally to their share of participation in the LLC company, whether distributed or not.

It is important to note that certain countries do not recognize the pass-through status of an LLC, if the LLC is deemed to be tax resident in one of such countries, it may be subject to corporate income tax.

Besides the aforementioned structuring flexibility, Marshall Islands’ LLCs benefits from confidentiality, no reporting requirements, and local tax-exemption if the business is conducted outside the jurisdiction.

The Republic of the Marshall Islands passed in late 2018 the Associations Law (Amendment) Act, 2018 which amends and introduces certain provisions to the Business Corporation Act, the Revised Partnership Act, the Limited Partnership Act, and the Limited Liability Company Act.

The Associations Law (Amendment) has introduced a requirement to non-resident domestic entities (offshore companies) that provide financial services which would be regulated under the Banking Act (financial services providers) if the activities were carried out within the Marshall Islands – to be regulated by the relevant authority and fulfill licensing requirements of the jurisdiction in which the Marshall Islands company is carrying out activities.

In addition, it grants the power to the Registrar of Corporations to implement economic substance requirements and certain reporting requirements for offshore companies. We can expect further economic substance regulations to be enacted shortly, in line with those of other offshore jurisdictions.

The Marshall Islands has implemented the OECD’s automatic exchange of information for tax purposes (AEoI) through the Common Reporting Standard (CRS).

The Marshall Islands LLC is an excellent entity for movable and immovable assets holding and asset protection.

Taxes

Corporate income tax – A Marshall Islands LLC is a tax transparent entity, which means that any profits are passed through to the members to be reported as personal income. There are no taxes, exchange controls or fees on assets or income originating outside of Marshall Islands, provided that LLC’s members are not Marshall Islands’ residents.

Other taxes – Resident companies are required to withhold and pay to the National Government a tax imposed on the Marshall Islands resident employee's wages and salaries.

The wages and salaries tax is 8% per annum on the first US$10,400 of taxable income earned by the employee, and 12% thereafter.

Employees whose gross annual wages and salaries are US$5,200 or less are allowed an exemption of US$1,040 per year (or US$20 per week).

There are no property, wealth and inheritance taxes in the Marshall Islands.

  • Tax transparent entity
  • Offshore Income Tax Exemption
  • Offshore capital gains tax exemption
  • Offshore dividends tax exemption
  • CFC Rules
  • Thin Capitalisation Rules
  • Patent Box
  • Tax Incentives & Credits
  • Property Tax
  • Wealth tax
  • Estate inheritance tax
  • Transfer tax
  • Capital duties
  • 0% Offshore Income Tax Rate
  • 0% Capital Gains Tax Rate
  • 0% Dividends Received
  • 0% Dividends Withholding Tax Rate
  • 0% Interests Withholding Tax Rate
  • 0% Royalties Withholding Tax Rate
  • 0 Losses carryback (years)
  • 0 Losses carryforward (years)
  • 7% Social Security Employee
  • 7% Social Security Employer
  • 12% Personal Income Tax Rate
  • 4% VAT Rate
  • 14 Tax Treaties

Country details

Marshall Islands
USD
Majuro
Oceania
m h , e n - M H
65859

The Republic of the Marshall Islands is an island state located in the Pacific Ocean, in the Micronesia region. The country spreads over 29 atolls of coral, comprising 1,156 islands and islets.

The islands share maritime borders with the Federated States of Micronesia to the west, Wake Island to the north, Kiribati to the southeast and Nauru to the south. The population of the country is about 50,000 people. The capital and the most populated city is Majuro, with about 28,000 inhabitants.

After being under the mandate of the Spanish, the German, the English, the Japanese and being part of the UN’s Trust Territory of the Pacific Islands and under the administration of the United States, the nation gained its independence in 1990 and is one of the youngest states in Oceania.

Its official languages are English and Marshallese. Its official currency is the United States Dollar (USD).

The Marshall Islands government operates under a mixed parliamentary-presidential. Elections are convened every four years under universal suffrage (for all citizens over the age of 18).

Natural resources on the mainland include phosphate deposits as well as copra harvesting. Agricultural production is concentrated in small farms and the most important commercial crops are coconuts, tomatoes, melons, and the bread tree. There is small but intensive agriculture of copra, coconut, sweet potato and banana.

Livestock is restricted (due to the small extent) to the breeding of pigs, poultry, to a lesser extent cattle and goats. Obviously, fishing is very important although the seas are warm and not very prolific.

The industry is mainly that of copra, coconut oil, frozen fish for export, handicrafts. The aid of the United States government is the main pillar of the economy. The small-scale industry is limited to handicrafts, the processing of fish and copra.

Tourism has been emerging in recent years as a major source of income for the islands. The islands have few natural resources and imports far outnumber exports. Despite the relative scarcity of natural resources in their lands, the Marshall Islands have jurisdictional waters that are not well exploited due to the scarcity of capital.

The issue of postage stamps, mainly for philatelic collecting, is also an important source of income for its economy.

In recent years the country has developed a prolific wholesale and retail trade sector in the major urban areas, as well as a growing financial sector including banking and insurance services.

Tax treaties

Country Type Date Signed
Faroe Islands TIEA 2010-09-28
Iceland TIEA 2010-09-28
Greenland TIEA 2010-09-28
Netherlands TIEA 2010-05-14
Norway TIEA 2010-09-28
New Zealand TIEA 2010-08-04
Korea, Republic of TIEA 2011-05-31
Australia TIEA 2010-05-12
United States TIEA 1991-03-14
Finland TIEA 2010-09-28
United Kingdom TIEA 2012-03-20
Sweden TIEA 2010-09-28
Ireland TIEA 2010-09-02
Denmark TIEA 2010-09-28

Tax treaties Map

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Services

We can help you incorporate a Limited Liability Company in Marshall Islands for $3,100.


Description


Marshall Islands Non-Resident Domestic Company (NRDC) – USD 3,100.00 (All included)


We pride ourselves in providing the best possible professional service which includes our honest hassle-free “No Hidden Fee” policy. Your incorporation package includes:



  • All Applicable Registration and Government Fees

  • Certificate of Incorporation

  • Memorandum & Articles of Association

  • Appointment of Company Director(s)

  • Director(s) Acceptance Letter

  • First Board Resolution

  • Register of Members

  • Register of Directors

  • Share Certificate(s)

  • Registered Office & Registered Agent Service including all fees for the calendar year

  • Corporate Documents’ Courier Delivery


Marshall Islands Limited Liability Company (LLC) Formation – USD 3,100.00 (All included)



  • All Applicable Registration and Government Fees

  • Certificate of Organization

  • Articles of Organization

  • Appointment of the First Manager(s)

  • Register of Managers

  • Register of Capital Contributions

  • Certificate(s) of Ownership

  • LLC Operating Agreement

  • Registered Office & Registered Agent Service including all fees for the calendar year

  • Corporate Documents’ Courier Delivery


Time to form: 1 week.


All our incorporation services include a yearly consulting session, a dedicated account manager and access to our global network of trusted business services, including introductions to accountants, financial, tax and legal advisors at no cost.


Bank Account Opening Support Services (Optional)


Bank Account Options*:



  • Offshore Bank Account** (Remotely) – USD 300.00

  • Mauritius Bank Account (Remotely) – USD 600.00

  • Curaçao Bank Account (Remotely) – USD 500.00

  • Cayman Islands Bank Account (Remotely) – USD 900.00

  • Armenia Bank Account (Remotely) – USD 1,200.00

  • Cook Islands Bank Account (Remotely) – USD 600.00


For Private Wealth Structures, we have further options available in large financial centers. Please contact us for more information.


*This accounts’ schedule of fees are for trading, service and holding companies whose activities are not regulated and are considered low-risk by financial industry standards. If you conduct regulated activities such as financial services or gaming, or you operate in a high-risk industry such as cryptocurrencies, precious metals, adult, dating. Please also contact us for more information relating to these industries.


**Offshore Bank Accounts: Belize, Puerto Rico, Nevis, Antigua, Saint Lucia.  Other bank account options may be available depending on business profile and turnover.


Our Bank Account Opening Support Service includes:



  • Introduction to the Bank Manager

  • Bank Account Opening Process Management

  • Assistance and advice in filling out Business Questionnaires, KYC Forms and Bank Account Application Forms.

  • Certified Copies of Constitutional Documents

  • Corporate Seal


Our banking service is not just a mere introduction to the bank. We assist you in filling out the business plan forms appropriately and help you understand and provide business details, commercial information and purpose/use of the bank account that a given bank wants to know in order to approve your account application.


Banks want certainty and clarity on how the account will be used. Everything must be watertight. We will work with you to make sure there is minimal ‘back and forth’ and a smooth account opening process


Annual Fees (2nd year) – USD 1,900.00


Including:



  • Government Fee

  • Registered Agent

  • Registered Office Fee





Click here to incorporate your Marshall Islands LLC.

Incorporate now

Disclaimer

Although we use our best efforts to keep the information of this site accurate and up-to-date, we make no representations or warranties with respect to the accuracy, applicability, fitness, or completeness of the contents of this website. We disclaim any warranties expressed or implied, merchantability, or fitness for any particular purpose. We shall in no event be held liable for any loss or other damages, including but not limited to special, incidental, consequential, or other damages. The contents of this website are just for illustrative purposes and are NOT to be considered as a legal opinion or tax advice and should not be relied upon as such. Far Horizon Capital Inc., and any associated company, is not engaged in the practice of law or tax. If you wish to receive a legal opinion or tax advice on the matter(s) in this website please contact our offices and we will refer you to an appropriate legal practitioner. Use of our websites FlagTheory.com, Incorporations.io, Residencies.io, Passports.io, is subject to our terms and conditions.

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