Marshall Islands Company formation

Excellent international communications on Majuro and Ebeye are provided by satellite links for telephone, fax and telex. Presently, there are two major Pacific region banks, as well as the Bank of the Marshall Islands - all on Majuro.

An important industry is large-scale commercial fishing. Japanese fishermen, who are licensed to fish Marshallese waters, haul in roughly 42 million pounds of tuna and billfish each year. The export of coconuts (copra) is another important economic factor.

The Marshall Islands has a rapidly growing ship registry, increasing by over 50% between 1994 and 1995. Vessel types include oil tankers, bulk carriers, container ships and fishing vessels.

The Marshall Islands only recently began to be viewed as a tourist destination. For environmental reasons, controlled tourism is the watch-word, whether on Majuro or on the outer atolls, the lagoons and the ocean offer snorkelling, scuba diving, sport-fishing and sailing.

Language
Languages spoken are Marshallese and English.

Currency
US Dollar.

Exchange Control
None.

Type of Law
Common Law based on Anglo/American Common Law.

Principal Corporate Legislation
The Associations Law of the Republic of the Marshall Islands 1990, which incorporates the Business Corporation Act (BCA) and the Partnership Act.

Registered Office Required
Yes, must be maintained in the Marshall Islands at the address of the licensed Trust and Management Company.
Timescale
One day, but a further three to four working days is required for delivery of documentation from the registry.

Company Name
Company name cannot be identical or similar to an existing company. The following words or their derivatives may not be used: bank, chartered, establishment, foundation, insurance, partnership or trust.

Can be in any language as long as Roman letters are used. The Registrar may however require an English translation if a foreign language is used to ensure that the proposed name is not a restricted name.

Any standard corporate suffix or its abbreviation, for example: Corporation, Incorporated, Limited, Gesellschaft mit beshrankter Haftung, Aktiengesellschaft, Societe Anonyme, Sociedad Anonima.

Disclosure of Beneficial Ownership
No.

Authorised and Issued Share Capital
The standard authorised share capital is US$50,000 divided into 50,000 shares of US$1 each. The minimum issued share capital is one share of US$1.

Marshall Islands' corporations may have registered shares, bearer shares, preference shares, redeemable shares, shares with or without par value and shares with or without voting rights.

Taxation
The Marshall Islands statutorily exempts non-resident companies from paying any taxes.

Double Taxation Agreements
None.

Licence Fee
Annual licence fee of USD150.

Financial Statements Requirements
There is no requirement to file financial statements, but records should be maintained to reflect a company's financial status.

Directors
The minimum number of director(s) is one. The director(s) may be natural persons or body corporate(s). The director(s) can be of any nationality and need not be Marshall Islands residents. No details of the director(s) appear on the public registry and the particulars of the director(s) are not available to the public's inspection.

Company Secretary
The appointment of a company secretary is optional. The company secretary can be of any nationality and need not be resident in the Marshall Islands.

Shareholders
The minimum number of shareholder(s) is one. The shareholder can be a body corporate or individual and can be of any nationality. No details of the shareholder(s) appear on the public registry and the particulars of the shareholder(s) are not available to the public's inspection.