Offshore International Business Corporation (IBC) in the Marshall Islands

The Marshall Islands are not a one-size-fits-all jurisdiction for offshore business, but for the right business, it offers some significant advantages. Registration of an offshore IBC in the Marshall Islands can, in fact, be very profitable, securing long-term wealth for you.

We don’t believe in cookie-cutter solutions for our clients. If you’re considering registering a company, we weigh up the pros and cons of offshore registration in the Marshall Islands and other jurisdictions to give you the best option for your goals.

Let’s explore whether this offshore jurisdiction is best suited for your business. 

Who should not consider the Marshall Islands for offshore registration?

We do not recommend the Marshall Islands if you intend to open a bank or trust or are involved in insurance or reinsurance. In these instances, an offshore IBC will not be able to provide much to you, meet regulatory requirements, or be registered at all. In addition, if your operations relate to gambling, the Marshall Islands are immediately off the table for you.

You also have to consider the relationship of the Marshall Islands with the USA. The Marshall Islands, though a sovereign state, has a free association with the USA, depends on the USA for defense, and cannot engage in political acts against the USA’s interests. The country does not disclose the data on owners recorded in the Marshall Islands register of companies. However, an offshore company with such a close relationship with the United States is not suitable for everyone. Consequently, if confidentiality and anonymity are among your main objectives, this jurisdiction should not be considered a priority option.

A Business Company in the Marshall Islands is an Optimal Choice, But Not for Everyone

So, for whom is this a good jurisdiction? The Marshall Islands are especially well-suited for registering a company that will later own seagoing yachts and ships registered there. The ship register of this tiny and sparsely populated state is one of the largest globally (with more than 1,600 merchant ships from all over the world!). In this sense, it is a well-known and respected jurisdiction with an excellent system of services.

In addition, an offshore company in the Marshall Islands is ideal for international trade in physical goods and providing various services. Fully online companies registered in the Marshall Islands also have many opportunities.

One particular case where it is logical to register an offshore IBC in the Marshall Islands is if you plan to complete the IPO procedure and bring your company to the world’s most prestigious exchanges (for example, the ones in New York, London, and Singapore).

Why? Because the legal and structural framework of the Marshall Islands aligns well with the stringent requirements involved in preparing for an IPO. Your company will still need to undergo a thorough audit, but this jurisdiction has proven it can support that level of scrutiny. In fact, around 40 Marshall Islands–registered companies have already gone public successfully. Could yours be next?

In any case, if you are developing a startup (an IBC in our case) with several rounds of investments, registering a company in the Marshall Islands can offer an additional advantage in the eyes of potential investors. That is because it offers clear, flexible structures that allow them to exit the project with a strong return on investment. 

Effectively, Marshall Islands offshore registration for your IBC will definitely entice more investment when an experienced venture capitalist assesses your project. This is especially true if you have a well-developed financial plan, covering the whole process up to the IPO stage. If this sounds like you, registering an IBC in the Marshall Islands will be an extremely profitable option that is worth analyzing.

Registration of an Offshore Company in the Marshall Islands is the Right Choice for Serious Business!

The laws governing the registration (incorporation) and actual business conducted by offshore IBCs/LLCs/LPs (limited partnerships) are largely similar to those in the American state of Delaware. It is often (and not without reason!) called the main offshore of the United States, as the process of doing business and registration is easy, and there are good prospects for further development.

While this article focuses only on the registration of an offshore IBC and related aspects, you can contact our experts and ask any additional questions related to business operations in an individual session. IBC registration in the Marshall Islands is a great solution if you need to make sure that you can easily sell a part of your offshore company in the future.

The most important aspects:

• The management structure of an offshore IBC in the Marshall Islands requires at least two positions: a director and a secretary.
• The functions of the corporation’s director and secretary may be performed by both natural and legal persons.
• The Marshall Islands formally allow the use of a nominee service. So, if you do not want to be in the public eye, you can hire a nominee director and a secretary (this option is not included in our standard package of services).
• The positions of director and secretary can be combined (with the actual status of a beneficial owner as well) to optimize the budget of the offshore IBC.

We would like to draw your attention to the fact that the Marshall Islands have been excluded from the European Union’s “non-cooperative list” since 2023. This is due to improvements in relation to tax transparency, fair taxation, and the implementation of OECD requirements. Thanks to this, the reputation of the country and offshore IBCs has significantly improved and immediately attracted the attention of new entrepreneurs.

Name and Share Capital of an Offshore IBC

Corporate law does not impose special requirements or unrealistic conditions. The name of the offshore company can be registered in any language—the main condition is the use of the Latin alphabet. We recommend preparing several alternative names to avoid any problems during IBC registration in the Marshall Islands.

Other things to be considered:

• The name of the offshore IBC in the Marshall Islands can (optionally) contain absolutely any standard corporate suffixes, such as Limited, Ltd., A.G., Corporation, Corp, S.A., Incorporated, Inc., etc.
• It is prohibited to use the following words in the name: Bank, Insurance, Assurance, Re-Insurance, Trust, Foundation, Charity.

Once you have selected a name for your IBC, we will check it with the register. If everything is acceptable, we can proceed to the next phase of business registration in the Marshall Islands, which involves the calculation of the share capital structure.

Here are more details on the share capital:

• The IBC’s share capital in the Marshall Islands can be of any size.
• You can nominate the share capital in any currency.
• If the number of shares without par value exceeds 500 or the amount of share capital exceeds 50,000 USD, a small one-time tax will be levied when the IBC is registered.
• The typical share capital of an offshore company in the Marshall Islands does not exceed 50,000 USD (see above).
• At the stage of IBC incorporation, you can just pay a symbolic share of capital equaling 1 USD.

Document Package

It is standard for almost any offshore jurisdiction, not just the Marshall Islands.

Here are the documents required to register a company:

• Notarized copies of the passports of IBC/partnership founders
• Proof of residence (e.g., copies of paid utility bills). This document should not be older than 2 months, and translation into English is mandatory.
• If the positions of director/shareholder are entrusted to legal entities, additional registration documents will be required (our experts can provide a standard or a full list).

Other aspects to be considered:

• Information on beneficial owners should be provided at the registration agent’s first request or on the basis of a formal government request.
• Annual certification is mandatory for new and registered IBCs in the Marshall Islands.
• The lists of directors, beneficial owners, managers, as well as other persons associated with the company’s offshore business are subject to checks.
• If violations are found, a fine will be imposed on the company (up to 50,000 USD), and the company will be forcibly liquidated in extreme cases (even if it was registered without claims from the regulator).
• There are stringent requirements from the OECD related to AML policies that you must abide by.
• The use of bearer shares in the Marshall Islands is becoming increasingly transparent (a register of owners is maintained).

The Cost of Incorporating an Offshore IBC in the Marshall Islands, Additional Costs

The amount indicated at the very top of this page (3285 USD) is a basic one, while the actual cost of services can be both lower and higher in your case. It all depends on:

• Your requirements for an offshore IBC in the Marshall Islands;
• Your specific business area;
• Your residency/tax status;
• The volume of selected additional services;
• If you require a nominee service.

If your budget is limited, ask our experts to prepare the most affordable offer to suit your specific needs.

The basic package of services (3285 USD paid at the stage of service contract conclusion, which allows you to register an offshore company and avoid significant additional costs) includes:

• Registration of an offshore IBC in the Marshall Islands
• All applicable state duties
• Registered agent’s services
• Registered office (legal address)
• A set of original corporate documents
• Worldwide courier delivery

Services related to the annual extension of the offshore IBC in the Marshall Islands (2,259 USD in total; you can register the company and pay for 1 year or more):

• State renewal fee
• Registered agent in the Marshall Islands
• Registered office (legal address)

These are the documents handed over to you after we register an IBC in the Marshall Islands (free of charge, included in the service cost):

• Certificate of Incorporation
• Endorsement Certificate
• Power of Attorney
• Articles of Incorporation
• The consent of the Registrar to the appointment of a director
• Accepted standard Articles of Association (optional)
• Service fee (for the first year)

Free advice on selecting a bank account:

• Foreign/offshore personal account.
• Foreign payment system for opening an account.
• Foreign corporate/personal account.

The cost of additional services associated with offshore IBC registration in the Marshall Islands:

Cost of additional services

A set of copies of documents with an apostille	$1,900
Amended Articles of Association (plus additional capitalization tax, if applicable** Capitalization tax applies to corporations whose share capital exceeds five hundred (500) shares with no par value or with a total par value of more than USD 50,000 or its equivalent)	$1,200
Amended and Restated Articles of Association for BC	$1,625
Merger Agreement for BC	$900
Certificate of Conformity for BC	$1,500
Registered Protocol for BC, LLC, LP, GP	$750
Registered Articles of Association for BC	$750
Registered Power of Attorney for BC	$500
Certificate of Dissolution for BC	$600
Withdrawal of voluntary dissolution for BC	$2,250
Certificate of Appointment of Directors and Officers for BC	$900
Certificate of Appointment of Directors and Officers (apostilled) for BC	$1,400
Declaration of Shareholders and Beneficial Owners of Bearer Shares for BC	$1,200
Certificate of Authorization for BC, LLC (without apostille)	$900
Certificate of Authorization for BC, LLC (with apostille)	$1,400
Certificate of Good Standing (original) for BC, LLC, LP, GP (without apostille)	$750
Certificate of Good Standing (original) for BC, LLC, LP, GP (with apostille)	$1,250
Certificate of Registration for BC	$750
Certified copy of the registered document for BC, LLC, LP, GP	$700
Registered Articles of Association for BC	$800
Registered Protocol for BC	$800
Articles of Domestication for BC	$1,500
Certificate of Domicile Transfer to Another Jurisdiction for BC	$2,500
Registered Power of Attorney for BC	$700
Certificate of Amendment for LLC	$1,200
Certificate of Conversion for LLC	$1,500
Certificate of Cancellation for LLC	$1,000
Registered Operating Agreement for LLC	$750
Certificate of Domicile for LLC	$1,500
Certificate of Amendment for LP, GP	$1,200
Certificate Cancellation for LP	$1,000
Certificate of Dissolution for GP	$900
Apostille	$500
Financial report (up to 40 transactions per year)	$2,400
Financial report (41 to 150 transactions per year)	$4,500
Financial report (more than 150 transactions per year)	upon request
Virtual Office in Panama /per year • Address • Mail/Delivery to courier • Telephone with message recording function	$3,000
Professional director service	$3,400 + expenses

As laws in many countries (including the EU) are being amended, requirements for customers’ data protection are becoming stricter and stricter. Transferring data for registration of an offshore IBC in the Marshall Islands requires filling out a form of consent to personal data processing: date of birth, ID number, marital status, etc.

This form remains valid for 5 years, which means that no additional permits will be required during this time. You have the right to withdraw your consent to personal data processing at any time, but in this case, some services will become unavailable.

If you still have questions related to IBC registration in the Marshall Islands, feel free to contact us. If you need any additional services related to a company registered in the Marshall Islands (even if we did not register it!), from opening an account with an offshore bank to registering ships or yachts in its name, do not hesitate to reach out!

When it comes to consultations with our team, you have two options. You can have a complimentary, fifteen-minute consultation regarding company formation, ideal if you want to get started or learn about our service, or a one-hour consultation for 300 Euros, currently, normally 500, with an expert, if you want to dive deeper.