The Marshall Islands is a top destination for offshore company formation, offering flexibility, privacy, and minimal compliance requirements. With no residency mandates for directors and strong confidentiality protections, it provides a streamlined governance framework. Learn why it’s an ideal choice for international businesses.
Directors and Officers
- Number and Residency: A minimum of one director is required, who can be of any nationality and need not reside in the Marshall Islands. Corporate directors are permitted, offering flexibility in management structures.
- Duties: Directors and officers are expected to act in good faith, with due diligence and care, prioritizing the company’s best interests. They must avoid conflicts of interest and uphold fiduciary responsibilities.
Shareholders
- Meetings: Annual general meetings are not mandatory and can be held anywhere globally, providing operational convenience.
- Rights: Shareholders possess rights to vote on significant corporate matters, access essential company information, and receive dividends. The legal framework ensures equitable treatment and protection of minority shareholders.
Corporate Records and Privacy
- Record-Keeping: Companies must maintain accurate records, including financial statements and minutes of meetings. However, there is no obligation to file these records publicly, ensuring confidentiality.
- Privacy: The Marshall Islands does not maintain a public register of directors or shareholders, safeguarding the privacy of company principals.
Compliance and Reporting
- Financial Reporting: There is no requirement to file annual financial statements or conduct audits for IBCs, simplifying compliance obligations.
- Economic Substance: Following international standards, certain entities may need to demonstrate substantial economic presence in the Marshall Islands, depending on their business activities.
Conclusion:
In summary, the Marshall Islands provides a corporate governance framework that balances flexibility with adherence to international standards, making it an attractive jurisdiction for offshore company formation.
