🇲🇭 Marshall IslandsCompany Establishment/Offshore Registration Highlights
Non-resident domestic companies (NRDC) in the Marshall Islands are generally exempt from local taxes on foreign-sourced income, established quickly, and commonly used for ship registration and holding. Under the Economic Substance Rules (effective 2018, 2019), entities engaged in relevant activities must report economic substance annually. UBO and information exchange requirements also apply. Rules may be subject to adjustments; please refer to the latest announcements from the authorities (IRI Company Registry).
| Common Company Types | Non-resident domestic company (NRDC)/LLC. |
|---|---|
| Corporate income tax | Foreign-sourced income is generally exempt from local tax (0%). |
| Estimated establishment costs | Approximately US$1,000–US$2,000 |
| Annual maintenance | Annual fee, registered agent; annual economic substance reporting required (if applicable). |
| Substance/Reporting Requirements | Economic substance (related activities), UBO, CRS; online submission of substance reports. |
| Suitable for purpose | Vessel registration, holding, asset ownership |
| Bank account opening | Offshore account opening is tightening, requiring comprehensive KYC. |
| Recent Changes | Implementation of economic substance rules, annual substance reporting obligations. |
Key considerations
- Entities engaged in holding, financing, IP, shipping, and related activities must pass board management, adequacy, and CIGA tests and report accordingly.
- Failure to timely declare substance may result in fines or cancellation of registration.
- Home country CFC/substance taxation rules may still apply; should not be considered as overall tax exemption.
General Process
- Establish a NRDC or LLC through an IRI authorized agent.
- Register UBO and assess whether it falls within the economic substance scope.
- Annual declaration of economic substance via the IRI online system (if applicable).
- Pay the annual fee annually and maintain the registered agent.
Frequently Asked Questions
Can Marshall Islands companies only be used for ship registration?
The Marshall Islands is known for ship registration, but NRDC is also widely used for holding and asset management; compliance and substance requirements vary by use and should be assessed on a case-by-case basis.
Do Marshall Islands companies need to report economic substance?
Entities engaged in related activities must submit an annual economic substance report; the scope of purely passive holdings must be confirmed by IRI rules, and failure to report may result in penalties.
Official sources：Republic of the Marshall Islands Registry (IRI) · Data date：2026-06。This page serves as a neutral compilation of publicly available information for reference only, notTax / LegalRecommendations are based on the latest official announcements.