Nowadays, when we think of investing or establishing a new company, it is possible that the first thing that comes to our minds is not a chain of islands in the Pacific Ocean. However, the Republic of the Marshall Islands is also known for having good international rankings of economic freedom and political stability with a government that greatly promotes the arrival of foreign investment to the country.

In addition to its lovely beaches of white sand and tropical climate during most of the year, there are also countless eases offered by the RMI for those interested in tax exemptions in different economic activities via redomiciliation of companies to the jurisdiction of the Marshall Islands, all regulated by the Republic Marshall Island Association Law which is actually modeled after the corporate laws of the U.S. State of Delaware. If you want to know more about this you can find it here.

What is Redomiciliation?

Redomiciliation is the process whereby a company transfers its registration from one jurisdiction to another. This means that all the rights and liabilities of the foreign company are transferred to a specific jurisdiction and that there is only one entity, not a new one being created. The Marshall Islands redomiciliation program will be governed primarily by the RMI Association Law, as explained before.

When talking about the RMI, free redomiciliation is offered and this allows business entities to retain existing assets and liabilities, just as they are transferred to a stable jurisdiction favorably rated by international regulatory bodies such as this territory which despite all the eases does not carry the label of a tax haven. It is important to mention that any type of non-resident company can redomicile in the Marshall Islands, including foreign corporations, partnerships, limited partnerships (LPs) and limited liability companies (LLCs) or its foreign equivalent. The RMI is now recognized as a modern and stable jurisdiction for business.

What Are the Benefits of Redomiciling Your Company to the Marshall Islands?

The RIM recognizes the challenges of doing business in its territory, it is valid to consider aspects such as distance or remote location. However, as mentioned above, the Republic of the Marshall Islands offers countless benefits and opportunities with the purpose of attracting foreign investment.

For this reason, it has gained international recognition by offering the efficiency and flexibility required by corporations and investors that have relocated to this jurisdiction. The benefits of re-domiciling or starting a new company in the Marshall Islands are countless and you can find them here at Mundo.

Like any other important or striking modern business center these days, the Republic Marshall Islands does not impose any taxes or reporting requirements on companies. For this reason, incorporating an offshore company in the Marshall Islands may help reduce the taxes burden as well as general costs to make business. As we have mentioned on several occasions, the RMI is a modern and stable corporate jurisdiction with a high level of international recognition and all non-resident domestic business entities registered in the territory are governed by the RMI Associations law, where privacy is a priority, as it will also be possible to save on professional fees by using a Marshall Islands offshore company as a personal holding company. These entities can be suitable for estate planning and reducing costs and delays in probate.

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Another positive aspect to highlight is that any Marshall Islands company can be used as an investment vehicle, to invest in shares, commodities, and other assets, while providing anonymity and tax savings. In this sense, through a Marshall Islands company, you would also have the possibility to increase your wealth in several ways. If you own property in several different countries, the Marshall Islands offshore company can collectively hold title to these properties. Ownership can be transferred by shares in the company instead of transferring the actual properties.

In addition, the Marshall Islands company can be used as an employment company to reduce payroll costs and travel expenses, or for capital raising. And last but not least, many large companies from economically and politically uncertain and unstable countries, often attempt to decrease the perception of risk by relocating the ownership of assets and the base of their business to a stable offshore jurisdiction such as the Republic of the Marshall Islands. 

Once you understand the benefits of redomiciling your company to the Marshall Islands you should be interested in knowing how to go about this procedure, it is not complicated at all and here in Mundo we can explain how.

Redomiciliation Process

Redomiciling your company to the Marshall Islands is quite simple. The application for redomiciliation must be done through a qualified intermediary such as lawyers, accountants, corporate services, and much more who must complete certain procedures. 

For the redomiciliation of a company, the Marshall Islands Maritime and Corporate Administrators, Inc. will require the client's signature on the Articles of Domiciliation, which must include the name of the corporation prior to the transfer of domicile, and any change of the name if it is needed, the date and jurisdiction in which it was first incorporated, together with a statement that the transfer of domicile has been approved and that it is not prohibited in the previous jurisdiction; a statement that this transfer will be made in good faith and will not be involved in activities detrimental to the parties involved or interested.

The MI Maritime and Corporate Administrators will also require:

-The signed Articles of Incorporation of RMI which shall contain the name of the corporation, the duration of the corporation if not perpetual; must contain the purpose under which it is being formed; 

-A certified copy of the company's foreign Articles of Incorporation, Articles of Association, or similar documents on which the company's existence is based, and all amendments and a recent document providing evidence of the company's existence. 

Once this process is understood, it is necessary to know that most modern corporate jurisdictions have established redomiciliation laws, being this one of the main reasons why it has gained more relevance in recent times. 

The Republic of the Marshall Islands represents an incredible opportunity to redomicile your company to one of the most modern and stable systems in the world, if you want to know more about it contact us here at Mundo.

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