The Marshall Islands is a country in the Pacific Ocean, close to the Equator. It comprises 1,156 islands, and 98% of its territory is water - the largest portion for any sovereign state in the world. It is home to 58,000 people, and the official language is English. The capital of the Marshall Islands and the country’s financial and business center is Majuro.
The Republic of Marshall Islands has recorded steady growth in GDP over the last two years and has special benefits and tax exemptions for foreign investors establishing businesses in the country.
Disclaimer: Be aware that this article is not a substitute for legal advice. Please always check official websites or seek legal advice before you take action.
Establishing a sole proprietorship in the Marshall Islands
The first and foremost benefit of registering as a sole trader is that you own the entire company. This means that you get all the profits from the company but that you are also personally liable for any debts acquired by the company. A sole proprietorship is the simplest form of doing business; however, all legal entities will still need to be registered with the Chamber of Commerce.
What are the benefits of being a sole trader in the Marshall Islands:
- Maximum one shareholder and director - only one person can own, manage and get profits from the entire company.
- Unlimited liability - the owner is not protected from acquiring the company’s debts and is liable with their own property.
- Easy to establish - business registration is free and takes a single business day to complete it.
- No auditing required - registering a sole proprietorship requires no starting capital and no accounting auditing from the designated channels. There is also no wait time before the business can start conducting business activities.
- Easy to communicate and pay - English is the official language of the country, and the US dollar is the official currency. Conducting business will be easier since there is no language gap or conversion fees.