How to Register as a Sole Trader in the Marshall Islands
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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.
Requirements for registering as a sole trader
Here is the required documentation that should be prepared before registering your sole proprietorship:
- Entity name - the name should not be the same or similar to names of other companies registered in the Marshall Islands. The owner can use their own name as the name of the company. The name can be in any language that uses the Latin alphabet.
- Purpose - what the business will be doing; the scope of business
- Entity address - all businesses must be registered to a local address
- Authorizations - each business is authorized to have every power allowed by the Marshall Islands Business Corporations Act.
- Name and address of the person opening the business - the person opening the business should have some documents that provide proof of identity.
- The Owner’s signature - along with a signature of one witness
NOTE: All sole proprietorships on the Marshall Islands need to be opened by registered citizens of the islands. Foreign citizens cannot establish this form of business in the Marshall Islands.
All documents in a foreign language must be translated into English and certified by a qualified translator.