Business
Associations Law 1990 with a large non-resident corporate and ship registry
Domestic companies incorporate under the Associations Law 1990, which also supports non-resident domestic entities used internationally. The Marshall Islands maritime registry is among the largest in the world by tonnage.
Key rules
- Jurisdiction — Registry and licensing are national. The non-resident register and the ship registry are administered abroad through appointed registrars, while resident businesses deal with the Registrar and the relevant local government.
Governing law
- Associations Law 1990Business Corporations Act
- Associations Law 1990Limited Liability Company Act
- Maritime Act 1990
- Foreign Investment Business License Act 1990
In practice
The Associations Law 1990 was drafted on a US model and provides for business corporations, partnerships and limited liability companies. It distinguishes resident domestic entities, which trade locally and need a foreign investment business licence where foreign-owned, from non-resident domestic entities, which may not do business in the Marshall Islands and are used for international structuring and ship-owning. The Maritime Act 1990 underpins a flag registry administered through International Registries Inc., and vessel finance and mortgage work is a genuine speciality of Marshall Islands law. Anyone advising on the non-resident register should note the economic-substance and beneficial-ownership reporting obligations introduced in response to OECD and EU listing pressure, which changed the compliance profile substantially.