Marshall Islands Subsidiary
When you take your business abroad, you may consider establishing a subsidiary. Globalization Partners allows you to reap the benefits of a subsidiary while bypassing the establishment process.
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When you take your business abroad, you may consider establishing a subsidiary. Globalization Partners allows you to reap the benefits of a subsidiary while bypassing the establishment process.
How to Set Up a Marshall Islands Subsidiary
In the Marshall Islands, subsidiary setup begins with the Registrar of Corporations. Here, you’ll perform a company name search to ensure your business has a unique title. You can’t create your company under a name that already exists.
When you confirm that your company name is unique, you can work with the Attorney General’s Office to notarize your business charter and associated documents. You can then submit your notarized documents with your registration application at the Registrar of Corporations.
After you’ve received your official registration, you’ll need to file for an employer registration number at Social Security Administration. This number will allow you to make employee contributions to the Social Security Fund.
Before you can operate your business within the country, you’ll need to file for a business license with the relevant municipality. You’ll need to submit your notarized charter with a license application and the correct fees during this process. The fee you pay will depend on your municipality and the type of business you operate.
Marshall Islands Subsidiary Laws
To establish a subsidiary, you’ll need at least one shareholder, one director, and one secretary to operate. None of these appointments need to be residents.
You’ll also need to create a company charter. While this document is required for your incorporation, it’s also helpful for devising a business structure. Your charter should include details regarding a variety of business processes, including how you appoint directors and secretaries.
Your business will likely file as a Limited Liability Company (LLC). The country has a range of LLC agreements on how these companies should be operated and managed, so it’s vital to comply with these regulations. Before you notarize your company chart at the Attorney General Office, you may want to work with a legal professional to create the document.
Benefits of Setting Up a Marshall Islands Subsidiary
When you create a subsidiary in the Marshall Islands, you’ll have an entity separate from your parent company. This arrangement comes with two notable benefits — identity and liability.
As a singular entity, your subsidiary will have the opportunity to fully integrate into the local business culture. This presence will help you build rapport with residents and become a competitive employer in the hiring landscape.
You’ll also create a separate legal entity. If your subsidiary encounters any legal issues, your parent company won’t be responsible, reducing your losses and making it easier to bounce back.
With Globalization Partners, you gain all the benefits of a subsidiary without the setup. We’ll hire your workforce through our subsidiary and allow you to create a unique company culture in the country. Rather than reducing legal risks, you’ll offload them all to us, giving you peace of mind during business development.
Other Important Considerations
Your two most significant resources during your subsidiary setup are time and money. While the incorporation process takes a couple of weeks, this time frame doesn’t account for the larger scope of establishing a business. You’ll need to take time to create your company charter, find a director and secretary, and find or build a location for conducting a business.
Every step in incorporating comes with processing fees. You’ll likely have to pay for a flight into the country to ensure a smooth application process, and you’ll want to set a budget for renting or buying property for conducting business.
Let Globalization Partners Help With Your Expansion
Want to enjoy the advantages of a subsidiary without having to set one up? With Globalization Partners, you can. Contact our team today to learn more about our global expansion services.