Marshall Islands Incorporation: Asset Protection And Other Corporate Benefits

By Author: John Media
Total Articles: 34
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Marshall Islands is a popular offshore financial center that provides corporate and commercial services to non-resident companies that will enjoy protection of financial assets, confidentiality, and tax advantages.

In 1990, this jurisdiction adopted the Marshall Islands Association Law which is modeled on the corporate laws of New York and Delaware in the US especially in terms of facsimile filings, bearer shares, and execution of documents without the need for notary affidavits.

One of the advantages of Marshall Island incorporation is that there is no requirement for annual returns or filings for offshore companies and businessmen who want to protect such confidential data. In addition, directors and shareholders can protect their identity since there is no public registry containing their names.

According to corporate lawyers, the main reasons why Marshall Islands attracts foreign and international companies is that it provides asset protection which is one of the most important things for many business organizations.

Asset protection includes the following advantages:

* Companies will ...
... be protected from lawsuits and future creditors.

* Shareholders and directors will enjoy confidentiality and privacy since there is a reduced financial profile.

* Companies will be protected from probate which is a legal process of distributing a deceased person's property. With such protection, companies can protect their anticipated inheritance.

* Shareholders and directors can protect their shares from divorce claims. In addition, the Marshall Islands Association Law further strengthens the provisions stated under a prenuptial agreement.

* In case that insurance companies are unable or unwilling to cover a claim, companies incorporated in the Marshall Islands will enjoy coverage which means better protection from financial losses.

* Some insurance companies do not provide coverage on environmental hazards and other risks. Fortunately, companies in the Marshall Islands will still enjoy coverage on such risks.

Aside from asset protection, confidentiality is another major advantage of companies in the Marshall Islands especially nowadays that shareholders and directors with high net worth are at risk of being sued even in the most frivolous grounds. This is possible since they enjoy a reduced exposure to legal action.

While there are many business structures companies can adopt in the Marshall Islands, most experts believe that the private limited company (LLC) is the most ideal setup since it perfectly combines the well-structured operation in partnership, and the limited liability protection which is the main feature of a corporation.

Limited liability is a legal term in which the personal assets of business owners and shareholders are protected from debts, losses, and liabilities of their business.

ABOUT THE AUTHOR:
Rikvin is the leading Marshall Islands Incorporation specialists. It has assisted thousands of foreign entrepreneurs setup Marshall Islands Company operations including securing their work visas.