Business Entities

Non-resident domestic corporations. (also known as International Business Companies (IBC))
An IBC is one of the most widely used business vehicles. In the event of a business loss or lawsuit, a shareholder's liability is limited to his/her direct capital investment in the shares of the corporation. Corporations are managed by a board of directors and officers which can be individuals or entities. The minimum number of directors is one (1). Meetings of the shareholders and the board (no annual meeting requirement for board of directors – only for shareholders) must be held annually, and some corporate actions require the consent of shareholders.

Partnerships and Limited Partnerships
In contrast to corporations, the partnership offers flexible management control. Responsibilities, gains and losses may be freely allocated in a partnership. However, unlike the corporation, the partnership does not protect its partners from business losses in excess of their capital investment. Partners are jointly and severally liable for the obligations of the partnership, and their personal assets may be at risk. A limited partnership consists of passive investors, or limited partners, and one general partner who exercises management control. Although the limited partnership limits the liability of the passive investors (or limited partners), the general partners remains personally liable for the business' obligations.

A partnership is registered pursuant to the Marshall Islands Revised Partnership Act through the filing of a Certificate of Partnership Existence. A limited partnership is registered pursuant to the Marshall Islands Limited Partnership Act through the filing of a Certificate of Limited Partnership.

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