STEPS TO SETTING UP A BUSINESS IN THE REPUBLIC OF MARSHALL ISLANDS

Investment Information 2015 M A R S H A L L I S L A N D S | O F F I C E O F CO M M E R C E & I N V E S T M E N T

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Prior to commencement of business in RMI; a foreign investor will be expected to apply and obtain approval from the following agencies: • • • • • • •

Office of the Registrar at the Ministry of Finance for Foreign Investment Business License (FIBL) Office of the Registrar of Incorporation at the Attorney General’s office for Corporations to be Incorporated Marshall Islands Social Security Administration (MISSA) for Employment Identification Number (EIN) Labor Division at the Ministry of Foreign Affairs for Work Permit Office of Immigrations for Entry Permit & Alien Registration Revenue & Taxation Office at the Ministry of Finance for Business Registration & Tax Orientation Majuro Atoll Local Government or other Local Governments for Business License to operate in the respective communities

FOREIGN INVESTMENT BUSINESS LICENSE (FIBL) APPLICATION CHECKLIST 1.

Application for a Foreign Investment Business License (FIBL) – New Business. An application form may be obtained from the Division of Taxation & Revenue at the Ministry of Finance. Application Fee of USD $250.00 (non-refundable)

The following must accompany the FIBL application: • Entry Permit • Foreign Investor Work Permit • Employment Identification Number (EIN) • Police Clearance (local or Interpol) for the past 3 months from country of residence • If business is listed as a corporation, the application form should include the following: o Articles of incorporation and by-laws o Charter of certificate so do business where organized o Insurance companies should attach copy of last annual statement • Any other relevant document upon request (Normally, it takes about 5 to a maximum of 15 days to process the FIBL application provided that all required documents are submitted with the application and the application has been filled correctly. The Office of Taxation & Revenue will conduct due diligence and credibility checks for verification).

CHECKLIST FOR INVESTOR REQUESTS 1. •

Amendment of Foreign Investment Business License (FIBL) At the request of the registered investor, the Registrar may amend or modify a foreign investment business license to substitute or add a substantially new business activity, or otherwise substantially change the scope of the business activities on such license, upon payment of the prescribed fee of USD $250.00

Investment Information 2015 M A R S H A L L I S L A N D S | O F F I C E O F CO M M E R C E & I N V E S T M E N T

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• • • a) b) c) d) e) f)

Existing businesses are allowed to expand their existing business operations, provided such expansion does not constitute a substantially new or different business activity, which is contained in the Reserved List FIBL holder shall advise the Registrar in writing of any change in circumstances that necessitates a change to the data contained in the Register of Foreign Investment within 30 days of the change taking place A FIBL granted shall at all times be subject to modification, suspension or revocation by the Registrar in accordance with the Marshall Islands Administrative Procedure Act if: the application of the grantee is found to have contained false or fraudulent information; the grantee bribed or otherwise unlawfully influenced any government official or Registrar other than on the merits of the application; the grantee presented false evidence or fraudulent information to the Registrar in support of his/her application; the grantee violates any laws in the Republic; the grantee engages in business activities which are in violation of any condition or term imposed in the license; and the grantee engages in business activities outside the scope of the license;

(5 days up to a maximum of 15 days to process request provided all required documents are submitted and all fees have been paid).

ENTRY VISA/PERMIT APPLICATION CHECKLIST FOR BUSINESS INVESTORS (Application fee of USD $100 and alien registration fee of USD $50) • • • •

• • • • • • • • • • •

Application form (completed, signed and dated) 2 passport size photos Passport (clear color copy & valid 6 months or more) Police clearance o Within 3 months from date of application o From point of hire (new applicants only) o From National Police (renewals only) Medical clearance o Within 3 months from date of application o MUST include HIV/AIDS and TB Approved FIBL Clearance letter from Tax & Revenue (renewals only) Clearance letter from Marshall Islands Social Security Administration (MISSA) (renewals only) Majuro Atoll Local Government (MALGOV) business license Clearance letter from MALGOV (renewals only) Labor permit (if applicable) Immigration bond Social security card (renewals only) Expired entry & registration cards (renewals only) Prescribed fee(s)-receipt

(5 working days to process provided all relevant documents as per Checklist are submitted at the time of application and application forms are correctly and completely filled). Investment Information 2015 M A R S H A L L I S L A N D S | O F F I C E O F CO M M E R C E & I N V E S T M E N T

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APPLICATION CHECKLIST FOR FOREIGN INVESTOR WORK PERMIT • • • • • • • •

Application form (completed, signed and dated) Foreign investment business license (FIBL) – original or certified copy Police clearance (must be dated within the last 3 months) Health clearance (must be dated within the last 3 months and must include HIV/AID and TB) Clearance letter from Marshall Islands Social Security Administration (MISSA) Clearance letter from Tax & Revenue Clearance letter from Majuro Atoll Local Government (MALGOV) Receipt of payment for application fee (USD $150.00) (21 working days to process provided all relevant documents as per Checklist are submitted at the time of application and application forms are correctly and completely filled. All supporting documents are required to be originals or certified copies of the original. All foreign language documents must be translated by an official translation company or organization).

APPLICATION CHECKLIST FOR EMPLOYER IDENTIFICATION NUMBER (EIN) Foreign company of any kind: • Foreign Investment Business License (FIBL) • Valid passport or ID (of the signatory for the application form) • Registration Fee USD $20.00 If employer is a foreign corporation, must provide copy of valid corporate documents o Articles of Incorporation o By-laws Corporate business or non-governmental organization (NGOs) of any kind: • Articles of Incorporation • By-laws • Corporate Charter granted from the Registrar of Incorporations (AG’s office) • Photo ID (passport or ID) to identify the officer(s) listed in the organization • Registration Fee USD $20.00

FOREIGN INVESTMENT REGULATIONS 2004

• • • • • • • • • • •

Reserved List:

The following list of economic sectors, subsectors or business activities indicates areas in which new investment are reserved solely for citizen investors, pursuant to Section 504.5 of the Act. Small scale agriculture for local markets Small scale mariculture for local markets Bakeries and pastry shops Motor garages and fuel filling stations Land taxi operations, not including airport taxis used by hotels Rental of all types of motor vehicles Small retail shops with a quarterly turnover of less than USD $1,000 (including mobile retail shops and /or open air vendors/take outs) Laundromat and dry cleaning other than service provided by hotels/motels Tailor/sewing shop Video rental Delicatessen or deli shop of food take out