Following the introduction of the Marshall Islands (RMI) Economic Substance Regulations, 2018, all non-resident domestic entities (NRDEs) and foreign maritime entities (FMEs) must file an annual report on economic substance. Partner James Clayton, and trainee solicitor Samuel Jones, members of the CJC Marshall Islands Advisory Team, provide an update on the practicalities of submitting an economic substance report.

From 1 July 2020, the RMI has opened its ESR Reporting Portal, to allow the filing of annual reports on economic substance. A report must be filed within 12 months of the next anniversary date (from 1 July 2020) of the NRDE or FME. Each subsequent year, the deadline will be 12 months from the entity’s anniversary date. All entities will receive notice of their reporting period and deadline with each annual invoice. Non-compliance may result in penalties or the annulment of the entity.

Reports are filed using the Entity Number and Unique PIN, which can be found on the Economic Substance Reporting Information and PIN page. These are sent with the annual invoice.

On submission of a report, a receipt and confirmation number will be generated, with a Certificate of Economic Substance Reporting Compliance (CESRC) provided within 72 hours.

The ESR Reporting Portal can be accessed here, and please note that when completing the annual report, all responses must be in English.

CJC frequently advises corporations in relation to their corporate governance processes and the responsibilities/liabilities of their directors/shareholders under Marshall Islands law. The practice is led by Alastair Macaulay who was admitted to the Marshall Islands bar in 2002 and is the only Marshall Islands lawyer based in the United Kingdom.