Consolidated Economic Substance Regulations (ESR) Reporting Portal Simplifies Fulfillment of Regulatory Requirements

16 June 2021

Republic of the Marshall Islands (RMI) business entities which share a common RMI parent company, and where the subsidiaries are a part of a consolidated tax return or financial report, have a new option to simplify the process for fulfilling their regulatory requirement thanks to the new Consolidated ESR Reporting Portal (the “Consolidated Portal”). The Consolidated Portal allows these parent entities to file a Consolidated ESR Report and include any subsidiaries that are one of the following: a shipping business, holding company business, dormant company, or a business entity that has no income from a relevant activity. This Consolidated Portal simplifies the process of reporting for multiple subsidiaries under the one parent entity.

“We’re glad to offer this feature for parent entities with subsidiaries that are a part of consolidated tax return or financial report,” said Alison Wilson, Senior International Counsel, International Registries, Inc. “For publicly traded entities, among others, the Consolidated Portal will save significant time and resources and reflects our commitment to client service and regulatory compliance.”

“I am thankful I had the opportunity to be one of the attorneys testing the system prior to its release,” said Derick Betts, Partner at Seward & Kissel LLP. “We have multiple public and private shipping clients alike that will uniformly applaud the user-friendly and cost-saving nature of the Consolidated ESR reporting option,” he concluded.

Focused on streamlining compliance with regulatory requirements, the RMI Registrar of Non-resident Domestic Corporations (the “Registrar”) launched an ESR Reporting Portal in July 2020. The digital portal facilitates the filing of annual reports to the Registrar, part of the ESR requirements the RMI passed in 2018. The Consolidated Portal simplifies the filing of annual ESR Reports for entities that meet the above requirements.

If you have questions about whether you meet the requirements, please visit the ESR portal page: www.register-iri.com/corporate/esr/.