Marshall Islands

Company Formation in Marshall Islands

Marshall Islands

Formation Time

1 business day

Min. Capital

No minimum (500 shares no-par standard)

Corporate Tax

0% (statutory tax exemption for non-resident domestic entities)

Foreign Ownership

100%

Overview

The Republic of the Marshall Islands (RMI) is a sovereign island nation in the central Pacific Ocean, operating in free association with the United States under the Compact of Free Association. Governing international maritime and commercial affairs through International Registries, Inc. (IRI), the Marshall Islands is home to the world's second-largest ship registry and is a preeminent global jurisdiction for non-resident domestic entities (BCs and LLCs). Under the Marshall Islands Associations Law (modeled closely on Delaware General Corporation Law), non-resident companies enjoy a comprehensive statutory tax exemption: 0% corporate tax, 0% personal tax, 0% capital gains tax, and 0% withholding taxes. Company formation can be completed in as little as 24 hours. The RMI corporate framework is exceptionally favored by publicly traded shipping conglomerates on the NYSE and NASDAQ, commercial vessel owners, Web3 DAO foundations (under the DAO Act of 2022), and international holding operations.

1-day incorporation

0% statutory tax exemption

World's #2 ship registry

Delaware-modeled corporate law

Pioneer DAO legal framework

Why Choose Marshall Islands

Statutory 0% tax exemption under the Marshall Islands Associations Law

World's #2 maritime and shipping registry — trusted by NYSE/NASDAQ listed firms

Corporate law modeled on Delaware General Corporation Law

Fastest formation turnaround: same-day or 24-hour electronic processing

DAO Act of 2022 legally recognizes decentralized autonomous organizations (DAOs)

Compact of Free Association with the United States provides geopolitical stability

US Dollar is the official legal tender — zero foreign exchange volatility

Confidential corporate register with no public filing of directors or UBOs

Business Entity Types

Entity	Ownership	Directors	Capital	Tax	Best For
Business Corporation (BC)	100%	1 (individual or corporate)	No minimum (standard 500 no-par shares or USD 50,000)	100% statutory exemption from corporate, dividend, and capital taxes	Publicly traded maritime firms, international trading, holding company assets
Limited Liability Company (LLC)	100%	Managed by members or managers	No minimum	0% statutory tax exemption	Asset protection, joint ventures, maritime vessel ownership, consulting
DAO LLC (Decentralized Autonomous Org)	100%	Algorithmic / Smart contract or manager	None	0% tax	Decentralized crypto protocols, Web3 governance, treasury management
Foreign Maritime Entity (FME)	100%	Parent officers	None	0% tax	Enabling foreign companies to own and flag vessels in the RMI

Step-by-Step Formation Process

Name Availability & Due Diligence

Same day

Clear corporate name instantly via International Registries, Inc. (IRI) portal.

Articles of Incorporation Filing

1 day

Lodge Articles of Incorporation or Formation with the Maritime Administrator / Registrar.

Certificate of Incorporation Issuance

Same day

Receive official electronic and sealed Certificate of Incorporation, Articles, and By-Laws.

Corporate Kit & Apostille

2–3 days

Dispatch apostilled statutory documentation kit for banking and contracting.

Bank Account Opening

2–6 weeks

Establish corporate multi-currency accounts with global banking partners.

Costs & Fees

Government / License Fee	USD 450+
Our Service Fee	USD 1,600+
Annual Renewal	USD 1,250+

Fees are indicative and may vary based on business activity, entity type, and additional approvals required. Contact us for a precise custom quote.

Get Custom Quote

Banking

Because local retail banking on Majuro is geared toward domestic retail, non-resident Marshall Islands companies typically open accounts with corporate banks and EMIs in Singapore, Switzerland, London, Mauritius, or the UAE.

Account Opening Time

2–6 weeks

Multi-Currency

Yes — multiple currencies supported

Recommended Banks

Swissquote BankAfrAsia Bank (Mauritius)Wise BusinessAirwallexDBS Singapore (via introduction)Bank One Mauritius

Tax Overview

Corporate Tax

0% — full statutory exemption for non-resident domestic entities under Associations Law

Personal Income Tax

0% for non-residents

VAT / Sales Tax

0% (exempt from local gross revenue taxes)

Capital Gains Tax

0% — zero capital gains tax

Withholding Tax

0% on dividends, interest, royalties, and fees

Double Tax Treaties

0 countries

The Marshall Islands has enacted Economic Substance Regulations compliant with the OECD Forum on Harmful Tax Practices and the EU Code of Conduct Group.

Frequently Asked Questions

Why do so many NASDAQ and NYSE shipping companies choose the Marshall Islands?

Marshall Islands corporate law is modeled directly on Delaware corporate law, which US institutional investors and Wall Street underwriters understand intimately. Combined with the world's second-largest ship registry, zero taxation on shipping income, and robust judicial predictability, it is the premier choice for maritime IPOs and global vessel ownership.

Can a DAO be legally registered as a Marshall Islands LLC?

Yes. Under the Decentralized Autonomous Organization Act of 2022, the Marshall Islands became the first sovereign nation to formally recognize DAOs as legal entities (DAO LLCs). The law recognizes smart contracts, algorithmic management, and tokenized governance voting.

Is Marshall Islands on the EU blacklist?

No. The Marshall Islands was fully delisted from the EU list of non-cooperative jurisdictions after demonstrating effective enforcement of its economic substance framework and compliance with international tax standards.