Marshall Islands LLC Guide

Overview

The Marshall Islands LLC is a flexible, privacy-focused offshore entity governed by the Limited Liability Company Act of 1996.

It offers:

• Strong asset protection
• Zero tax on foreign income (for non-residents)
• Quick setup

Ideal for international business, holding assets, or e-commerce.

Key Details

• Key Benefits: Limited liability, 100% foreign ownership, no minimum capital, customizable via private LLC Agreement
• Formation Time: 5–7 business days (after KYC approval)
• Status: Non-resident domestic entity (NRDE) if no business is conducted within the RMI

Use Cases

• Asset protection & holding (real estate, IP, securities)
• International trade, consulting, e-commerce
• Family wealth & estate planning
• Joint ventures, crypto/DAO structures

Tax Status

• 0% corporate tax, capital gains tax, and withholding tax on foreign income
• Pass-through taxation (members report in home country)
• Territorial system — no tax if no RMI-sourced income

Privacy

• No public registry of members, managers, or beneficial owners
• Ownership details held privately by registered agent
• Nominee services available
• No public annual filings required

Onboarding Process

1. Appoint a licensed RMI registered agent
2. Choose a unique name ending in “LLC”
3. Submit all required KYC / KYB documents
4. File Certificate of Formation (basic info + agent)
5. Create private LLC Agreement (standard provided)

Timeline: 5–7 business days after KYC approval

KYC Verification Process

For Individuals (Beneficial Owners / Members / Managers)

• Certified/notarized passport copy
• Certified/notarized second ID (e.g., Driving License)
• Certified proof of address (≤ 3 months)
• Source of funds / wealth statement
• Professional or bank reference
• CV

For Corporate Entities

• Certified Certificate of Incorporation
• Certified Memorandum and Articles of Association
• Certified Register of Directors
• Certified Register of Shareholders
• Certified passport copies (directors & shareholders)
• Proof of address (directors & shareholders)

Note: If multiple corporate layers exist, KYC is required for each entity up to the Ultimate Beneficial Owner (UBO).

Entity Maintenance

• Maintain registered agent and office
• Keep internal records (not public)
• No audits, tax returns, or meetings required (for non-residents)
• Submit annual Economic Substance declaration

Renewal

• Annual (on formation anniversary)
• Pay government renewal fee + agent fees
• File Economic Substance Report (if applicable)

⚠️ Late renewal may result in penalties or dissolution

Closing / Dissolution

1. Members pass resolution to dissolve
2. Wind up affairs (settle debts, distribute assets)
3. File Certificate of Cancellation
4. Formal cancellation ensures a clean closure.