Marshall Islands LLC

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), and a quick setup — ideal for international business, holding assets, or e-commerce.

Overview

Key Benefits: Limited liability, 100% foreign ownership, no minimum capital, customizable via private LLC Agreement
Formation Time: 5–7 business days once KYC review is completed and approved
Marshall Islands LLCs are treated as non-resident domestic entities (NRDEs) when they do not conduct business within the Marshall Islands. In such cases, they may benefit from favourable tax treatment and enhanced privacy features.

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, 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

Appoint licensed RMI registered agent
Choose a unique name ending in “LLC”
Submit all required KYC / KYB documents listed below
File Certificate of Formation (basic info + agent)
Create private LLC Agreement (Otonomos provides the standard agreement)
Formation in 5–7 business days once the KYC is approved

KYC Verification Process

For beneficial owners, members, or managers (natural persons)

Certified/notarized passport copy
Certified/notarized second ID (e.g. driving license)
Certified proof of address (utility bill or bank statement ≤ 3 months old)
Source of funds / wealth statement
Professional or bank reference
CV or professional profile

When members and managers are corporate entities

Certified copy of Certificate of Incorporation (or equivalent evidence of existence)
Certified copy of Register of Directors
Certified copy of Register of Shareholders
Passport copies of directors and shareholders
Certified proof of address of directors and shareholders

Multi-layer ownership structures

KYC documents are required for each entity in the ownership chain
This applies up to and including the Ultimate Beneficial Owner (UBO)

Entity Maintenance

Maintain registered agent and registered office
Keep internal records (not public)
No audits, tax returns, or meetings required for non-resident entities
Submit annual economic substance declaration at time of renewal

Renewal Periods

Annual renewal on formation anniversary
Pay government renewal fee + registered agent services
File Economic Substance Report (if applicable)
Late renewal may result in penalties and possible dissolution after notice

Shutting Down Your Entity

Members resolve to dissolve (per LLC Agreement)
Wind up affairs (pay debts, distribute assets)
File Certificate of Cancellation with Registrar
Formal cancellation ensures clean closure