Offshore · Company formation

Company formation in Marshall Islands

Holding, vessel-owning and asset-holding structures whose owners want a zero-tax, low-disclosure vehicle. They need to be able to tolerate significant offshore banking friction and the scrutiny that comes with a tax-haven reputation.

Last verified July 2026

At a glance

Entity
Non-Resident Domestic Corporation (the RMI's International Business Company, formed under the Business Corporations Act 1990); the LLC under the Limited Liability Company Act 1996 is the common alternative
Corporate tax
0% on non-RMI-source income for non-resident domestic entities (statutory exemption in the Business Corporations Act 1990); the entity must conduct no business within the Marshall Islands. No capital gains, withholding, or stamp duty on such entities. As of 2026.
Incorporation time
~1-2 business days for a corporation; LLCs and partnerships run ~3-5 days due to operating-agreement drafting
Minimum capital
None required. Standard authorised capital is 500 shares of no par value (or up to US$50,000 par value) to stay in the lowest government-fee tier; at least one share must be issued.
Resident director
No resident director required. Minimum one director; directors and shareholders may be natural persons or corporate entities of any nationality or residence.
Audit
No statutory audit. No financial statements are filed with the Registry; only internal accounting records and registers of directors/members must be kept.
Remote set-up
Yes, fully remote. Formation is done exclusively through an IRI-appointed registered agent; no notarisation of the formation documents is required, but the agent must run KYC/beneficial-ownership due diligence (passport, proof of address, source of funds).
Government fee
US$500 first-year filing fee to the RMI Registrar of Corporations, then ~US$450 annual maintenance fee; formation is only available via appointed registered agents, whose bundled first-year package (agent + registered office) typically runs from ~US$650. As of 2026.
Best for
Holding, vessel-owning and asset-holding structures whose owners want a zero-tax, low-disclosure vehicle. They need to be able to tolerate significant offshore banking friction and the scrutiny that comes with a tax-haven reputation.

The process

  1. Engage an IRI-appointed registered agent and complete KYC/beneficial-ownership due diligence (passport, proof of address, source of funds)
  2. Reserve the company name and file Articles of Incorporation with the RMI Registrar of Corporations
  3. Appoint director(s), issue at least one share, adopt bylaws, and prepare internal registers
  4. Pay the government filing fee and receive the Certificate of Incorporation (typically within 1-2 business days)
What can go wrong
  • The 0% status is conditional on conducting no business in the RMI; every non-resident domestic entity must still file an annual economic substance report, and entities carrying on 'relevant activities' (e.g. finance/leasing, IP, shipping, holding) may have to show substance in the RMI or prove tax residence elsewhere.
  • Banking is the real bottleneck: many banks decline or heavily scrutinise RMI companies, and opening an operating account routinely takes far longer than incorporation itself.
  • Reputational and listing risk: the Marshall Islands sat on the EU list of non-cooperative jurisdictions from Feb 2023 until delisting on 10 October 2025 (not listed in the Feb 2026 update); re-listing is possible and many counterparties still treat it as a tax haven.
  • Ownership is private (share/member registers are not public), but the registered agent holds beneficial-ownership information and must disclose it to authorities on request.

Form a company in Marshall Islands?

One named person on the file, an honest read on tax and substance, and a fixed quote before you commit.