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Blockchain business in the Marshall Islands

Marshall Islands for blockchain business

10. 01. 2023
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The Marshall Islands is the first jurisdiction in the world to recognize DAOs (decentralized autonomous organizations based on blockchain) as legal entities. This has attracted the attention of blockchain businesses in the Marshall Islands to entrepreneurs who want to operate legally, have high requirements for asset protection and privacy.

Advantages of the Marshall Islands for Blockchain Businesses

The Marshall Islands is a state in the Pacific Ocean associated with the United States. It has its own laws, but it is under American military protection.

Among the advantages of the Marshall Islands for business are:

  • Absence of many taxes for offshore companies like corporate, on income, at source, capital gains, stamp duty.
  • High level of anonymity - no need to publish names of owners, directors in public sources, you can use nominee directors.
  • No annual reporting requirements, but it is better to keep accounting records in case of possible inspection.
  • No currency controls.
  • U.S.A-oriented financial system.
  • Advanced legislation that takes modern realities into account.
  • Fast business registration - 1-2 months.

What the DAO law says

In February 2022 the Marshall Islands authorities equated DAO to non-profit LLC (limited liability companies) with all the associated rights and responsibilities. Such companies have a charter and membership registered in blockchain.

Features of a DAO in the Marshall Islands:

  • The founding documents of a DAO are Articles of Incorporation, operating agreement, certificate of incorporation.
  • Real estate, other assets can be registered to the company.
  • Information about ownership of the company is recorded in the register of members and in the smart contract.
  • It is necessary to clearly describe the purpose of the business, making sure that it is related to non-profit activities. This purpose will be mentioned in the registration certificate.

How to register a DAO

Registering a blockchain business in the Marshall Islands in 2023 goes like this:

  • Hire a registered agent to represent you (e.g. IT-OFFSHORE).
  • Founders (at least 3 persons) choose a unique name, form a purpose.
  • An operating agreement is signed between the founders. It can be amended at any stage after registration of the business, so a template is usually used.
  • Owners of the company, whose stake exceeds 10% of shares, must pass the KYC check.
  • The founders submit the operating agreement, the foreign investment license, and the registration certificate to the regulator.
  • The regulator checks the papers, and if everything is in order, approves the charter.

Registration of a blockchain company takes no longer than 2 months. When the business is registered, you need to open a bank account.

How to open a blockchain business in the Marshall Islands

If you are interested in a blockchain business in the Marshall Islands in 2023, contact IT-OFFSHORE experts.

Apply now

and get a personalized offer