Marshall Islands for blockchain business
The Marshall Islands is the first jurisdiction in the world to recognize DAOs (decentralized autonomous organizations based on blockchain) as legal entities. This fact has attracted the attention of the entrepreneurs who want to operate legally and 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 laws, but it is under American military protection.
Among the advantages of the Marshall Islands for business are:
- Absence of some taxes for offshore companies like corporate, on income, at source, capital gains, and stamp duty.
- High level of anonymity - there is no need to publish names of owners, or directors in public sources. You, can have nominee directors.
- No annual reporting requirements (but it is better to keep accounting records in case of inspection).
- No currency controls.
- The US-oriented financial system.
- Progressive legislation taking into account modern realities.
- 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 on blockchain.
Features of a DAO in the Marshall Islands:
- The founding documents of a DAO are Articles of Incorporation, operating agreement, and certificate of incorporation.
- The company can own real estate and other assets.
- Information about ownership of the company is recorded in the register of members and the smart contract.
- 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. The registration certificate will include this information.
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 three persons) choose a unique name and form a purpose.
- An operating agreement is signed between the founders. It can be amended at any stage after business registration, 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 approves the charter if everything is in order.
Registration of a blockchain company takes two months at maximum. When the business is registered, you need to open a bank account.
How to open a blockchain business in the Marshall Islands
Contact IT-OFFSHORE experts if you are interested in a blockchain business in the Marshall Islands in 2023.