How to start a business in Marshall Islands as a foreigner (2026)
Starting a business in Marshall Islands as a foreigner: easy.
The Marshall Islands offers two tracks for foreign business formation. Offshore International Business Corporations (IBCs) and LLCs can be formed in one business day through IRI's global network, with 100% foreign ownership, no minimum capital, and zero tax on non-resident entities. Foreigners operating domestically within the RMI must first obtain a Foreign Investment Business License (FIBL) from the Registrar of Foreign Investment; a 2024 reform program reduced target processing to 30 days, though a 'Reserved List' bars foreigners from small-scale retail, small agriculture, and water-taxi services, and retail/wholesale above USD 50,000 annual turnover requires at least 51% Marshallese ownership.
Legal framework
Business Corporations Act 1990 (IBCs/LLCs, non-resident entities); Foreign Investment Business License Act 1990 as amended 2000 (domestic foreign investment); administered by IRI/RMI Corporate Registry and the Registrar of Foreign Investment (Attorney General's Office)
Key points: starting a business in Marshall Islands
Offshore IBC/LLC formation
Non-Resident Domestic Corporations (IBCs) and LLCs can be incorporated within one business day through any of IRI's 28 worldwide offices. No mandatory minimum share capital exists; a nominal authorized capital of USD 50,000 is conventional but not legally required.
100% foreign ownership (offshore)
For IBC/LLC structures there are no nationality restrictions on directors, shareholders, or officers, all may be of any nationality and reside anywhere. Beneficial ownership details are not filed in any public registry under RMI law.
Foreign Investment Business License (domestic)
Any non-citizen wishing to conduct business within the RMI must obtain a FIBL from the Registrar of Foreign Investment in the Attorney General's Office. Application fee is USD 250; a 2024 OCIT/Ministry of Finance reform program reduced the target processing time to 30 days, down from a prior 60-90 days.
Reserved List restrictions
Foreign investors are barred from small-scale retail (annual turnover under USD 50,000), small-scale agriculture, and water-taxi services. Retail and wholesale businesses above the USD 50,000 turnover threshold must have at least 51% Marshallese ownership.
Economic substance requirements
Entities carrying out 'relevant activities', banking, insurance, fund management, financing, shipping, headquarters, distribution, IP holding, and holding company business, must satisfy RMI economic substance rules; pure holding companies face a lighter-touch test.
Post-FIBL domestic setup steps
After obtaining a FIBL, a domestic operator must reserve a company name with the Registrar of Corporations (USD 100, one day), notarize charter documents at the Attorney General's Office, file Articles of Incorporation with the Registrar, and appoint a registered agent physically present in the RMI, mandatory for all entity types.
Sources
- register-iri.com/corporate/corporate-general-information/
- register-iri.com/blog/how-to-set-up-a-republic-of-the-marshall-islands-business-entity
- register-iri.com/wp-content/uploads/The-Marshall-Islands-Corporate-Registry-IBC-Brochu
- rmiparliament.org/cms/images/LEGISLATION/PRINCIPAL/1990/1990-0099/ForeignInvestmentBusi
- rmiparliament.org/cms/images/LEGISLATION/SUBORDINATE/2000/2000-0001R/2000-0001R_1.pdf
- rmiparliament.org/cms/library/public-laws-by-years/19-2000.html
- state.gov/reports/2025-investment-climate-statements/marshall-islands
- state.gov/wp-content/uploads/2025/09/638719_2025-Marshall-Islands-Investment-Cl
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