Jurisdiction · MH

Marshall Islands company formation

The Republic of the Marshall Islands passed the DAO LLC Act in 2022: the first statutory recognition of a Decentralized Autonomous Organization as a legal entity anywhere in the world. The country licenses a sole registered agent for DAO LLC filings under the statute; there is no second source. If you're operating a DAO and want a sovereign legal wrapper that recognizes on-chain governance natively, Marshall Islands is the only option.

Tier: GRAY
Formation: 7 business days
Apostille: Supported
UBO register: Private
EU list: Off both EU lists
FATF list: Off the FATF lists

Figures verified February 2026 · Sources: EU Annex I/II and FATF list status, detailed in Plain talk below.

Quick answer

Can a non-resident form a Marshall Islands company?

Yes. A non-resident can form a Marshall Islands entity. Marshall Islands is a GRAY jurisdiction. Banking is more selective and a compliance desk reads it as mid-tier, so confirm your rail accepts it before you file. Formation is $13,999 all-in / ₿0.17586683 / 17,586,683 sats, paid in Bitcoin or USDT, and takes 7 business days.

Tier: GRAY
From price: $13,999 all-in
Formation time: 7 business days
EU / FATF status: off both EU lists, off the FATF lists
Public UBO register: No
Apostille: Supported

Who this is wrong for:Marshall Islands is not in the EU and not in FATF white-listed jurisdictions. Some counter-parties, especially traditional banks and EU regulators, will treat the entity skeptically. Expect more friction in banking onboarding than for a Wyoming DAO LLC.

Why this jurisdiction

What makes Marshall Islands different

The only sovereign legal wrapper for DAOs with statutory recognition since 2022.
Single licensed agent: no fragmented competitor landscape, no shopping required.
Operating Agreement explicitly references on-chain governance and smart-contract authority.
Removes the legal-personality ambiguity that exposes core contributors to personal liability.

Plain talk

What you are actually buying with Marshall Islands

Tier

GRAY

GRAY means banking is more selective and the entity reads as mid-tier to a compliance desk. It is not blacklisted, but expect a closer look and a narrower set of rails that will onboard it.

EU list

Off both EU listsOff the EU Annex I and Annex II lists as currently recorded. Lists move, so confirm current status before you file. We do not overstate this as permanent clean status.

FATF list

Off the FATF listsOff the FATF grey and black lists as currently recorded. Lists move, so confirm current status before you file.

UBO register

No public registerOwnership is not on a public register, but the licensed agent collects and verifies UBO regardless, and anonymous formation is not available. The Marshall Islands agent's KYC is substantive. They are the regulated entity in the jurisdiction and take that role seriously. Plan to provide ID and a clear description of the DAO's purpose. Anonymous formation is not available for this SKU.

Banking reality

Banking for DAOs is harder than for traditional LLCs. We surface all three options on the post-formation flow and route based on your treasury composition. See the Banking page for named rails.

When Marshall Islands is the wrong choice

Marshall Islands is not in the EU and not in FATF white-listed jurisdictions. Some counter-parties, especially traditional banks and EU regulators, will treat the entity skeptically. Expect more friction in banking onboarding than for a Wyoming DAO LLC.

The licensed agent is the only agent. There is no competitive market. Pricing is set by a sole-source provider and is meaningfully higher than Wyoming's DAO LLC SKU.

KYC reality

What we collect, and what Marshall Islands filing requires

We collect

Email, country of residence, intended use statement
OFAC + EU + UN sanctions screen
Tier 1 KYC (ID + proof of address + source-of-funds attestation): required at this price tier

Local filing requires

Beneficial ownership for every member with a 25%+ governance share or equivalent token holding
Smart contract disclosure forms: addresses of governance contracts and treasury wallets

The honest note: The Marshall Islands agent's KYC is substantive. They are the regulated entity in the jurisdiction and take that role seriously. Plan to provide ID and a clear description of the DAO's purpose. Anonymous formation is not available for this SKU.

Banking compatibility

Where Marshall Islands entities bank

Primary US (tech)Serves DAOs but is selective. Non-MSB DAOs with clear treasury policy approve more often.

Bitcoin-native bankHolds BTC + USD; ideal for DAOs with Bitcoin treasury.

Offshore fallbackUsed for DAOs that the US rails reject. Crypto-tolerant for treasury accounts.

Banking for DAOs is harder than for traditional LLCs. We surface all three options on the post-formation flow and route based on your treasury composition. See the Banking page for named rails.

Full banking ranking

Case for / case against

When this jurisdiction is right (and wrong)

Case for

If you're a DAO with on-chain governance and you want a sovereign legal entity that recognizes that governance natively, not a workaround that maps to traditional LLC mechanics, Marshall Islands is the answer. The statutory language was written with DAOs in mind, not retrofitted.

If your core contributors face personal-liability exposure under common-law agency or partnership doctrines, wrapping the DAO in a recognized entity removes that exposure. This is the primary risk-management driver for most MI DAO formations.

If you're issuing a governance token or operating a protocol treasury and need a counter-party-acceptable legal form for service agreements (with auditors, contractors, custodians), the MI DAO LLC gives you that without forcing the DAO into a centralizing wrapper like a Delaware C-Corp. The ownerless Cayman Foundation Company is the institutional-tier alternative when counterparties expect Cayman paper.

Case against

The licensed agent is the only agent. There is no competitive market. Pricing is set by a sole-source provider and is meaningfully higher than Wyoming's DAO LLC SKU.

DAO LLC structure is still legally novel. Case law is thin. If your DAO faces litigation in a non-MI forum (most US courts, EU courts), the structure may be respected; or it may not. We can't tell you which. Talk to crypto-litigation counsel before relying on the structure for serious liability shielding.

FAQ

Common Marshall Islands questions

Why is MI the only option for a DAO LLC?

Marshall Islands' DAO LLC Act of 2022 is the only national statute explicitly recognizing DAOs as legal persons. Wyoming has a DAO LLC statute but US tax treatment is less DAO-friendly and Wyoming case law is centralizing. Switzerland, Cayman, BVI have similar conversations but no equivalent statute.

What is the registered agent's role?

The licensed agent files your Articles of Organization, maintains the registered office, and handles ongoing statutory compliance. They are not your lawyers or your treasurer.

Do I need KYC even though I'm a DAO?

Yes. The Marshall Islands agent collects beneficial-owner information from members holding 25%+ governance power. There is no anonymous DAO LLC option.

Can I bank a MI DAO LLC?

The major US tech-banking rail accepts MI DAO LLCs case-by-case. Our Bitcoin-native rail is the fallback for DAOs with BTC treasury. An offshore rail covers DAOs that the US options reject. None of these is guaranteed approval. Bank onboarding is harder for DAOs than for traditional companies.

What's the total Year-1 cost?

$13,999 covers the Marshall Islands government registration, first-year licensed registered agent, and OffshoreGuy service. Year-2 onward is approximately $4,999/yr for the agent renewal.