Marshall Islands (MH)
A remote Micronesian atoll nation using USD, with English as an official language, a Compact of Free Association relationship with the United States, high imported-goods costs, limited medical capacity, and relocation risks centred on immigration status, housing supply, land tenure, health evacuation, and outer-island logistics.
Capital: Majuro
Region: Oceania
Language: Marshallese
Currency: USD ($)
Cost of living: Moderate (index 58)
Emergency: 911 / 625-8666
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Business Setup
Start a business or go freelance in Marshall Islands.
🧑💻 Freelancer / Self-Employed Guide
Steps to register:
- 1 1. Confirm your visa or immigration status permits local work or self-employment. Visitor stays (visa-on-arrival or visa-free) do not authorise freelance or commercial activity in RMI.
- 2 2. Register the business with the Division of Revenue and Taxation (DRT) in Majuro. Obtain a business licence before billing local clients.
- 3 3. Obtain any required municipal, sector, or professional licence from the RMI government agencies relevant to your activity.
- 4 4. Open a bank account at Bank of Marshall Islands (BOMI) or another local bank. Bring registration documents, passport, and source-of-funds documentation — KYC requirements are thorough.
- 5 5. Register for gross revenue tax obligations with DRT if conducting taxable commercial activities in RMI.
- 6 6. Register with MISSA (Marshall Islands Social Security Administration) if hiring employees or meeting self-employed contribution thresholds.
- 7 7. Set aside gross revenue tax (current rate: contact DRT for applicable rate) and MISSA contributions from each invoice received.
Tax registration
Register with the Division of Revenue and Taxation (DRT) before billing local clients. RMI does not have a personal income tax in the conventional sense — gross revenue tax applies to business turnover. Remote-only income from foreign clients should still be reviewed for RMI source-income rules and home-country tax obligations.
VAT threshold
RMI does not have a VAT system. The applicable taxes are gross revenue tax on business income and wage tax on employment income. Contact DRT for current rate schedules and applicable thresholds.
Invoicing
Invoices should include: legal business name, local business address, tax/business registration number, USD amount, description of services, client details, invoice number, date, and payment terms. Retain copies for bank KYC verification and DRT tax audits.
Social security
MISSA (Marshall Islands Social Security Administration) contributions apply to wages paid to employees: employee share 8% + employer share 8% of wages. Self-employed individuals may have MISSA obligations on reported gross revenue — confirm contribution requirements with MISSA before assuming exemption.
💡 The Marshall Islands is a small, relationship-based market. Do not rely on visitor status to freelance locally. The non-resident corporation route (via RMIMCA) is popular for international shipping and holding structures but does not grant local residency, work rights, or tax simplification for individuals. All contracts should address payment timing, import/logistics delays, scope creep, and dispute resolution venue. The USD is the official currency.
🏢 Business Structures
Sole Proprietorship · Sole Proprietorship / Individual Business
Sole trader
No statutory minimum; business licence and local permits required
Min. capital
1–4 weeks (business registration with Division of Revenue and Taxation + municipal licence)
Setup time
Liability: Unlimited personal liability — owner personally responsible for all business debts
Setup cost: USD 50–500+ (business licence fee + municipal registration + sector-specific permits)
Best for: Small local services, consultants with valid work authorisation, and low-risk owner-operated activities. Not available to visitors without work permission.
Partnership · General Partnership
General partnership
No minimum capital required
Min. capital
2–6 weeks (registration + legal documentation)
Setup time
Liability: Partners have joint and several personal liability for all partnership obligations
Setup cost: USD 300–2,000+ (registration + legal drafting of partnership agreement)
Best for: Professional or family ventures with 2+ trusted partners with documented exit rules. A written partnership agreement is strongly recommended.
Domestic Corporation · Marshall Islands Domestic Corporation
Domestic limited company
No common small-business minimum; capitalisation should match licence and bank requirements
Min. capital
2–8 weeks (registration + bank KYC)
Setup time
Liability: Limited to company assets if corporate formalities are properly maintained
Setup cost: USD 500–3,000+ (registration fees + local legal/accounting support)
Best for: Local trading, services, fisheries support, construction, education, and employer-sponsored activity. The standard local business vehicle for most operations.
LLC · Marshall Islands Limited Liability Company
Limited liability company
No minimum capital requirement
Min. capital
1–6 weeks for formation; bank account opening can take additional weeks due to KYC
Setup time
Liability: Limited liability for members; governed by the operating agreement
Setup cost: USD 800–4,000+ (varies by resident/non-resident structure and professional support)
Best for: Flexible owner-managed businesses, consulting, and holding structures. More flexible governance than a corporation. Legal advice strongly recommended for operating agreement.
Non-Resident Corporation · RMI Non-Resident Corporation (via RMI Maritime and Corporate Administrators)
International business company-style corporation
Varies by structure and registered agent requirements
Min. capital
Days to weeks for entity formation; bank account KYC can take considerably longer
Setup time
Liability: Limited liability; does not confer local residency or work rights
Setup cost: USD 1,000–5,000+ via RMI registered agent (RMIMCA)
Best for: Shipping, holding structures, and international corporate structures. Widely used for flag-of-convenience vessel registration. Requires professional tax and legal advice — not a substitute for proper work authorisation.
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