The Marshall Islands Jurisdiction History and Further Context

The Marshall Islands as a Corporate Jurisdiction

• The Republic of the Marshall Islands (RMI) has long been a prominent jurisdiction for international business and investment companies due to its nominal corporate taxation, limited reporting requirements, and legislation based on Delaware law.

• In addition to being a leading jurisdiction for the shipping industry, over 40 public companies traded on NASDAQ and NYSE are domiciled in RMI.

• Approximately 20% of the world's shipping industry is registered in the Marshall Islands, making it the third largest shipping company incorporator in the world.

The Stability of the Marshall Islands

1. US Affiliation

• The Marshall Islands is a sovereign nation with a seat in the UN, but it has also been a strong ally of the US for over 80 years. Therefore, it gains the economic, geopolitical, and bureaucratic benefits of allying with the US while maintaining a pro-crypto stance—the result: a stable jurisdiction that emerges as a leader in Web3.

2. RMI Legislation

• The Marshall Islands has passed several laws and regulations regarding the DAO LLC with near-unanimous support from the Nitijela, the RMI parliament. This provides additional stability compared to jurisdictions with no crypto-related legislation or overly restrictive regulations.

3. Supportive RMI Administration

• The current administration and elected officials of the RMI see the economic benefits DAOs and MIDAO can bring. They are pro-crypto. Listen to the RMI administration speak with Balaji Srinivasan on his Podcast: https://thenetworkstate.com/episode/cryptoislands.

International Registries Incorporated (IRI), the Other RMI Registrar, aka the Trust Company of the Marshall Islands (TCMI)

• IRI is the shipping registry operating in the Marshall Islands that incorporates traditional offshore entities that aren't Web3-related, such as traditional Corporations, Trusts, and LLCs.

• MIDAO is the sole registered agent for DAO LLCs, and IRI is the sole registered agent for other companies in the RMI. Just as MIDAO cannot create and maintain traditional offshore companies, IRI cannot create and maintain DAO LLCs.

• MIDAO DAO LLCs are technically "Resident" companies, which is achieved thanks to the registered agent office MIDAO maintains in the RMI; the IRI supports only Non-Resident companies.

• The traditional Corporations, LLCs, and Trusts registered by IRI do not get any of the benefits of the Marshall Islands DAO & Web3 laws and regulations.