Cayman Islands

Introduction

The Cayman Islands, which comprises of three islands in the Caribbean Sea south of Cuba, is a British Dependent Territory that was originally discovered by Christopher Columbus. The financial services sector is one of the main industries in the Cayman Islands, and there is a substantial commitment to the continued development of the offshore financial services industry. The reputation and popularity of the Cayman Islands have increased significantly, particularly in Asia, as it is one of the offshore centres that is approved by the Hong Kong Stock Exchange for public listings in Hong Kong. The Cayman Islands established its own Stock Exchange in 1997.

The Cayman Islands Companies Law governs the operations of the Cayman Islands Exempted Company.

Features and Advantages

  • All documents and legislation are in the official language of English
  • Minimum number of director and shareholder is one. They can be of any nationality and no need to reside in the Cayman Islands
  • There is a currently no corporation, property, capital gains or withholding taxes. This legislation is backed by a 20-year government guarantee (rising to 30 years on application) enabling long term business planning
  • There is no minimum capital requirement for a Cayman Island Company formation
  • There are no annual auditing requirements for an Offshore Cayman Islands Company
  • Widely used as a listing entities in major stock exchanges around the world
  • Comparing to other jurisdictions, it is easier to find Cayman Islands lawyers in any other countries, even in Asia.
  • A well known jurisdiction to use for establishing corporate bank accounts
  • Chinese names are permitted and can be included on a company’s Certificate of Incorporation.
  • Filing of Economic Substance Notice and Annual Return are required
  • Companies conducting certain activities in the Cayman Islands are required to comply with the Economic Substance requirements

Summary

Type of Company
Exempted Company

Time to Incorporate
7 working days

Disclosure of Director / Shareholder / Beneficial Owner Information
Copy of the Register of Directors and information of beneficial owners must be filed with the Registrar of Companies.

Information of director is for inspection by any person, on payment of the fee. Shareholders and beneficial owners information is not accessible publicly.

Taxation
Nil

Minimum Director
At least 1 director who can be natural person or corporate body

Minimum Shareholder
At least 1 shareholder who can be natural person or corporate body

Audit Requirement
No audit requirement for accounts

Filing of Accounts
Required to prepare accounts but the accounts are not accessible publicly

Filing of Annual Return
Mandatory

Economic Substance
Companies conducting certain activities in the Cayman Islands are required to comply with the Economic Substance requirements

The information in this article is of a general nature only. We have made every effort to ensure that the information included herein is up-to-date and accurate, we do not accept any responsibility for any inaccuracy, errors or omission. We strongly recommend that applicable professional advice be taken prior to purchasing any company.

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