Background
The Cayman Islands were once part of the British Empire as a colony and then became a British Overseas Territory. English common law has always been the standard for its judicial system. Many people know the Cayman Islands as a tax haven because it has no income taxes. The Cayman Exempted Company has become a very popular choice for foreign businesspeople to hold offshore bank accounts because of the privacy and Cayman tax-free benefits.
Cayman Islands corporations operate under the Companies Law of 1961. Their corporate laws attract international business and numerous offshore investors choose to incorporate in their jurisdiction.
Incorporating in the Cayman Islands is attractive to many as it is simple and fast. This is because it has a very developed and stable economy. This includes support from trust companies, lawyers, banks, insurance managers, accountants, administrators, and mutual fund managers. Furthermore, companies can find local support services to aid them.
Incorporation Process and Timeline
| Limited Liability Company | Exempt Company | Resident Company | Foreign Company | Cayman Islands Foundation | |
| Minimum number of directors | 1 | 1 | 1 | 1 | 1 |
| Minimum number of shareholders | 1 | 1 | 1 | 1 | 1 |
| Local Presence (director/ shareholder/ officer) | No | No | Yes | No | No |
| Maximum Foreign Shareholding | 100% | 100% | 0% | 100% | 100% |
| Physical registered office address requirement | Yes | Yes | Yes | No | Yes |
| Minimum Paid Up Share Capital | USD 1 | USD 1 | USD 1 | USD 1 | USD 50,000 |
| Incorporation Timeline | 1 week | 1 week | 1 – 2 weeks | 1 – 2 weeks | 1 – 2 months |
| Public Register of Shareholders and Directors | No | No | Yes | Yes | No |
| Regulator | Cayman Islands General Registry | Cayman Islands General Registry | Cayman Islands General Registry | Cayman Islands General Registry | Cayman Islands General Registry |
Taxation and Accounting
| Limited Liability Company | Exempt Company | Resident Company | Foreign Company | Cayman Islands Foundation | |
| Corporate Tax | 0% | 0% | 0% | 0% | 0% |
| Auditor Requirement | No | No | No | No | No |
| VAT Payable | No | No | No | No | No |
| Capital Gain Tax | 0% | 0% | 0% | 0% | 0% |
| International Currency Control on Remittance | No | No | No | No | No |
Others
| Limited Liability Company | Exempt Company | Resident Company | Foreign Company | Cayman Islands Foundation | |
| General Activity | International Trading | International Trading | International Trading | Investment/ Trading | Wealth Management |
| Economic Substance Requirement | Depends on business nature | Depends on business nature | Depends on business nature | Depends on business nature | Depends on business nature |
| Government Contracts Entitlement | Yes | Yes | Yes | Yes | Yes |
Corporate Bank Account
| Limited Liability Company | Exempt Company | Resident Company | Foreign Company | Cayman Islands Foundation | |
| Corporate Bank Account Available | Yes | Yes | Yes | Yes | Yes |
| Bank Account Opening Timeline | 2 – 4 months | 2 – 4 months | 2 – 4 months | 2 – 4 months | 2 – 4 months |
Cayman Islands offers the following benefits:
- Straightforward and fast incorporation
The incorporation process can be done within the week as there is no requirement for government regulatory authority approval.
- Whitelisted
The Cayman Islands are a British Overseas Territory and follows international tax regulations, unlike the usual “tax havens”. This allows them from being placed in the offshore blacklist by the Financial Action Task Force and the international organisation.
- Financial Assistance
There is no statutory prohibition on an exempted company providing financial assistance with regard to the acquisition of its own shares. The directors of the exempted company owe a fiduciary duty to the company to act in good faith in the best interests of the company in agreeing to provide the financial assistance.
- Taxation
A shareholder is not subject to Cayman Islands taxes with respect to any distribution received from the company (including dividend and other distributions upon liquidation of the company) or with respect to any gain realised upon the sale, redemption or exchange of shares. There is no withholding of taxes with respect to any dividend or other distribution made to a shareholder on the sale, exchange or redemption of shares. No gift, estate or inheritance taxes will arise in the Cayman Islands on the transfer of shares by way of gift by, or on the death of, a person who is not a resident of the Cayman Islands.
- Business condition
The development of the Cayman Islands as an international financial centre has led to a sophisticated business environment with a full range of services including banks, trust companies, lawyers, accountants, insurance managers, mutual fund managers and administrators, and all the expected support services. There are currently more than 100 trust companies maintaining their own office in the Cayman Islands.
- Mergers
Mergers with other corporations from Cayman Islands or other jurisdictions are allowed
Cayman Islands Company Registration Guide
General Registry (Cayman Islands) develops and implements policies and systems for all registers including those for companies, partnerships, trusts, patents and trade marks..
The Cayman Islands Monetary Authority (CIMA) is the primary financial services regulator of the Cayman Islands and supervises its currency board.The CIMA manages the Cayman Islands currency, regulates and supervises financial services, provides assistance to overseas regulatory authorities and advises the Cayman Islands government on financial-services regulatory matters.
Enigmatig Services in Cayman Islands
With more than a decade of experience, our team at Enigmatig is here to meet your business needs beyond just company formation. We also provide the following services in Cayman Islands:
- Company formation
- Assistance in Business Management
- Corporate Management advisory
- Provision of registered agent and registered address
- Provision of company management, directorship, and shareholding services
- License application assistance
- Onshore/ Offshore bank account introductions and applications
- Virtual office services and other corporate services
- Nominee services
Application Process:
- Submit your interest here
- Our Offshore Formation Specialists will reach out to you for an in-depth discussion
- A customised proposal will be sent to you upon uncovering your needs,
- Upon the proposal confirmation, we will require the of the following information for the application
- Proof of Identity
- Proof of Residence (within the last 3 months)
- director(s),
- shareholder(s) and
- beneficial owner(s)
Once the above has been approved, we will send you an invoice for payment.
The incorporation process will commence upon receiving payment
Enigmatig deals directly with the authorities instead of the use intermediaries in your application process. In this way, we are able to ensure our prices remain competitive while you are ensured of utmost privacy and care in your application.