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Cayman Islands in Offshore

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Cayman Islands in Offshore

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Cayman Islands Company Registration

Cayman Island Offshore Company Formation

Key Corporate Features

General

  • Type of entity: Exempt
  • Type of law: Common
  • Shelf company availability: Yes
  • Our time to establish a new company: 2 days
  • Minimum government fees (excluding taxation): US$854
  • Corporate taxation: Nil
  • Annual Return Filing Fee US$250
  • Double taxation treaty access: No

 

Share Capital Or Equivalent

  • Standard currency: US$
  • Permitted currencies: Any
  • Minimum paid up: US$1
  • Usual authorised: US$50,000

 

Directors Or Managers

  • Minimum number: One
  • Local required: No
  • Publicly accessible records: No
  • Location of meetings: Anywhere
  • Members Minimum number: One
  • Publicly accessible records: No
  • Location of meetings: Anywhere

 

Company Secretary

  • Required: No
  • Local or qualified: No

 

Accounts

  • Requirement to prepare: Yes
  • Audit requirements: No
  • Requirement to file accounts: No
  • Publicly accessible accounts: No

 

Other

  • Requirement to file annual return: Yes
  • Change in domicile permitted: Yes

 

 

General Information

The Cayman Islands consists of a group of three islands in the Caribbean: Little Cayman, Cayman Brac and Grand Cayman. The main Island, Grand Cayman, is situated approximately 480 miles southeast of Miami.

 

Population

The population is approximately 50,000.

Political Structure

The Cayman Islands are a British colony and therefore the United Kingdom Parliament at Westminster retains the right to legislate. A "Governor" who is appointed by the Queen Elizabeth II heads the Cayman Islands Government. There is a Legislative Assembly consisting of 18 seats: 3 appointed members from the Executive Council (Financial Secretary, the Attorney General and Administrative Secretary) and 15 members elected by the popular vote.

An Executive Council, consisting of three official members appointed by the Governor and four members elected by the Legislative Assembly, formulates policy and advises the Governor. Appointments are to a four-year term;

Infrastructure And Economy

The economy of the Islands is strong, enjoying full employment with most of the revenue being derived from the financial services sector and tourism (70% of GDP).


Miami is one hour away by air and the Island has direct air links with New York, Atlanta, Tampa, Houston and Jamaica. The Islands are a popular cruise-ship stop.

Language

The official and spoken language is English

Currency

Caymanian Dollar

Exchange Control

None

Type Of Law

Common Law based on English Common Law

Principal Corporate Legislation

The Company Law of the Cayman Islands is based on the English Companies Act of 1948 and can be found in the Cayman Islands

Companies Law (2007 Revision).

Companies Law (2009) Revision

Companies (Amendment) (No 2) Law 2009

Companies (Amendment) Law 2010


Company Information

Procedure To Incorporate

 

For Exempt Companies by submission of the Memorandum and Articles of Association and registration fee to the Registrar of Companies, together with a sworn statement declaring that the business activities of the proposed company will be undertaken mainly outside the Cayman Islands. The names and addresses of the proposed first directors must be disclosed to the Registrar.

Restrictions On Trading

Cannot trade within the Cayman Islands, own real estate in the Cayman Islands. Cannot undertake the business of banking, insurance business or mutual fund business unless licensed. Cannot solicit funds from the public. Please check about SIBL information below on this report..

Powers Of Company

A Cayman Islands Exempt company has all the powers of a natural person.

Language Of Legislation And Corporate Documents

English. An Arabic language facility was enabled in 2007.

Registered Office Required

Yes, must be maintained in the Cayman Islands.

Shelf Companies Available

Yes.

Time To Incorporate

5 to 7 working days.

Name Restrictions

Bank, insurance, assurance, reinsurance, trust, municipal, charter, co-operative, their foreign language equivalents or any name that, in the opinion of the Registrar, would suggest a connection with a Royal family or Government authority.

Language Of Name

Names can be expressed in any language using the Latin alphabet, Chinese or Arabic, if the Registrar of Company receives a translation thereof. The corporate documents will however be in English.

Names Requiring Consent Or License

Bank, building society, savings, loans, insurance, assurance, reinsurance, fund management, asset management, trust, trustees or their foreign language equivalent.

Suffixes To Denote Limited Liability

There is no requirement to utilise a suffix to denote limited liability, although normally companies are incorporated to include the suffixes Limited, Incorporated, Corporation or their abbreviations.

Disclosure Of Beneficial Ownership To Authorities

No requirement

Compliance

 

Authorised And Issued Share Capital

The minimum is US$1, but it is normal to incorporate with an authorised share capital of US$50,000; divided in to 50,000 common voting shares of US$1, this being the maximum for the minimum capital duty payable to the Registrar of Companies. The minimum issued share capital is one share of no par value or one share of part value.

Classes Of Shares Permitted

Registered shares of par or no par value, preference shares, redeemable shares and voting or non-voting shares.

Taxation

There is no form of taxation in the Cayman Islands relating to individuals, corporations or trusts.

Double Taxation Agreements

The Cayman Islands has no double tax agreements.

License Fees

For exempt companies:

with a share capital not exceeding US$50,000: US$854

with a share capital greater than US$50,000 but not exceeding US$ 1 million: US$1220

with a share capital greater than US$1,000,000 but not exceeding US $ 2 million: US$2420

Financial Statement Requirements

 

The Companies Law (2010 Revised) states that "Every company shall cause to be kept proper books of account including where applicable, material underlying documentation including contracts and invoices. Such documentation must be retained for a minimum period of five years from the date on which they are prepared". Failure to retain such records shall be subject to a penalty of $5,000.

Unregulated exempt companies do not need to file accounts.

Directors

The minimum number of directors is one. The directors may be natural persons or bodies corporate. The directors may be of any nationality, and need not be resident in the Cayman Islands.

Company Secretary

The Cayman Islands Companies Ordinance does not make any specific reference to a requirement for a company secretary. However, it is customary to appoint one, who may be either a natural person or a body corporate.

Shareholders

The minimum number of shareholders is one.

Principal Corporate Legislation

 

The Company Law of the Cayman Islands is based on the English Companies Act of 1948 and can be found in the

Cayman Islands:

Companies Law 1961

Companies Law (2007 Revision)

Companies (Amendment) (No 2) Law 2009

Companies (Amendment) Law 2010

Companies (Amendment) Law 2011

Content supplied by Atrium Incororporators

 

With over 90,000 companies, and just 20,000 citizens, the islanders are either all serial entrepreneurs, or there are tens of thousands of companies registered in Cayman Islands by foreigners. The latter is true, and this is down to the tax benefits detailed below.

How to register a company in Cayman Islands?

The bad news is that the initial cost of incorporating a company offshore is considerably more expensive in the first instance than to register a company than in some other parts of the world, but the long term benefits often outweigh the initial investment. As a Cayman registered company you donít pay sales or income tax or have to submit accounts and this can this soon makes up for the incorporation costs.

It is fairly straightforward to establish an offshore firm but most corporations and individuals still employ a local firm to help them incorporate their offshore company Ė and then take care of the administration of the company. All of the services which these organisations provide are governed by the Companies Management Law. The locally based firms can offer numerous professional services required for an offshore firm to comply with international financial regulations including registered offices, directors, nominee shareholders and other officers, as well as company management services.

Cayman Islands Taxation

Cayman is one of the world's leading Offshore Financial Services Centres (OFC), the jurisdiction offering huge numerous incentives and opportunities for investment.

Described as a tax neutral jurisdiction no one pays income or corporation tax. No taxes on profits, capital gains, no estate taxes or inheritance duties!

Instead the government raise tax revenue through a variety of other sources, indirect taxes such as import fees. Other revenue comes from the work-permit fees from the huge expatriate workforce, transaction fees paid by those active in the financial services sector, and the fees raised from tourists entering through the port on cruise ships or those staying in local hotels.

All this has lead to a successful and attractive offshore financial industry which has made Cayman one of the wealthiest places in the world with a GDP higher than the United States, Canada, Hong-Kong and the United Kingdom. The Cayman Islands also remain a dependent territory of the United Kingdom meaning a certain degree of political stability.

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