The Cayman Islands provide a highly regulated, internationally acknowledged, tax-neutral offshore business climate which is dynamic and responsive, with more than 90,000 active companies being registered in this jurisdiction.
Types of legal entities in the Cayman Islands
A company in the Cayman Islands can be set up under the form of a sole trader, a partnership or a limited company. Foreign companies are also able to form a branch here so that they can operate on the domestic market.
The main differences between these legal entities is that sole traders and general partners have unlimited liability towards third parties when doing business with them.
At the same time, the shareholders of a company generally have limited liability towards third parties which are doing business with the company.
Advantages of setting up a company in the Cayman Islands
Setting up a Cayman Islands company has numerous advantages, among which we mention:
•When appropriately structured, a company which is set up here can legally attain international income and minimize international taxation;
•There are no annual requirements to audit or report accounts;
•To effectuate a Cayman Islands company incorporation, only one shareholder and one director are needed. The shareholder and director can be the same individual or a legal entity, and the company can be owned 100% by a foreign citizen;
•There is a complete lack of direct taxation which can be sustained by a 20-year government guarantee against the taxation introduction. To obtain this guarantee, the business owner has to apply for a tax exemption certificate. This implies that there are no corporate taxes, no capital gains taxes, no payroll taxation, no real estate taxes and no withholding taxes. It is important to note, though, that the tax exemption certificate is only available for exempted businesses;
•After the Cayman Islands exempted company registration, the business can be managed from any country outside of the Islands.
If you have further questions about the Cayman Islands company incorporation procedures, please do not hesitate to contact our staff.
Call us now at +44 203 287 0408 to set up an appointment with our lawyers in George Town. Alternatively you can incorporate your company without traveling to Cayman Islands.
As a BridgeWest client, you will benefit from the joint expertize of local lawyers and international consultants. Together we will be able to offer you the specialized help you require for your business start-up in Cayman Islands.