Foreign investors who wish to set up a business commonly use the Cayman Islands non-resident company
. This is a type of legal entity that is an alternative to the exempted company and can engage in offshore business transactions as it is not allowed to do business in the Islands. This is an important aspect for those interested in Cayman Islands incorporation
, however, for investors who wish to engage in offshore activities, it does not hinder their purpose.
The non-resident company, also called the ordinary non-resident company is granted a certificate of non-residence by the Registrar of Companies and the Minister of Finance. This document will expressly state the fact that it will not engage in business operations in the Islands.
Investors who wish to change the business form can decide to convert the ordinary non-resident company into a Cayman Islands exempted company.
The main traits of the Cayman Islands non-resident companies
The non-resident company can successfully be used as an offshore holding company (that is to hold shares in other foreign companies) as well as for other business purposes that do not take place on the Cayman Islands territory.
Listed below are the main traits of the Cayman Islands non-resident companies:
- full foreign ownership: this type of company is commonly used by foreign investors particularly because full-foreign ownership is permitted.
- no applicable taxes: like other companies in the Cayman Islands, this is also a business form that is not subject to income taxes.
- limited liability: the shareholders in this type of company are only liable to the extent of the unpaid amount of the owned shares.
- minimal company formation requirements: only one shareholder and one director are required to open this type of business and it can be an individual or a corporation; there is no restriction on the maximum number of shareholders and no restriction on their nationality or that of the directors.
- no minimum capital: this business form is also a preferred one because there are no requirements to submit a minimum capital upon incorporation; however, a capital duty does apply on the issuance of shares.
- fast incorporation: the time needed to open a Cayman Islands ordinary non-resident company is usually three days; when working with one of our agents this process is handled as fast as possible.
These characteristics make the ordinary non-resident company
a business form that can be easily incorporated by investors who wish to engage in offshore activities in the Cayman Islands. What’s more, according to the local privacy laws
, the identity of the beneficial owner is protected, as it is not available publicly. For an increased level of protection, or for those investors who do not wish to make public all of their investments, the option to use a nominee shareholder and/or a nominee director service is available.
Requirements for a non-resident company in the Cayman Islands
The incorporation and the corporate management and reporting requirements for an ordinary non-resident company are simple ones and our team of Cayman Islands company formation agents
details these below:
- registered office: any company, not only the ordinary non-resident one, is required to have a local registered office.
- registered agent: this is a mandatory requirement and any company in the Islands is required to have this agent.
- annual filing: a simple annual return is due in January and it includes information about the company members as well as the paid-up capital amount.
- accounting records and financial statements: there is no need for the annual financial statements and the requirements for maintaining accounting records are permissive, in as that there is no need to keep these in the Islands, they can be stored at any location.
- audit: the ordinary non-resident company is not required to comply with an audit requirement.
- other requirements: one of our agents can give you more information on the fees payable upon registration and the annual renewal fees; general meetings are to be held by shareholders.
The faster and most convenient manner in which a foreign investor can open a non-resident company is by requesting the services offered by our Cayman Islands incorporation agents. We provide complete registration services and the company will be ready for business purposes in the shortest amount of time possible. Our team of specialist can also provide additional registered office services, nominee director and nominee shareholder services.
The Cayman Islands ordinary non-resident compan
y offers a number of benefits, from easy incorporation to the lack of taxes and the simple accounting and filing requirements. You can contact our Cayman Islands company formation agents
if you require specialized assistance for opening this business form.