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Excluded Person Financial Company in Cayman Island

Updated on Sunday 24th March 2019

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Excluded-Person-Financial-Company-in-Cayman-Island.jpgThe excluded person financial company in the Caymans Islands is a business entity that is subject to most of the requirements of the exempted company, only that the regulations will be different in terms of licensing for performing some types of activities. The “Excluded Persons” regime means that they are exempted from applying for and obtaining a license for securities investment businesses, for example.
 
A Cayman Islands exempted company is a legal entity that offers a number of advantages to foreign investors who wish to conduct trading activities or use is as an overseas investment vehicle. However, exploring all of the options for conducting business in the Cayman Islands is recommended, as some entrepreneurs may find that the excluded person financial company is more suitable to their overseas trading when dealing in securities.
 
Our team of Cayman Islands incorporation agents can help investors set up the needed type of company, and comply with the requirements set forth by the Securities Investment Business Law.
 

Main characteristics of the excluded person financial company

 
The Excluded Person Financial Company can be used based on Schedule 4 of the Securities Investment Business Law and it targets investors who are engaged in securities investment businesses. these entrepreneurs are exempted from the licensing requirements when they register with the Monetary, Regulatory and Advisory Body of the Cayman Islands (CIMA). This type of company has the following main characteristics:
 
  1. Ordinary requirements: the requirements applicable to the excluded person financial company are the same as in the case of the Cayman Islands exempted company.
  2. Declaration: the applicants are considered an exempted person if they submit the aforementioned application with the CIMA and it is approved.
  3. Annual fee: an annual fee applies for the purpose of registration as an excluded person and a fee payable on the first grant is also included.
  4. Acceptance: in order to receive the approval, the applicant must be considered fit for fulfilling his role as a license holder under Law.
 
Some of the main criteria taken into consideration are the following: if the applicant is able to comply with the applicable laws and regulations, including the money laundering regulations. The decision will also be made based on whether or not the applicant has the skills and knowledge for the business, along with the necessary books and records and the senior staff who can be engaged in the functioning of the business. In some cases, an on-site inspection can take place. The applicant should be notified within seven days of the decision. This decision is issued in writing and is effective.
 
One of our Cayman Islands company formation agents can help interested investors make the necessary submissions with CIMA and handle the subsequent annual requirements.
 

Cayman Islands company formation

 
Setting up a Cayman Islands company is a simple process that can be further facilitated by our team of experts. As long as the company founders follow the main regulations for doing business (not engaging in business in the Cayman Islands, with resident entities or individuals), the general requirements are light and investors enjoy multiple advantages, starting with exemption from corporate taxation.
 
Some of the main advantages of doing business in this jurisdiction include the following:
  • - Financial and banking center: the location is well-established as a financial center and it is a popular location for registering investment funds.
  • - No taxation: there are no applicable taxes on the legal entities incorporated here, not on the trusts of investment funds.
  • - British overseas territory: the fact that the Islands are a British overseas territory gives them political and economic stability.
  • - Language: English is the most commonly spoken language, another important advantage for international investors.
  • - Connectivity: a company based in the Cayman Islands will be well connected to the Americas but investors here will also be able to operate their international businesses in Asia or Europe.
 
Our team of Cayman Islands incorporation agents can give you further details on the key advantages of opening an offshore company in this jurisdiction. We can assist in the formation of an excluded financial company as well as the other available business forms.
 
Contact us for complete details about the services we provide.
 

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