A commercial code, through its set of laws and regulations, facilitates commercial transactions in a given jurisdiction and sets forth a number of conditions and standards that are to be observed by market participants.
The Commercial Code in the Cayman Islands is not a single, unified law, rather a collection of provisions from different laws and regulations that have to do with the manner in which companies are owned and used for various business purposes.
Cayman Islands company formation
is one of the most important aspects that need to be treated in relation to foreign investments. The location is a popular offshore center, however, for the purpose of doing business, the law clearly distinguishes between onshore and offshore business activities and limits business activities within the Islands according to the chosen type of company. This distinction is perhaps the most important element when discussing the main principles of the commercial law.
Our team of Cayman Islands incorporation agents highlights the main laws and regulations that need to be taken into consideration from a commercial standpoint. Investors who have further questions can reach out to us for more detailed answers.
Laws and regulations in the Cayman Islands
The laws that are relevant form a commercial point of view, that impact the manner in which businesses may be formed and may operate, are listed below by our Cayman Islands company formation agents
- Companies Law: includes information about the constitution and incorporation of companies, the distribution of capital and the liability of company members as well as the winding up of companies.
- Banks and Trust Companies License Applications Regulations: relevant for investors who are interested in commencing commercial activities related to banking; includes information about the various types of licenses and their fees.
- Directors Registration and Licensing Law: information about the role of registered directors, corporate directors, powers and duties.
- Insurance Law: regulates commercial activities in the insurance sector; contains information about licensing and the duties of the licensees.
- Money Services Law: regulations for those engaged in commercial activities related to currency exchange, money transmission, cheque cashing and others.
- Mutual Funds Law: the regulations on the licensing requirements for those companies that provide services related to mutual fund management.
- Securities Investment Business Law: the regulation of securities investment businesses, licensing and conditions for these types of companies.
Investors should keep in mind that this is only a brief description of the provisions set forth as to the manner in which commercial activities may be undertaken in the Cayman Islands. Other laws and regulations are also relevant when discussing commercial activities and our Cayman Islands incorporation agents can provide more details on these.
The Cayman Islands Monetary Authority
is a key authority operating under the Monetary Authority Law that maintains the Island’s position as a financial center. Registration with the Authority is mandatory for many of the commercial activities undertaken by locally registered companies.
Foreign investment in the Cayman Islands
As duly noted above, an important distinction for commercial activities lies in those actives undertaken within and outside the Islands. More specifically, most investors interested in open an offshore business. In this case, they will be prohibited from offering their services within the Islands.
Fast incorporation: a Cayman Islands exempted company can be incorporated in just a few steps; with our help, the process is extremely straightforward.
Flexibility: an exempted company, the ones used for offshore business purposes, is also a flexible structure that allows for simple management and control.
Taxation: there is no direct taxation imposed in the Cayman Islands; there are no taxed on corporate profits or personal income and capital gains.
Confidentiality: the Islands allow for a high degree of commercial confidentiality; the register is not available for public inspection.
The Cayman Island’s popularity is also reflected by the number of incorporated companies, as seen below:
- 13,893 new exempted companies registered in 2018.
- 11,138 exempted companies registered in 2017.
- 15 non-resident companies registered in 2018.
- 729 new resident companies registered in 2018.
For more information on Cayman Islands company formation
and the applicable laws, please contact us