The Cayman Islands
are a British Overseas Territory in the western Caribbean Sea. They are known as a beach paradise but also for their attractive regime for offshore companies. Because the official language is English, investors from the United States but also those from other international destinations find it convenient to base their company here. What’s more, the Islands are also politically stable and considered a safe location to do business.
The local regulatory regime for companies and the financial services industry is a developed one, and the main features regarding taxation have made the Islands famous for being not only a natural paradise but also a “tax haven”. We describe some of the main reasons why investors can choose the Cayman Islands for company formation.
The Cayman Islands exempted company
is usually the preferred business form. However, it is not the only type of company available for registration. Below, our experts answer some of the common questions international investors may have about opening a company in the Cayman.
What are the main reasons to choose a Cayman Islands company?
Companies in the Cayman Islands can be used either for trading in the Islands or for trading outside of this jurisdiction. The ones that are advantageous for foreign investors are the ones concerned with solely trading outside of the Islands. An important feature for investors is to remember that according to the Companies Law, offshore legal entities incorporated here are expressly prohibited from trading within the Islands. They are only allowed to carry out the business outside the jurisdiction. This means that it can open a bank account and sign contracts in the Islands but it must engage in its business operations outside of this location. For example, an exempted company must conduct only offshore business.
Below, we list the most important features of the offshore company in the Cayman Islands:
• Fast incorporation: the overall company formation process is a simple one and investors only need to follow a few steps.
• Easy incorporation: the company can be incorporated by a single shareholder who can also act as a single director.
• Flexibility: the company can be used for numerous business purposes and the company directors are not required to be residents.
• Privacy: another important feature is that the Islands allow for a high degree of investor privacy by not making the company documents publicly accessible.
• No taxation: perhaps the most important feature is that these companies are not subject to taxation, no corporate income tax, capital gains or withholding taxes.
Investors interested in setting up a company in the Cayman Islands
have another advantage deriving from the fact that there are no taxes for companies. There are no requirements for annual reporting or auditing for these companies. Moreover, there are no requirements for having to pay a minimum authorized capital when incorporating the legal entity.
What are the requirements for company formation in the Cayman Islands?
The regime for companies is a light one, both in terms of incorporation requirements and, most importantly, in terms of taxation. Nevertheless, investors need to observe a few key points for Cayman Islands incorporation.
Having a Cayman Islands registered agent
and a registered office are two important requirements. These can be included in the company formation packages, like those offered by our agents. We discuss this option below.
How fast can you incorporate a company in the Cayman Islands?
The incorporation process can take as little as one day in those cases where the company founders provide all of the needed documents for incorporation immediately and they work with a team of agents specialized in company formation in the Cayman Islands
. The time needed to open a company can vary when the investors take time to reserve a company name and when the preparation of the Articles of Association takes more time. An alternative is to purchase a ready-made company, which can start trading right as the transfer papers are completed.
Can investors obtain assistance for Cayman Islands company formation?
Foreign investors can request specialized services for company formation as well as for company registered office and registered agent. Our team specializes in the incorporation of offshore companies and provides complete assistance to investors worldwide.
Our team of Caymans Islands company formation agents can help investors open a company as fast as possible and in compliance with the requirements set forth in the Company Law.
for more information about our services.