Cayman Islands Offshore Company Formation

Cayman Islands Exempt Offshore Company

Overview of a Cayman Islands Offshore Company

The Cayman Islands, a prominent and reputable offshore company formation center, located on three islands in the Caribbean has a world class legal, banking and financial services network. The Cayman Islands offer six different types of offshore companies, with the Exempt Company having the least restrictions and reporting requirements.

The Islands offer particular advantages to banks, hedge funds and trusts and as a result its offshore banking sector has become the largest in the world with over 600 banks, claims over 85% of the worlds Hedge Funds, and is home to a significant number of leading Trust Companies. The Islands also boast of having several Special Economic Zones and a special business links with China to encourage international investment

The Cayman Islands Company Law dates back to 1961 and is based off the 1921 UK Company Act. There have been four other amendments passed since its inception that have kept the Islands apace with the continually changing nature of the worlds financial system making it a great place to go offshore.

For more information on the Advantages of the Cayman Islands as an Offshore Financial Center, click here.

Advantages of a Cayman Islands Offshore Company

Tax free jurisdiction
No corporate taxes
Availability of Tax Exemption Certificate (TEC) that gives clients a guarantee that their company will not be taxed if in the future the government levies a tax
Single member ownership is allowed
No reporting and financial accounting obligations
Minimal annual return filing requirements
Prestigious banking jurisdiction
Sophisticated financial and banking system
Long standing and renowned offshore banking tradition
No requirements to keep a registry of its members that is open to the public
Flexibility in changings its founding documents ie. Memorandum and Articles of Association
An Exempt Company may offer shares to the public
The Confidential Relationships (preservations) Law 1976 makes it a criminal offences to divulge information to a third party
The government does not supports foreign government ‘fishing’ tax requests
The Cayman Islands have signed a number of tax information exchange agreements with a number of countries in order to retain good relations with trade partners
British Overseas Territory
English speaking country
Quick formation turnaround
Stable political and economic environment
Outstanding commercial, financial and professional services
Excellent communications system
Reliable and competent legal system based off of English Common Law
Cayman Islands has business links with China (Companies are approved to be listed on the HK stock exchange)
Largest offshore banking centre in the world
Cayman Islands government recently enacted a Special Economic Zone (SEZ) to further international investment

Top Uses of an Offshore Company in the Cayman Islands

Own company shares or other legal entities
E-Commerce Companies
Management Companies
Hold bank accounts, financial or commercial titles
Asset Protection
International Hedge Fund
International commercial and financial activities
Ship registration

Key Corporate Features of a Cayman Islands Offshore Exempt Company

Cayman Islands Exempt Company	Corporate Details
General
Type of Entity	Exempt
Type of Law	English Common Law
Governed by	Companies Law 1961 Companies Law 2007 Revision Companies Amendment 2009, 2011, 2013
Registered Office in Belize	Yes
Shelf company availability	Yes
Our time to establish a new company	two business day
Minimum government fees (excluding taxation)	USD $854
Corporate Taxation	No
Access to Double Taxation Treaties	No
Share capital or equivalent
Standard currency	US Dollar
Permitted currencies	Any
Minimum paid up	No minimum
Usual authorized	Any amount (USD $50,000 optimal)
Bearer shares allowed	Yes
No par value shares allowed	Yes
Directors
Minimum number	One
Local required	No
Publicly accessible records	No
Location of meetings	Anywhere
Corporate directorship allowed	Yes
Shareholders
Minimum number	One
Publicly accessible records	No
Corporate shareholder allowed	Yes
Location of meetings	Anywhere
Company Secretary
Required	No
Local or qualified	No
Accounts
Requirements to prepare	Yes
Audit requirements	No
Requirements to file accounts	No
Publicly accessible accounts	No
Recurring Government Costs
Minimum Annual Tax	USD $854
Annual Return Filing Fee	USD $1250
Other
Requirement to file annual return	Yes, minimal requirements
Migration of domicile permitted	Yes

Cayman Islands Company Product Package

Includes:

Government Registration Fee (First year)
Registered Office Address (First year)
Registered Agent Services (First year)
Company Secretarial Maintenance
Certificate of Organisation
Articles of Organisation
Minutes of First Organisers Meeting
Ownership Certificates
Register of Members
FREE Phone and/or email consultations

Requirements For Offshore Company Formation

To Incorporate an Exempt Company in the Cayman Island the following details are needed:

Submission of a Memorandum and Articles of Association
Registration fee
Amount of authorised share capital, number of shares and class of shares
Names and addresses of Director must be disclosed to the Registry
Sworn signed statement that the business activities proposed under the Memorandum will be conducted outside the Cayman Islands
Name of the LLC
Registered address of the LLC
Name and address of the registered agent

Cayman Islands Taxation on an Offshore Company

There are no taxation requirements within the Cayman Islands for Exempt Companies who conduct their business outside of the Cayman Islands. This includes taxes on income, capital gains, profits, dividends, or capital transfers. The Cayman Islands offer a Tax Exemption Certificate (TEC), though there currently are no taxes, this gives clients a guarantee that their company will not be taxed in the future in case there are changes to the existing company tax law.

Corporate Details

Anonymity, Confidentiality and Disclosure

There are no requirements to disclose beneficial ownership nor the details and personal information of shareholders and directors to the public. However the name and details of the director needs to be submitted to the Company Registry upon submission of incorporation documents. All information is held confidential with minimal personal exposure. The use of nominee directors and shareholders are permitted.

Company Shares

A Cayman Islands Exempt Company can issue registered shares with par or no par value, preference shares, redeemable shares, voting and non-voting shares. Bearer shares are also permitted although they must be held by an authorised depository.

Required Capital

The minimum issued share capital is USD 1 and the usual authorized share capital is USD 50,000 normally divided into 50,000 shares which is the maximum amount of shares given for the minimum amount of capital duty.

Financial Statements Required

An Exempt Company does not need to file any accounts, however, it is required that a company keeps appropriate financial records under the Companies (Amendment) Law 2012 which includes contracts and invoices for up to five years.

Directors

The minimum number of directors required for a Cayman Island Exempt Company is one. A director can be a natural person or a body corporate and of any nationality. Directors details and beneficial owners information are not open to the public, however details of the directors must be submitted to the Company Registry upon incorporation though they are held confidentially.

Company Secretary

There are no requirements for a secretary for a Cayman Island Exempt Company, though it is customary to appoint one. A director can be the company secretary.

Company Meetings

There are no requirements that a Exempt Company needs to conduct formal meetings. If they do take place they can take place anywhere in the world, need not be recorded and can be conducted electronically.

Type of Law

The Cayman Islands law is based off of English Common Law

Shareholders

The minimum number of shareholders required for an Exempt Company is one. A shareholder may be a natural person or a body corporate of any nationality and may reside anywhere in the world. Personal details of shareholders are not publicly available and need not be submitted to the Company Registry.

Exchange Controls

There are no exchange controls in the Cayman Island

Powers of the Company

A Cayman Islands Exempt Company has all the powers given to a natural person.

Language of legislation and Corporate Documents

English is the main and official language of the country and all corporate documents are in English.

Registered Office required

Yes a registered office is required for all Exempt Companies.

Local Presence

There are no local requirements for a Cayman Islands Exempt Company except for a local registered office. A registry of the members of the company must be kept at the local office, though the registry is not open to the public.

Audit Requirements

There are no audit requirements for a Cayman Island Exempt Company.

Annual Reporting

Exempt Companies are required to file annual reports. Though the requirements are minimal and consist only of a short statement that the business operations have been carried out outside of the Cayman Islands, (Section 193 of the Companies Law) and that all Bearer shares are held by a custodian.

Language of Name

A company name can be in any language in the Latin alphabet including Arabic and Chinese if a translation is included.

Access to Double Tax Treaties

The Cayman Islands does not have any Double Tax Treaties in place.

Annual Tax for Licence

Licence fee for share capital less than USD 50,000 is USD 854
Companies with a share capital between USD 50,000 and USD 1 million is USD 1,220
Companies with a share capital between USD 1 million and USD 2 million is USD 2,420

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Last updated on 29 August 2020.