The most common entity in the Cayman Islands is the exempted company similar in characteristics to the International Business Company (IBC) in the British Virgin Islands, Bahamas, Anguilla, etc. It may not do business in the Caymans or with Caymans residents but may do business everywhere else the world. There is no income, capital gains or other taxes other than the annual franchise tax and no annual accounting requirements.

As with most IBCs, the exempted company must maintain a registered agent/registered office in the Caymans.

Benefits of a Cayman Company

In addition to the speed of processing, other advantages of registering a company in the Cayman Islands include the following:

  • Complete absence of direct taxation – no corporation, capital gains, payroll, property or withholding taxes – and this can be backed by a 30-year Government guarantee.
  • Anonymity – there are well-established mechanisms for cooperation with law enforcement agencies, both locally and overseas, to assure the highest standards of probity throughout the Islands’ financial industry. Within this framework, protection of the legitimate interests of clients is safeguarded. Except where assistance to law enforcement agencies is mandated or authorized, disclosure of information by government officials, professional agents, attorneys and accountants and their staffs is forbidden by law under severe penalties.
  • Minimal reporting requirements.
  • Ready availability of investment, legal and other advice and good management services at prices competitive with those in other offshore centres.
  • Ability to form a company with only one shareholder, with no minimum capitalization requirements.

Corporate Features

General

  • Type of Company

Exempt

  • Type of Law

Common

  • Shelf company availability

Yes

  • Our time to establish a new company

2 days

  • Corporate Taxation

Nil

  • Double Taxation Treaty Access

No

  • Share capital or equivalent
  • Standard currency

US$

  • Permitted currencies

Any

  • Minimum paid up

US$1

  • Usual authorised

US$50,000

Directors

  • Minimum number

One

  • Local required

No

  • Publicly accessible records

No

  • Location of meetings

Anywhere

Shareholders

  • Minimum number

One

  • Publicly accessible records

No

  • 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 / Licence Fee

US$854

  • Annual Return Filing Fee

US$250

Other

  • Requirement to file annual return

Yes

  • Change in domicile permitted

Yes

Incorporation

For Exempt Companies by submission of the Memorandum and Articles of Association and registration fee to the Registrar of Companies, together with a sworn statement declaring that the business activities of the proposed company will be undertaken mainly outside the Cayman Islands. The names and addresses of the proposed first directors must be disclosed to the Registrar.

Restrictions on Trading

Cannot trade within the Cayman Islands, own real estate in the Cayman Islands. Cannot undertake the business of banking, insurance business or mutual fund business unless licensed. Cannot solicit funds from the public.

Powers of Company

A Cayman Islands Exempt company has all the powers of a natural person.

Language of Legislation and Corporate Documents

English. An Arabic language facility was enabled in 2007.

Registered Office Required -Yes, must be maintained in the Cayman Islands.

Shelf Companies Available – Yes.

Time to Incorporate – Two days.

Name Restrictions

Bank, insurance, assurance, reinsurance, trust, municipal, charter, co-operative, their foreign language equivalents or any name that, in the opinion of the Registrar, would suggest a connection with a Royal family or Government authority.

Language of Name

Names can be expressed in any language using the Latin alphabet, Chinese or Arabic, if the Registrar of Company receives a translation thereof. The corporate documents will however be in English.