A Cayman Islands Exempted Company is a form of business structure that offers foreign investors a 100% foreign-owned offshore investment vehicle with no tax liabilities.
Cayman Islands company incorporation puts no restrictions on a company’s founders, directors or shareholders; they can be of any nationality and can include individuals and corporations. Very modest annual fees will apply and there are many companies offering corporate services in the Cayman Islands to handle the details.
Forming an Exempted Company in the Cayman Islands can take as little as a day and has numerous other advantages, including:
Minimal international tax exposure: A properly structured Cayman Islands company can legally maximize its worldwide income while at the same time reducing its international taxation exposure to the minimum.
Easy company incorporation: For Cayman Islands company formation, the Registrar of Companies requires only minimal basic information — the company’s approved name, constitutive documents, the types of shares to be issued, authorized capital and a registered office address;
Minimal reporting requirements for companies: There are no annual audits required, or complex and expensive accounting procedures. The only requirement of a Cayman Islands exempted Company is to file an annual return;
Minimum company management requirements: Incorporation of a Cayman Islands company can be achieved with just one shareholder and one director, who can be the same person or company. There is no restriction on the residence or citizenship of individuals or companies setting up the company, meaning it can be 100% foreign-owned;
Tax-free jurisdiction: There is absolutely no direct taxation in the Cayman Islands, and this comes with a government guarantee issued in the form of a tax exemption certificate. Incorporation of a Cayman Islands Exempted Company ensures the company will not be subject to corporate taxes, capital gains taxes, payroll taxes, real estate taxes, or withholding taxes;
Easy management: After registration as a Cayman Islands exempted company the business can be managed from anywhere.
Cayman Islands companies law guarantees a high degree of investor protection, as well as the territory’s well-known tax-free advantages and very low requirements for corporate maintenance. This is possible because while any individual can obtain the address of an exempted company’s registered office from the Registrar, and the office must be clearly marked with the company’s logo or name, there are no legal requirements to publicly release the identities of a company’s shareholders or directors.
Annual filings are mandatory but minimal. The company’s annual returns to the Cayman Islands companies registry are required to declare any changes in the company’s constitution, objectives or name, as well as confirm that the company’s business since the last filing has been conducted for the most part outside the local islands economy, whether with a company or an individual.
