The Cayman Islands are a British Crown colony consisting of 3 islands in the Caribbean that are approximately 480 miles south of Miami, Florida. The area is about 260 square kilometers and consists of Grand Cayman and the “sister islands” of Cayman Brac and Little Cayman. Grand Cayman, the largest of the three islands, is the only island populated significantly with 58,000 inhabitants, of which approximately 29,000 are residents in George Town, the capital.
Taxation has many advantages for non-residents and offshore companies. This made it possible to place the Cayman Islands as the fifth international financial center, with more than 90,000 registered companies, of which there are more than 600 banks, which manage more than 500 billion dollars in assets.
There are two main types of companies for international operations: ordinary (non-resident) and exempt, both types of companies limited by shares.
A non-resident company is a company, which does not intend to conduct business within the Cayman Islands. An exempted company has requested and received the status of “exempt” by the Secretary of Finance.
The exempt company annually submits a declaration of compliance, rather than a detailed annual statement. An exempt company can be granted a future tax exemption for 20 years, which may be renewable. It is worth taking into account that there are no taxes in the Cayman Islands anyway.
All companies incorporated or registered under the Cayman Companies Law, including resident and non-resident companies, special economic zones, and exempt companies, must complete and maintain a final beneficiary registry at the registered offices of the Cayman Islands. The information is not public and is accessible only at the request of the competent authority of the Cayman Islands.
An ordinary (non-resident) company must submit an annual statement containing the details of its shareholders, while an exempt company must only submit an annual statement of compliance with the law of the company signed by an official or director. Annual accounts do not have to be submitted, nor do they require the appointment of auditors.
An ordinary (non-resident) company must hold at least one Annual General Meeting of Shareholders, which can be held anywhere in the world.
- A director is required, who can be a natural person or other legal entity of any nationality or jurisdiction.
- A shareholder is required, who can be a natural person or other legal entity of any nationality or jurisdiction;
- Bearer shares are not allowed;
- Registered agent is required;
- No secretary is required;
- An exempt company is not subject to taxes in the Cayman Islands;
- There is no minimum requirement for share capital;
- Accounting is required (anywhere in the world);
- Subject to proof of Economic Substance;
- Details of public knowledge: name of the registered agent and registered address, name and address of the director;
- Failure to pay government fees would cause the company to be eliminated and automatically dissolved.
As of January 1, 2019, new legislation entered into force in the Cayman Islands, which requires that entities within the scope that carry out particular activities have demonstrable economic substance in Cayman.
The International Fiscal Cooperation (Economic Substances) Act of 2018 was enacted after an extensive consultation process with the EU Code of Conduct Group, the OECD, and stakeholders in the Cayman Islands.
The relevant activities are:
1) Banking business
2) Insurance business
3) Fund management business
4) Leasing and financial business
5) Company headquarters
6) Shipping business
7) Distribution and service center
8) Intellectual property
9) Any holding company of shares of other companies and that receives dividends (subject to reduced economic substance).
Relevant entities include the majority of Cayman exempt companies, Cayman LLC and registered foreign companies, except:
- a) investment funds or entities through which investment funds invest or operate directly or indirectly;
- b) entities that are fiscal residents outside the Cayman Islands;
- c) entities that are authorized to conduct business locally in the Cayman Islands as a national company; or
- d) Cayman exempted limited partnerships and trusts.
The current International vision of the Cayman Islands by international organizations.
|International Organization||White List||Grey List||Black List|
Company registration US$3,510.00
- Certificate of incorporation issued by the local registrar.
- Memorandum and articles of Association.
- Registered office and agent.
- Stock Certificate (s)
- Resolution appointing the director and issuing the company’s shares
- Annual license
- Registered office and agent.
- Verification that the company complies with local legislation.
|OPTIONAL SERVICES||FEES IN USD|
Apostille per document or set
|Notarization of documents (per doc)||US$150.00|
|General powers of attorney (if we provide nominee)||US$150.00|
|Nominee director (yearly) *||US$500.00|
|Nominee shareholder (yearly) *||US$500.00|
|Tax exemption certificate (where applicable)||US$1,900.00|
|Certifications issued by the Registered Agent||US$150.00|
|Certifications issued by the Registry||US$450.00|
|Transfers in||Please contact us|
|Transfers out (exit fee)||US$400.00|
|Resolutions post incorporation||From $195.00|
* Nominee directors and nominee shareholders are provided by our Panama office. Should you require nominees to be provided in the Cayman Islands please inform us accordingly.