Cayman Island Company Formation
Cayman Island Company Formation
As one of the world’s leading financial centres, the Cayman Islands is a preferred destination for offshore companies. Benefits like tax exemptions and a business-friendly environment attract worldwide businesses. To harness these benefits for your business, you must consider Cayman Island company formation.
As one of the world’s leading financial centres, the Cayman Islands is a preferred destination for offshore companies. Benefits like tax exemptions and a business-friendly environment attract worldwide businesses. To harness these benefits for your business, you must consider Cayman Island company formation.
Benefits of Cayman Island Company Formation
Offshore company formation in the Cayman Islands can be beneficial for your business. It is a leading financial centre that offers many operational and financial benefits to businesses. So, consider Cayman Island company formation to harness these benefits.
01
Global Financial Centre
The Cayman Islands have international reputation as one of the global financial centres. Owing to its political and economic stability, the Islands attract businesses. Moreover, these islands have a pretty strong financial, legal, and land infrastructure.
02
Tax Exemptions
You are exempt from all types of taxes. These include:
- Income tax
- Corporate tax
- Capital gains
- Inheritance tax
- Gift tax
You get a certificate of tax Exemption for 50 years that exempts you from any Cayman Islands’ taxation.
03
Confidentiality
You do not need to declare your shareholders, beneficial owners, and directors’ names and financials. Thus, you can maintain business confidentiality and privacy. Also, the public records of your annual accounts are not available. The asset protection laws protect shareholders’ and investors’ interests from creditors, litigation, or claims.
04
Capital Requirements
There is no minimum capital requirement. You can ensure Cayman Island company formation even with one US$1, but the usual authorized capital amount is US$50,000.
05
Reporting Requirements
The reporting requirements are minimal. You must prepare your daily and annual accounts. But you are not required to file these accounts or submit accounting statements. Audits are not mandatory, and your accounting information remains confidential. But you must submit annual returns to the relevant authority.
06
Cayman Islands LLC Formation Process
The Cayman Island offshore company formation process is simple and smooth. It takes less time and documentation. You do not need to be present during the Cayman Island LLC formation. You can operate from anywhere in the world. A well-defined legal framework ensures a smooth and efficient process.
07
Currency
You can use any currency from the world, although US$ is the standard one. This allows flexibility in your international transactions. You can transfer any amount of money in any currency, outbound and inbound, without restrictions or government interference.
08
Flexibility
Flexible ownership and structuring options are available to you in the Cayman Islands. You can enjoy 100% foreign ownership, so local owners are not mandatory. The company’s shareholders and directors can be residents of any country in the world. You are also free from the compulsion to hold annual general meetings.
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Prerequisites of Cayman Islands Offshore Company Formation
Being a British territory in the Caribbean Sea, the Cayman Islands offers many benefits to offshore companies. But you must also know the various prerequisites to follow if you want to go for Cayman Island offshore company formation. These prerequisites include the following:
Permitted Business Activities
Offshore company formation in the Cayman Islands is not possible in the following business activities:
- Banking
- Trust management
- Trusteeship business provision
- Insurance
- Fund management
- Assurance
Legal Structures Allowed
Cayman Islands company formation is possible in the following legal structures:
- Exempted Limited Partnership (ELP)
- Exempted Company
- Exempted Limited Duration Company (ELDC)
- Segregated Portfolio Company (SPC)
- Ordinary Non-resident Company
Share Types
You can have the following different types of shares in the Cayman Islands offshore company in any currency:
- Preference shares
- Shares with or without voting rights
- Registered shares of no-par value
- Redeemable shares
Shareholders and Directors
Company formation in the Cayman Islands requires a minimum of one director and one shareholder. It can be the same person. An individual or a corporate body from any country can be the director or shareholder. You do not need a company secretary for Cayman Island company formation. You can conduct meetings of shareholders and directors anywhere in the world.
Company Naming Rules
You can end your company name with Limited, Incorporated, Sociedad Anonima, Societe Anonyme, or Corporation. The Cayman Islands bans the use of words like Bank, Trust Company, Assurance, Trustee Company, and Royal in your company name.
Procedure for Offshore Company Formation in the Cayman Islands
The procedure for offshore company formation in the Cayman Islands includes the following steps:
Step 1: The first step is to choose the legal structure of your business.
Step 2: In the next step, select possible company names. You must keep a few options to avoid process repetition if one name is taken. So, you must search the Cayman Islands General Registry to check if any other entity has taken the name.
Step 3: The next step is to appoint a registered agent to handle your company incorporation process.
Step 4: In the next step, the agent will prepare your Articles and Memorandum of Association. You must submit them to the Cayman Islands Registrar of Companies.
Step 5: Now, fill out the application form with the necessary details. We help you fill this form with accurate data points to ensure approval in the first instance only.
Step 6: Submit the form and necessary documents to the relevant authority. These documents include:
- Copy of the passport certified by the relevant person
- Copy of the address proof, certified by the relevant person
- Copy of personal ID
- Directors’ and shareholders’ names and addresses
- Share capital data
Step 7: Upon receiving these documents, the system generates a fee receipt. You must pay the respective amount.
Step 8: The Registrar of Companies approves or rejects your application and documents. If approved, you will receive a Certificate of Incorporation, business license, and business registration number. After this, you can start your operations. We also help you open a bank account with any bank locally or worldwide.
FAME’s role in Cayman Island Company Formation
FAME can be your expert guide and advisor during the Cayman Islands LLC formation. We help with a smooth and accurate performance of all the steps. You get customized solutions and services to cater to your unique needs.
Be it company incorporation, compliance support, documentation, or approvals, you will find complete handholding from FAME. So, expect our timely, detailed, and accurate support to set up your business in the Cayman Islands. Our business setup specialists, advisors, and country experts ensure customized support in your incorporation process depending on your needs.
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