Cayman Islands company set up guide

jone February 7, 2022February 7, 2022

Cayman

A British overseas territory located in the western Caribbean, the Cayman Islands are part of the British Commonwealth. Company formation in the Cayman Islands is known to be a very simple process with minimum requirements relating to the Cayman Islands company law.

In 2021, there were over 99,000 active companies registered in the Cayman Islands, including almost 300 banks, 750 insurers, and 10,000 mutual funds.

A Cayman Islands limited liability company (LLC) is one of the most frequent business formats in the country.

It can be used for a variety of applications. Investment funds, joint-venture businesses, private equity transactions, securitizations, and various other structures are examples.

Incorporation Requirement

Timeline for registration

The Cayman Islands offer a simple and easy-to-use online system for forming companies. The processing time for each step varies from 1-4 working days asCompanies Registrars oversee the whole process.

Reserving Your Company Name

Before choosing a company name, you must first decide on the type of structure that best suits your firm. The Cayman Islands company registry website has more information on the various structures.

Once you decide on the business structure, you can reserve the name. You can include Chinese characters in the name. For your business name to be available, you should conduct Cayman Islands company search with the General Registry.

completing the incorporation application

The incorporation application requires a few documents including Memorandum of Association, Articles of Association and Name Approval:

The Memorandum of Association sets forth the name, registered office, objectives of the company, the type (resident, non-resident, or exempted), the authorized capital and type of shares, names, Subscription addresses, signatures, number of shares taken by each subscriber, witness name and signature, and date of execution.

Returning your signed consent forms

You or your responsible registering company will need to return the completed documents to the company registry of Cayman Island. A completed file prepared by a professional incorporating team may help entrepreneurs to save a lot of extra paperworks and time.

Law and Taxation

Unless it is a regulated enterprise subject to specific licensing requirements, a corporation is not required to appoint auditors or file financial statements (annually or otherwise) with the Registrar or other regulatory entity.

Regulated institutions, such as banks, insurance businesses, trust companies, corporate managers, mutual fund administrators, and regulated mutual funds, are required to file annual audited accounts with the Cayman Islands Monetary Authority.

While there are no detailed accounting standards in Cayman, a Cayman corporation must keep accurate on their account records for income flows, spending, assets and liabilities that present a fair and realistic picture of the firm’s operations and explain its transactions. The records do not have to be kept in Cayman, but a firm that keeps its books of account outside of the Cayman Islands must send information about them to its registered office on an annual basis.

Financial Infrastructure

Cayman is a major worldwide financial hub that effectively connects law-abiding users and producers of investment capital and financing from all over the world, allowing for this form of international investment. Institutional investors, regulators, lenders, and other stakeholders have been conducting due diligence on Cayman for years.

It is a proven, established, and recognized jurisdiction that is widely renowned by worldwide corporations like banks and other financial institutions, as well as those wanting to raise investment capital, perceived as a transparent and compliant center of excellence.

These users and providers come from a variety of countries, each with its own set of tax laws, legal structures, rules, and culture. Cayman offers them a neutral platform on which to pool their financial assets.

Key Takeaway on Benefits of Incorporation in the Cayman Islands

In comparison to other regions, the Cayman Islands company registry offers a distinct advantage in terms of speed and ease of incorporation. The first point to mention is that Cayman’s legal system is founded on British Basic Law and is flexible, modern, and commercially oriented. Within 1-4 days, entrepreneurs can finish their company registration process with all required documentation.

While the Cayman Islands offered all business owners a favorable tax rate. Direct taxes, such as corporate tax and capital gains tax, are free in Cayman. This provides Cayman business owners with a better operating environment in which to pursue long-term business growth.

Cayman Island companies also do not require any capital for company formation, which allows many start-ups and SMEs with less capital to establish their business over there. Meanwhile, business owners will not be required to show up personally in Cayman Island to participate into company formation. That allows people around the globe can enjoy the benefits from Cayman company formation back in their home country.