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Cayman Islands

Introduction

The Cayman Islands is an autonomous British Overseas Territory in the western Caribbean Sea.

The 264-square-kilometre (102-square-mile) territory comprises the three islands of Grand Cayman, Cayman Brac and Little Cayman located south of Cuba, northeast of Costa Rica, north of Panama, east of Mexico and northwest of Jamaica.

The Cayman Islands is considered to be part of the geographic Western Caribbean Zone as well as the Greater Antilles.

Population:

approximately 60,765 and Cayman’s capital is George Town.

Language:

The official language is English and the local dialect is Cayman Islands English.

Political Structure

The current Constitution, incorporating a Bill of Rights, was ordained by a statutory instrument of the United Kingdom in 2009.

Legislative Assembly is elected by the people every four years to handle domestic affairs. Of the elected Members of the Legislative Assembly (MLAs), seven are chosen to serve as government Ministers in a Cabinet headed by the Governor. The Premier is appointed by the Governor.

The Cabinet is composed of two official members and seven elected members, called Ministers; one of whom is designated Premier. There are two official members of the Legislative Assembly, the Deputy Governor and the Attorney General.

Economy

Caymanians have the highest standard of living in the Caribbean. According to the CIA World Factbook, the Cayman Islands GDP per capita is the 14th highest in the world.

Currency:

Cayman Islands dollar (KYD)

Exchange Control:

There are no exchange control or currency regulations.

Financial services industry:

The financial services sector is one of the main industries in the Cayman Islands, and there is a substantial commitment by the government to the continued development of the offshore financial services industry.

The Cayman Islands is a major international financial centre. The largest sectors are "banking, hedge fund formation and investment, structured finance and securitisation, captive insurance, and general corporate activities.

Regulation and supervision of the financial services industry is the responsibility of the Cayman Islands Monetary Authority (CIMA).

There are a number of service providers. These include global financial institutions including HSBC, Deutsche Bank, UBS, and Goldman Sachs; over 80 administrators, leading accountancy practices (incl. the Big Four auditors), and offshore law practices including Maples & Calder. They also include wealth management such as Rothschilds private banking and financial advice. Cayman Islands is often considered a major world offshore financial haven for international businesses and many wealthy individuals.

Corporate Law/Act

In the Cayman Islands the registration and control of companies is governed by the Companies Law (2010 Revision).

Type of Company/Corporation:

One IBC supply incorporation in Cayman Islands service with the common type Exempt Private Limited and Limited Liability Company (LLC).

Business Restriction:

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

Company Name Restriction:

There are a number of restrictions on the naming of companies in the Cayman Islands. The name of a new company must not resemble that of an existing company, must not contain words suggesting royal patronage or such words as “bank”, “trust”, “insurance”, “assurance”, “chartered”, “company management”, “mutual fund”, or “Chamber of Commerce”.

There is no requirement to add a suffix to the company name, although normally companies are incorporated in the Cayman Islands include Limited, Incorporated, Corporation or their abbreviations.

Company Information privacy:

The Register of Directors, Officers, and Changes must be kept at the registered office. A copy of the Register of Directors and Officers must be filed with the Registrar of Companies but is not available for public inspection.

Every exempted company must keep a Register of Members and the original or a copy should be kept at the registered office. Annual returns must be lodged, but they do not disclose details of the directors or members.

Incorporation Procedure

Just 4 simple steps are given to incorporate a Company in Cayman Islands:
  • Step 1: Select basic Resident/Founder nationality information and other additional services which you want (if any).
  • Step 2: Register or login and fill in the company names and director/ shareholder(s) and fill in billing address and special request (if any).
  • Step 3: Choose your payment method (We accept payment by Credit/Debit Card, PayPal or Wire Transfer).
  • Step 4: You will receive soft copies of necessary documents including: Certificate of Incorporation, Business Registration, Memorandum and Articles of Association, etc. Then, your new company in Cayman Islands is ready to do business. You can bring the documents in company kit to open corporate bank account or we can help you with our long experience of Banking support service.
* These documents required to incorporate company in Cayman Islands:
  • Passport of each shareholder/beneficial owner and director;
  • Proof of residential address of each director and shareholder (Must be in English or certified translation version);
  • The proposed company names;
  • The issued share capital and par value of shares.

Compliance

Capital:

The company incorporated in Cayman Islands with the usual authorised is US$ 50,000.

Share:

Classes of Shares Permitted. Exempt companies can issue shares at no par value. Non-Resident companies need to put a par value on shares. Bearer shares are not permitted.

Director:

In the Cayman Islands only one director is required and the director can be of any nationality. The initial directors details are filed as part of the Memorandum and Articles of the company with the Registrar, subsequent appointments are not on public record.

Shareholder:

Only one shareholders is required and shareholders can be of any nationality

Beneficial Owner:

In April 2001, the Cayman Islands issued new due diligence guidelines requiring disclosure of information on all officers, members, beneficial owners, and authorised signatories of Cayman Islands companies to service providers.

Taxation:

Companies in the Cayman Islands are not subject to any form of direct taxation in Cayman Islands. An exempt company provides the additional benefit of a tax exemption certificate granted for a period of up to 20 years.

Finance statement:

Generally there is no auditing requirements in the Cayman Islands. Only companies who are subject to certain licensing legislation as a result of specific proposed activities are required to conduct an audit.

Local Agent:

The Cayman Islands Companies Ordinance does not make any specific reference to a requirement for a company secretary, however, it is usual to have company secretary.

Your Cayman Islands company must have a registered office, which must be a physical address in Cayman Islands. The registered office is where documents may be legally served on the company. You must have a registered agent in the Cayman Islands.

Double Taxation Agreements:

There are no applicable double taxation treaties.

License

License Fee & Levy:

For exempt companies: with a share capital not exceeding US$ 50,000 US$ 854 with a share capital greater than US$ 50,000 but not exceeding US$ 1 million US$1220 with a share capital greater than US$ 1,000,000 but not exceeding US $ 2 million US$ 2420

Business License:

Names Requiring Consent or a Licence: Bank, building society, savings, loans, insurance, assurance, reinsurance, fund management, asset management, trust, trustees or their foreign language equivalent.

Payment, Company return date Date:

Companies incorporated in the Cayman Islands must file an annual return in January of each year. This annual return must be filed alongside payment of the annual government fee.

Penalty:

Companies (Amendment) Law 2010 states that “Every company shall cause to be kept proper books of account including where applicable, material underlying documentation including contracts and invoices. Such documentation must be retained for a minimum period of five years from the date on which they are prepared”. Failure to retain such records shall be subject to a penalty of $5,000. Unregulated exempt companies do not need to file accounts..

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