What Is a Cayman Islands Exempted Company?

A Cayman Islands exempted company is a legal structure of a company incorporated in the Cayman Islands for the conduct of business outside the jurisdiction. It is arguably the most popular corporate structure among international investors, fund managers, and multinational businesses due to its tax-exempt status, confidentiality, and versatility.

Key features: 

• No tax in the jurisdiction on income, capital gains, or dividends.
• No obligation to file annual financial statements publicly.
• Confidential ownership: Shareholder and director details are not publicly available.
• Permitted 100% foreign ownership.
• Forbidded to conduct business in the Cayman Islands, except for business incidental to offshore business.

Common uses:

• Investment holding companies
• Hedge funds and private equity funds
• Intellectual property holding
• Special Purpose Vehicles (SPVs)
• International trading or consulting companies

Why it's popular

Its popularity stems from ease of establishment, speedy and efficient incorporation procedure, minimal compliance burden over time, and permanent legal certainty provided by British common law. All this makes it an ideal choice for international investors, fund managers, and multinational corporations that look for a reliable and flexible jurisdiction for international business operations.