Cayman Islands company formation for non-residents

What a Cayman exempted company costs

Starter is US$3,618 for year 1. It includes the government incorporation fee, the registered office for 12 months, the memorandum and articles, the statutory registers and the beneficial ownership filing.

Growth (US$5,116) adds a bank-account introduction and 12 months of mail scanning. Premium (US$5,594) adds director services, 12 months of bookkeeping and the year-2 annual return filing.

Cayman government fees follow the company's authorised share capital. Under Schedule 5 of the Companies Act (2026 Revision), an exempted company with capital up to KYD 42,000 pays KYD 700 to incorporate and KYD 925 a year after that. The next band, up to KYD 820,000, pays KYD 1,000 and KYD 1,225.

Most holding companies and SPVs stay in the lowest band, and our Starter price assumes it. These are the fees as of September 2026.

From year 2 the renewal is US$4,487 on Starter. It covers the annual government fee, the registered office, the January annual return and the economic substance notification.

• Included: registry fee, registered office, memorandum and articles, registers, beneficial ownership filing
• Included from year 2: annual fee, registered office, annual return, economic substance notification
• Optional on Starter and Growth: professional director service (included on Premium); apostilled document set

How long it takes, step by step

Our timeline is 3–5 business days after KYC approval. The provider's due diligence on source of funds and source of wealth happens before approval, and it is usually the longest step.

The General Registry describes three steps: reserve the company name, submit the incorporation application with the memorandum and articles, and return the signed consent forms. A name that contains restricted words needs approval from the Registrar or the Cayman Islands Monetary Authority first.

The subscriber also declares that the company's operations will be carried on mainly outside the Cayman Islands, which is what makes it an exempted company.

• Before KYC approval: order placed, source-of-funds and source-of-wealth documents reviewed
• Business day 0: KYC approved and name reserved with the Registrar
• Business day 1–3: memorandum and articles filed
• Business day 3–5: signed consents returned, certificate issued and documents in your portal

Annual compliance: January is the month that matters

Every exempted company files an annual return with the Registrar in January of each year after the year it was registered. The return declares, among other things, that the company's operations have been mainly outside the Islands, and the annual fee is paid with it.

The return is due in January, and penalties start if it is filed after 31 March. Between 1 April and 30 June the penalty is 33.33% of the annual fee, between 1 July and 30 September it is 66.67%, and after that it is 100%.

Companies that keep defaulting can be struck off.

Economic substance runs in parallel under the Economic Substance Act, in force since 1 January 2019 and administered by the Department for International Tax Cooperation (DITC). Each year the company tells the DITC whether it carries on a relevant activity, for example holding, headquarters, finance and leasing, or intellectual property business.

The notification must be filed before the annual return. A company that carries on a relevant activity must also meet the substance test for it and file an economic substance return within 12 months after its financial year end.

Regulated vehicles have more on top. A fund registered with the Cayman Islands Monetary Authority has its own audit and filing obligations, which are outside the Starter package and quoted separately.

• January: annual return and annual fee to the Registrar
• Every year: economic substance notification to the DITC, and a return if you carry on a relevant activity
• Always: beneficial ownership information kept current on the central platform
• Always: proper books and records; audit only for regulated entities

Directors, shareholders and beneficial ownership

An exempted company can be formed with one shareholder and has no minimum capital requirement. It needs at least one director, who can live anywhere. Shares transfer only when the transfer is entered in the company's register of members.

Privacy works within set limits. The General Registry says it releases on enquiry only the company's name, type, registration date, registered office and status.

The Registrar also keeps a list of current directors, which anyone can inspect for a KYD 50 fee under section 55A of the Companies Act. The register of members is not filed publicly.

Beneficial ownership is filed on the government's centralised platform. A beneficial owner is anyone who holds more than 25% of the shares or votes, or who can appoint or remove a majority of the board; failing that, it is the person with significant influence or control.

Under the Legitimate Interest Access Regulations 2024, members of the public who meet the criteria can apply for access.

A company that fails to file its beneficial ownership information can be struck off, and its assets can vest in the government.

Tax neutrality, and what it does not cover

The General Registry describes Cayman as tax neutral: there are no corporation, capital gains, payroll, property or withholding taxes on any type of company. That is why funds, listing vehicles and joint ventures with investors from several countries use it.

Tax neutrality in Cayman does not remove tax elsewhere. Investors and owners are taxed under their own countries' rules, and a company run from another country may be tax resident there.

Cayman takes part in the OECD Common Reporting Standard (CRS) and the US Foreign Account Tax Compliance Act (FATCA) through the DITC, so financial account information is exchanged with tax authorities. Structure the vehicle with advisers in the countries that matter to your investors.

Bank accounts for a Cayman company

In our experience, Cayman exempted companies usually bank outside Cayman, with banks in the financial centres their investors use. Banks typically ask for the certificate of incorporation, register of directors, register of members and a structure chart. They also ask for evidence of the beneficial owners' source of wealth.

We introduce you to banks and payment institutions that accept Cayman companies with your profile and prepare the application on Growth and Premium. The bank decides. For funds, the bank may also want the offering documents and details of the administrator, so allow extra time if the vehicle is a fund.

What you provide and what we handle

For each director, shareholder and beneficial owner we need a passport and proof of address, and usually a professional or bank reference. We also need a statement of source of funds and source of wealth, and a group chart if the company sits inside a structure.

We handle the name reservation, the memorandum and articles, the filing and government fee, the registered office, the registers and the beneficial ownership filing. After incorporation we run the January annual return, the economic substance notification and your renewal calendar.

• You provide: passport, address proof, reference, source of funds and wealth, group chart
• We handle: name, constitution, filing, fee, registered office, registers, beneficial ownership filing, January annual return, economic substance notification

When Cayman is the right choice

Choose Cayman for an investment fund or special purpose vehicle (SPV), a holding company for a US or Hong Kong listing, or a joint venture with institutional investors who expect it. Banks, auditors and investors know the exempted company well.

The Cayman Islands were removed from the Financial Action Task Force (FATF) list of jurisdictions under increased monitoring in October 2023 and were not on it after the June 2026 update.

For a simple family holding company or a founder with no outside investors, a BVI business company or a Seychelles IBC can do the same job; compare their year-2 prices on each jurisdiction page. For a trading company, consider Hong Kong.

If you are unsure, ask what your investors, lenders or listing advisers expect. When they name Cayman, the higher fees buy a structure they already accept; when nobody names it, a simpler jurisdiction is often enough.