The Cayman Islands can easily be considered a suitable offshore jurisdiction, which guarantees easy formation of business entities, a variety of their types and numerous incentives for business. Prifinance specialists have prepared for you a brief overview of why it may be useful to consider this jurisdiction as a target.
Forms of legal entities
If you are thinking about opening a legal entity in the Cayman Islands, it is possible to do so in the following forms:
Limited Liability Company (LLC) - this form is most suitable for conducting business activities outside the territory of the islands. In the case of an LLC, the founders (members) are not liable for the debts and obligations of the enterprise and their liability is limited only to the value of the contributions. There is no minimum threshold for the share capital of this type of company.
Exempt company – here simpler rules for maintaining the vehicle apply. For example, it is not required to maintain and make open to public inspection its register of members. It is also not required to hold the annual general meeting on the territory of the islands; it can amend its Memorandum and Articles of Association without restrictions, etc. This type of company allows you to reduce the costs of its activities and taxes due.
Ordinary local company – this entity has the right to carry out business within the islands. It is open to public inspection and must maintain a register of its members.
Ordinary non-resident company – the entity can obtain this status if it does not intend to carry out activities on the islands, but intends to carry out this activity somewhere outside it. However, it must maintain a register of members and be open to public inspection.
Overseas (foreign) company – an entity that is registered somewhere outside the islands, but can carry on business and own land on the islands under certain conditions.
Special Economic Zone Company – as its title suggests, the entity can benefit from certain incentives within special economic zones. Re-registering existing exempted companies as special economic zone entities may seem like a good solution if you want to benefit from certain incentives.
Unlimited company – the founders (members) of this company have unlimited liability for the debts and obligations of the entity.
Limited partnership – can be formed by two or more persons to carry on business under one name. The company can have i) unlimited partners (at least one), who are liable for all debts and obligations of the company, and ii) limited partners, whose liability is limited only to the amount of their contributions.
Exempt Limited Partnership - this partnership is suitable for offshore foreign investors who can only do business outside the territory of the islands. They can do business on the islands only to the extent necessary to carry out activities abroad. This type of partnership retains the main features of the limited partnership, but provides greater flexibility for doing business. An existing limited partnership can be granted exempt limited partnership status or it can be newly established.
Registration Requirements and Steps
Like any other similar approach, registering a business in the Cayman Islands has its own specifics. Smart Startup UK specialists can advise you and assist you in successfully completing this process. Setting up an LLC in the Cayman Islands typically involves the following basic steps:
Defining your business objectives and writing a business plan.
Choosing and reserving a company name for the future company and choosing its registered office address.
Collecting information about the beneficial owners of the future company.
Preparing the set of documents:
Registration forms;
Memorandum and articles of association;
Affidavit that the future company will conduct business only outside the territory of the islands.
Approval from the Cayman Islands Monetary Authority (CIMA) (optional, required only for certain types of activities (such as insurance, banking).
Submitting the set of documents for company registration to the Registrar of Companies.
Registration of the newly established entity for tax purposes.
Opening a bank account.
Legal framework
The procedure for registration and further activity of entities in the Cayman Islands is usually regulated by the Companies Act, the Limited Liability Companies Act, the Partnership Act and other related by-laws. This jurisdiction takes care of providing the legal framework that stimulates doing business by foreign investors operating outside it. The main body that carries out registration activities is the Registrar of Companies. For some activities, the participation of CIMA may also be required.
Advantages of forming a company in the Cayman Islands
If you have decided or are considering forming a company in the Cayman Islands, you can benefit from the following advantages as a result:
Confidentiality – the jurisdiction guarantees a very high level of security. Only the company title, registration date, type, address, and status can be publicly available. The company is still required to keep information about its beneficiaries, which can be disclosed in a limited number of cases, specifically to combat illegal activities.
The existence of Cayman Enterprise City with many advantages.
Easy and clear incorporation procedure, moderate costs of establishing a company here.
Lightweight operational, reporting and accounting requirements.
Various incentives for doing business, including tax.
Tax system
Here are the main highlights of the local tax system:
Corporate tax – None
Personal income tax – None
VAT – None
Withholding tax – None
Capital gains tax – None
How our experts can help
Let's say you are considering establishing or purchasing a company in the Cayman Islands. In this case, the lawyers of "Smart Startup UK" are ready to put this option into practice by providing legal support for the following aspects of business registration in the Cayman Islands:
Request and collect all the data and documents for opening a business in the Cayman Islands;
Choose the name and in the interests of the client, all negotiations are conducted by us with local authorities and banks;
We arrange the legal address, accounts and employees, as well as all the necessary documents for applying for the future company;
We provide comprehensive legal support for the further functioning of the new legal entity in the Cayman Islands.
The portfolio of specialists of "Smart Startup UK" is formed by more than 8,000 cases in the field of registration and maintenance of international business. Our lawyers will apply this experience to the goals of your project.
CREATE A COMPANY
Company name check and reservation
Company registration, including state fees
Obtaining an administrative identification number
Registering the company with state structures
Writing a company charter
A set of statutory documents of the company in electronic form
Bank contribution for the authorized capital of the company
Obtaining a foreign investment permit
Opening an account in: Cayman National Bank, Butterfield Bank
Opening a personal bank account
Apostille and translated corporate documents
Obtaining a residence permit
Free consultation
Assistance with online trading and opening a account in viva.com for online trading
Accounting services - 12 months
Accounting services
Annual renewal 2500 Euro (paid from the second year)
*Within 35 days
IMPORTANT! We can provide you with the initial share capital (if the amount is over 5000 Euro) for the registration of your company in the form of a loan from our company.
Please, if you are interested, make an inquiry to us.
What is the procedure!
1. You submit an application for company registration using the application form.
2. We check whether the company name for registration is available and eligible for registration.
3. Choose a bank that meets your company's needs from a list of Smart Startup UK partner banks.
4. We send you a proforma invoice for payment to be paid to our bank account + the amount for the initial capital of your company.
5. You receive all the necessary company documents for reconciliation.
6. You receive details of your newly opened bank account.
7. Within the specified period (for the Cayman Islands it is 35 days) you receive all the services included in the package.
8. You can manage all the services included in the package through our platform, as our team works 24/7 and you can get help from us within up to 30 minutes. We have built an internal ticket system for our customers, through which we process each of your support requests.
All services such as management, accounting, bank account opening requests, licensing, tax return filing, tax payment and more are carried out through your account on our platform, making it easier to manage your business!
