Register your company in Cayman Islands

Michalaki Pitsillidou Rozen Law Firm > Register your company in Cayman Islands

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CAYMAN ISLANDS – EXEMPT COMPANIES 

The Cayman Islands are a British Overseas Territory situated in the Caribbean sea.  Due to their connection with Britain Cayman Island have political stability and as a result excellent legal , accounting and banking services. Cayman Islands employ the British legal system and is monitored by Crown representatives and elected members.There is no exchange control and no restriction on the movement of funds to or from the Islands.

The Cayman Islands have no double taxation treaties with any other part of the world but have undertaken  to assist foreign governments by giving them information where a Cayman Island Company has been used  or involved in activities which are mutually considered as criminal.

 

The Cayman Islands Exempted Company 

A Cayman Island exempted company has the following characteristics:

 

Taxation 

There are no taxes in the Cayman Islands on income, capital gains, profits, dividends, investments or capital  transfers. The company may apply for a twenty year guarantee against taxation from the Cayman Islands  Government, which may be extended to thirty years on application.

 

Shareholders 

Shares must be issued in registered form, although details of the shareholders are not maintained on public  record. Bearer shares are only permitted when lodged with an Authorized Custodian within the Islands.

 

Directors 

Details of the directors must be advised to the company registrar but this information is not publicly available. Directors can be foreign residents and do not have to be resident in the Cayman Islands. At least one director is  required and corporate directors are permitted.

 

Annual Reporting 

There is no requirement to fled accounts with the registrar. However, an annual return must be fled. The  return takes the form of a simple declaration.

 

Timescale 

The usual incorporation time is in the order of 3 to 5 days. For  more urgent incorporations there is  an emergency procedure available an additional fee can be paid in order to incorporate within 24  hours. Our associated offices do keep a limited number of ready-made companies in stock.

 

Restrictions on Name and Activity 

Generally, although not strictly necessary, names would end with one of the following words, or abbreviations : Limited, Corporation, Incorporated, Societe Anonyme or Sociedad Anonima.

The following words, and their associated activities, cannot be used without approval :  Assurance,  Bank,  Building  Society,  Chamber  of  Commerce,  Chartered,  Cooperative,  Empire,  Imperial,  Insurance, Municipal and Royal.

 

Local Requirements 

According to local law, the company needs to have a registered office address within the  Cayman Islands. Our associated offices would generally provide this service and a local resident agent as part of our domiciliary  services.

 

Confidentiality

The  Confidential  Relationships  (Preservation)  Law  makes  it  a  criminal  offense  to  leak  confidential  information or to attempt to obtain confidential information relating to a Cayman Island  company. . However as with most jurisdictions, this confidentiality is being eroded by subsequent legislation  such as the Proceeds of Crime Law (2008 Revision), Tax Information Exchange Agreements and other  mutual assistance treaties whereby there will be disclosure of information in criminal offenses, including  tax offenses.

The maximum authorized share capital which attracts the minimum capital duty is US$50,000.

International initiatives such as US FATCA, UK FATCA, Common Reporting Standards (CRS) and many others  have greatly increased the ongoing costs of compliance.

 

OPTIONAL SERVICES

Directors 

Any offshore company which had UK  based directors would be tax resident in the UK and subject to UK tax on its worldwide income.  Failure  by the directors to declare the liability of the offshore company to UK tax would be an offense under UK  law with potentially very serious financial and criminal consequences. Most onshore countries have similar  provisions within their tax legislation so it will rarely be advisable for onshore resident clients to act as the  directors of an offshore company. To establish that the management and control of the company does take  place offshore and the company is therefore tax resident offshore as well as incorporated there we can,  and habitually do, provide directors. In most cases this service is essential if legitimate tax savings are to be  made.

 

Bank Accounts

We can assist with the opening of bank accounts for the company in most places in the world and our fees  for attending to the account opening procedures would be from US$1,000 plus the costs of preparing any  additional notarized documentation which a particular bank may require.

 

Dedicated Telephone Lines 

For those companies which are particularly active or wish to have a higher profile or more substance we can  arrange the immediate allocation of a dedicated telephone line answered with the name of your company.

 

 

 

 

 

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