Why a Cayman Island Company?
The Cayman Islands levies zero Corporation tax and zero tax on Capital gains
Extremely private; no free public access to beneficial ownership information
Shareholders, directors and officers can reside anywhere in the world
Bearer shares are admissible
A minimum requirement of one director and one shareholder
No requirement to disclose named beneficial owners to authorities
Superior Caymanian banking system
Well established legal regime
Politically stable British overseas territory
Cayman Company Key Facts
Cayman Company Tax Information
The Cayman Islands is a tax neutral territory whereby companies are exempt from paying any form of corporation tax, income tax, stamp duty tax, asset tax, and exchange controls on any corporate or personal income derived outside of the jurisdiction.
Furthermore, the Cayman Islands has been one of the most lucrative international offshore financial centres for over twenty years, as a result of its unparalleled tax efficiency incentives. There are therefore over 95,000 registered offshore companies active on the island which at present benefit from Cayman’s favourable tax system.
Type of Shares
Registered shares, preference shares, bearer shares, redeemable shares and shares with or without voting rights attached.
Corporate or individual
Must the Director/ Manager be resident?
Minimum paid up capital
Restrictions on trade
Companies cannot trade within the Cayman Islands, own real estate or undertake the business of banking, insurance business or mutual fund business unless licensed. Companies are prohibited from soliciting funds from the public.
Type of Company
Location of meetings
It must be maintained in the Cayman Islands. Additionally, each company must have a Registered Agent and Registered office in the jurisdiction, provided by a licensed service provider.
Caymanian Dollar (KYD).
Name of the Company
No company can be registered under a name that contains the words “Royal”, “Imperial”, “Empire”, “Municipal”, “Chartered”, “Cooperative”, “Assurance”, “Bank” or “Insurance”, except without the consent of the Registrar.
Cayman Island IBCs enjoy strong privacy and confidentiality through protective legislation and Common Law which enables companies to operate with maximum security and anonymity. In 2015 the jurisdiction ranked fifth in the Financial Secrecy Index demonstrating the high level of protection IBCs benefit from.
One of the most prevalent pieces of legislation governing data protection is the Confidential Relationships Preservation Law (CRPL) revised in 2009, which provides a statutory framework that regulates disclosures of confidential business activity and also the identity of any professionals associated with a Caymanian company. The law places criminal sanctions for any breaches of confidentiality that defy certain provisions within CRPL and thus efficiently safeguards Cayman Islands offshore companies against data leaks.
A Cayman Islands offshore company is obligated to file an annual return form as well as a statement by the company director(s) validating that the company has not conducted any business within the jurisdiction. The company’s confidential financial statements however are kept away from the public domain.
The Cayman Islands has been among one of the 94 jurisdictions to become a signatory to FACTA legislation introduced in 2010. By doing so the jurisdiction has implemented an automatic international exchange of information for tax purposes with the United States and also by extension with the UK. Under the legislation, all offshore Cayman Islands financial institutions non-resident in the Caymans are obligated to provide the Cayman Islands Competent Authority with required information to then pass onto the relevant jurisdiction’s Competent Authorities. This partnering agreement has prevented Cayman Islands based financial institutions to pay otherwise a 30% withholding tax on US source income.
Moreover, the Cayman Islands voluntarily complies with the European Union Savings Tax Directive (EUSD) on a bi-lateral agreement basis with EU member states. The Cayman EUSD Law obligates reporting to the Cayman Islands Competent Authority certain information regarding interest payments to beneficial owner(s) resident in an EU member state.
The Cayman Islands has been commended as an exemplar jurisdiction for it’s level of compliance in implementing international financial transparency in an effort to reduce tax evasion and illegal financial activity. The island has been one of the twenty international jurisdictions to heed the Common Reporting Standard (CRS) initiative developed by the OECD to take affect in 2018, and is ‘white listed’ by the organisation for its anti-money-laundry monitoring.
Cayman Background Information
Cayman Island enjoys a strong and stable economy with a GDP per capita total of $54827.20 as a result of it’s robust financial service sector of which accounts for over half of it’s total GDP, and successful tourism and real estate sectors. The Cayman Islands is a jurisdiction of choice to incorporate an offshore company in as a result of its business friendly economic stance. As one of the early jurisdictions for offshore has grown as an international offshore financial centre, the territory has well established large commercial banks to homing high net worth hedge funds. Furthermore, Moody’s reports have awarded the territory with an AA3 economic rating.
Cayman Islands has the world’s largest offshore banking sector. To date, there are over 500 banks registered on the Island with banking assets worth a recorded $1.4 trillion in 2014, and a greater number of incorporated companies than there are resident individuals, demonstrating the high level of financial activity.
The Cayman Island’s tourism sector is one of the largest contributors to its strong economy.
In the past seven years, tourists have spent an average of US$524 million on the island which has helped boost local employment and raise government revenues. The world famous Seven Mile Beach particularly draws worldwide tourism onto the island year on year.
The Cayman Islands enjoy great political stability as a result of being an overseas territory of the United Kingdom whereby the UK holds responsibility over the internal security and good governance of the territory. Strong levels of foreign investment in the Caymans Islands is attributed to the fact that the jurisdiction is under the trusted hands of the UK politically. The jurisdiction’s political system is based on strong representative democracy with regularly held elections. The Cayman Islands has been favoured for its business friendly political stance accommodating the operation of offshore business whilst also ring-fencing them to ensure that the jurisdiction’s own competitiveness is maintained.
The principle legislation governing company operation is the Cayman Island Companies Act 2004. Legislation is business friendly providing significant autonomy to offshore companies in the jurisdiction to conduct business with flexibility and reduced bureaucracy.
Cayman Banking Services
- High-level confidentiality – Banking privacy is reinstated by Cayman Island statutes. Authorities have access to bank information in criminal tax matters where a court order is present only.
- Variety of payment options – With accounts in several currencies, internet banking, international wire transfers, debit and credit cards, prepaid cards, checkbooks, merchant accounts, brokerage accounts Cayman bank account holders enjoy great payment flexibility.
- Low initial deposit requirements
- Full operative control– Secure Internet-banking facilities, with no need to install specific software on computers or other devices.
- Wide choice of payment cards
- No personal visits to Island is required to open a Cayman Island bank account.
- Free account application – The bank charges no fee for account opening.
Bank Account Requirements:
✓ Certified copy of passport
✓ Bank reference from a bank, which knows the person over 2 years
✓ Professional reference from an individual who knows the person over 2 years. If you do not have a relationships with a professional, the bank needs a second bank reference from another bank.
✓ Proof of address (original utility bill with individual’s name and residential address).