There are typically very few reporting or auditing requirements, and information about the company and its beneficial owners are not publicly available. WebCayman Foundation Companies (Cayman Foundations) which act as a hybrid between a company and a trust, were introduced as a new structuring vehicle by legislation enacted What are the most common options for foreign companies establishing a business presence in your jurisdiction? Despite the residential opportunities for expats, those who have moved to the islands themselves have said it takes a little longer to set everything up when moving here. Contact us to find out more about how to register business in Cayman Islands and our dedicated and experienced team will revert within the next 24 hours. International finance and accounting transformation, International document retrieval services, Registered office service and mail handling, International regulatory compliance services, Mandatory Disclosure Rules (MDR) Services, International pensions and employee benefit, the Memorandum and Articles of Association signed by the subscriber, the Section 165 declaration made by the subscriber that the operation of the proposed exempted company will be conducted mainly outside the Cayman Islands, domestic companies, ie, companies that are authorised to carry on business locally in the Cayman Islands, companies that are tax resident outside the Cayman Islands. Contact us now at enquiry@tetraconsultants.com for a non-obligatory free consultation. The company is deemed incorporated on the day the incorporation documents and fees are submitted to the Registrar, provided that the incorporation documentation is in good order. 2010-2023 Tetra Global Consultants. LinkedIn, Editorial inquiries should please contact us at All information on this website is for reference purposes only and does not constitutelegal or tax advice. You could be encountering considerable costs and other significant drawbacks. One disadvantage would be that you may be exposed to taxation through the remittance and distribution of the income and assets. While incorporated in Cayman, exempted companies are not permitted to carry on a trade or business in Cayman, except in furtherance of their business activities However, there are differences that make it entirely unique from the latter. The various types of individuals and corporate entities who should consider making use of an offshore tax haven include: As mentioned, there is no definitive list of tax havens in the world as there is no one strict definition. The Netherlands also participates in the exemption, has a 0% withholding tax on interest and royalty distributions, and has a tax ruling system in conformity with OECD standards. This is one of the benefits of using a locally licensed service provider, as they will process the annual paperwork and remind you of the amount and timing of annual fees. Learn about purchasing real estate in the Cayman Islands, including mortgages & borrowing, home insurance, importing furnishings and associated costs. They are completely legal, despite the negative publicity which they have received in the past. BVI Economic Substance Act 2020 & Beneficial Ownership Secure Search System Act 2020, BVI Insolvency Act and Related Legislation, The Advantages of BVI Funds and How to Set One Up, Comparison of Laws in Bermuda, the Cayman Islands and the British Virgin Islands Relating to Offshore Companies, Stay current with our latest legal insights and subscribe today, Establishing a business in the Cayman Islands, British Virgin Islands Investment Funds eTool, British Virgin Islands Economic Substance Calculator, Exempted companies incorporated with liability limited by shares or guarantee or with unlimited liability (see, Limited liability companies (a hybrid between an exempted company and an exempted limited partnership), Partnerships (particularly exempted limited partnerships as described in further detail in. The main forms of business vehicle include: 3. They allow foreign citizens to register offshore companies which are given preferential tax treatment and are not subjected to local corporate income taxes. Considering the largest of the islands Grand Cayman is only around 22 miles long, the likelihood of a long commute is almost non-existent. The application process to register your company is straight forward and your local licensed service provider will do the following: The Registrar does not require details of the proposed business as the Companies Registry does not maintain information on business nature, only type as classified in the Companies Law (such as resident, non-resident, or exempted companies). This adds yet another layer of protection. There are large tax risks with administering non-Swiss corporations from outside of Switzerland, for example. The registration and annual fees for any company are dependent on the size of the authorised share capital. However, the benefits are not limited to taxation alone. A Cayman Islands companys management is carried out by, and the responsibility of its board of directors. The only use of setting up a Cayman Islands company would be that it can be used as a holding company for international shares held by a single owner. Further, you have to pay the applicable incorporation fee to the Cayman Islands Government. They can provide a wide range of benefits to the company and company principals. Our team of experts will be in touch with you within the next 24 hours. The only other restrictions are income; applicants must have a minimum annual income of: The Cayman Islands are one of the most well-known tax havens of them all. That means that as a foreigner, once you establish an offshore company within the Cayman Islands tax haven, you are free to conduct your operations and transfer money internationally, inbound and outbound, in any amount and currency that best suits your needs. Statistics from the Register of Companies have shown a significant uptick in registrations in recent months. The growth in the popularity of Foundation Companies has been turbocharged by the parallel growth in Caymans FinTech sector which has found that the unique features of a Foundation Company are well-suited to innovative new organisational structures such as decentralised autonomous organisations (DAO). The incorporation and registration of a businesses is a seamless process conducted by a licensed local corporate service provider. Otherwise, it can be used for offshore asset protection. Whereas PTCs are commonly held in purpose trust structures (where the shares of the PTC are held by a professional trustee of a purpose trust), because Cayman Foundations can cease to have members there is no need for the PTCs shares to be held in a purpose trust, resulting in a simplified structure. The Cayman Islands has become one of the greatest places to move to for business and pleasure. These will include company and shareholder details and a list of board of directors. They provide corporate services such as company formation, provision of a registered office, agent and corporate directors and much more. In addition, experts expect the filing fees, import duties, work permit fees, registration fees and other costs to also gradually increase over time. Registering and incorporating a company in the Cayman Islands is a straightforward process and Cayman's many corporate services companies and law firms can help you. Cayman Foundation Companies are booming in popularity. For example, directors and officers are not required to be resident in Cayman, the register of members and minute books can be held in another jurisdiction and annual general meetings of members are not required. This is in place to prevent the event of businesses being used for criminal purposes. Expatica helps make your expat journey the experience you've always wanted. For a balanced take on why aCayman Islands company setup could be the next step for you and your new business, read on. For a typical resident company with a share capital of less than CI$42,000, the fee is CI$300 and for an exempt company, the minimum fee would be CI$600. The fees payable for these services are substantially lower than the costs of making an application to reinstate a company in circumstances where it has been struck off. Required fields are marked *. With Tetra Consultants by your side, the registration process of your business in the Cayman Islands will be smooth and hassle-free. Whether they are made through service providers or directly, submissions must include various details on the beneficial owners of companies, namely: For assistance, the Registrar of Companies may be contacted on (345) 946 7922. The following locations are well-known offshore locations: Switzerland is not offshore but is one of the most convenient jurisdictions for offshore corporation formation. whether it has conducted any relevant activities in the preceding financial period. The Cayman Islands has a stable legal system based on English common law. The Registrar must be notified of any appointments, resignations and/or removals of directors and officers within 30 days from the date of change. It preserves the limited liability of members while having a few partnership characteristics. In fact, taking a look at some examples of the most basic living costs, average prices are: Comparing these prices with similar things in the UK, youll most likely require a higher salary to live somewhere like this. Cost of Incorporation in Cayman Islands. Retrospective legislation can be used to declare a tax-evasion scheme that was legal some years ago as no longer legal now. An alternative to a trust in both private wealth, charitable and commercial contexts; General partners of a partnership in an investment fund structure; and. With a holding company in the Cayman Islands, businesses can maximize tax efficiencies, create IPOs, and merge with other companies in the Cayman Islands or with authorized foreign entities, and more. Cayman corporate structures are therefore a favored choice for wealth management and effective tax structuring. Appointments are preferred and they can be made by phone or by emailing: cigenreg@gov.ky. A full-service law firm offering advice and solutions to the local and international market. Also worth noting is that annual fees and annual returns are due in January of each year, but the Companies Registry is under no obligation to notify the company that the fees are due. Donate to the UN Refugee Agencytoday. Once all necessary documents and supporting due diligence questionnaires have been submitted, reviewed and approved, the incorporation process can commence. Hence, the companies are not able to raise capital through equity most of the time. Usually, tourist hotspots are also considered tax havens due to their promising income potential. Did Columbus really "discover" Cayman? While there are varying sentiments and connotations about the ethicise of tax havens in a world rife with corruption and tax evasion, there is no doubt that countries offering more favourable tax regimes to foreigners have their place in todays financial system. Contact Offshore Protection for specific advice regarding your situation. However, with that, there are some underlying disadvantages as well. Segregated portfolio companies (a single legal entity whose assets and liabilities can be allocated to different segregated portfolios within the company, so of particular use in insurance, mutual fund and securitisation structures). In jurisdictions like Antigua, it is an outright crime to disclose unauthorised information and banking details, and the names of the director and shareholders are never publicised. The value of the First name* field is not valid. The company may change its registered office to another address in the Cayman Islands by directors resolutions. An additional benefit is simplicity and ease of operation. Discover the pros and cons of setting up an offshore company, including privacy and reduced tax liability, and learn how to register, establish, or incorporate your business outside of your country of residence. Investors who would like to set up an international business. Placing assets into offshore corporations and overseas legal structures can provide protection from future liabilities. WebIncorporating a local law legal structure for a startup is pointless: no incentive, high-rate taxes, representative of the company has to be resident (and get Cayman residency is Consequences of breach of directors fiduciary duties can result in criminal convictions, civil sanctions, disqualification and reputational damage to the company. ConyersBermuda, British Virgin Islands and Cayman Islands. However, there are exceptions in the event of terrorism or criminal atrocities requiring investigation. This means that the fundamental corporate structure of a Cayman Foundation is a tried and tested one and legal jurisprudence in respect of Cayman companies will, to the extent it is relevant, also apply to a Cayman Foundation. Hence, with higher wages expenses, it results in a lower profit. This can most likely be attributed to the laid-back culturehere. If you were to overlook the fact that annual fees and returns were due, there is a risk that a company could be struck off without your knowledge. Therefore, your assets can be effectively shielded from legal opponents, judges, and court rulings simply by incorporating offshore. Offshore asset protection trusts are widely used for their estate planning benefits, unparalleled asset protection, tax reductions, and high degree of confidentiality. Stable Legal System. Get A Free Consultation & Start Your International PlanSchedule Consultation. Offshore Protection specializes in custom offshore strategies to reduce your taxes, diversify your wealth, and protect your assets so you can pursue your freedom. We cant take a balanced look at setting up a business in the Caymans without exploring the cons. The new Due Diligence (KYC) was adopted in Cayman Island in 2001 where new businesses would have to provide information on the business activities, beneficial ownership, etc. The GCCP is a new government initiative which allows people who are employed outside of the Islands to relocate and work remotely in the Cayman Islands for up to 24 months, which makes it easier for Cayman Islands company setup. Due to the states stable government and economy, any foreign investor would greatly profit from many business opportunities. Corporations are best for big enterprises; they dont fit well with start-ups. The Cayman Islands Government has been clear that it will not consider the introduction of a public register of beneficial ownership unless and until that becomes the accepted and implemented international standard. The Cayman Islands is a destination like no other. Relevant activities are: For a deeper dive into economic substance requirements, read our article. Single Director: Incorporating a company in Cayman Islands with only one person is possible. As a result, incorporating a company in Cayman Islands is very safe, yet feasible for every entrepreneur. Forming and incorporating a company in Cayman Islands allows for flexibility options. Due to the states stable government and economy, any foreign investor would greatly profit from many business opportunities. So, if you were thinking of investing in office space, transportation links might be worth considering before doing so. Other stipulations include activities, partialities, privileges, voting rights, limitations and other conditions set by your BoD. A well-established boutique law firm that represents and provides advice to both offshore and local clients. Campbells is a full service offshore law firm with offices in the Cayman Islands as well as BVI and Hong Kong. For example, both Antigua and Cayman Islands charge offshore companies zero corporate income tax, as well as no capital gains tax, personal income tax, inheritance tax etc. For instance, ELDC has a limited duration and non-transferability of interest qualities. A Cayman Islands company must have at least one director, who need not be ordinarily resident in the Cayman Islands. They understand that success is a journey involving personal growth, savvy optimism and the tenacity to be the best. For a businesswoman looking to find the perfect setting for their company, perhaps the Caymans is the place to be? It is worthwhile to consider the transportation links before setting up a Cayman Islands company. Ordinarily, a Cayman Foundation will have the following roles: The rise in the popularity of Cayman Foundations is testament to Caymans already well known innovative approach and reputation for wealth planning and corporate structures. 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