DOING BUSINESS IN CAYMAN ISLANDS
Since 2003, Healy Consultants has efficiently and effectively assisted Clients with Cayman Islands i) business registration ii) business licensing iii) corporate bank account opening and iv) residence permits. We can establish either an exempted company or an ordinary non-resident company for our Clients’ businesses.
Press the link headings below to read detailed, relevant, up to date information.
Advantages and disadvantages
Advantages of Cayman Islands company registration
- If properly structured, Cayman Islands company can legally house international profits while minimising international taxation;
- A Cayman Islands company is a legal corporate structure with no annual requirement to audit or report accounts;
- Only one shareholder and director are required to complete Cayman Islands company formation. The shareholder and director can be the same person, can be a corporate body, and can be 100% foreign owned;
- The complete absence of direct taxation can be backed by a 20-year government guarantee against the introduction of taxes. To get this guarantee, our Clients must apply for a Tax Exemption Certificate. This means no corporate taxes, no capital gains taxes, no payroll taxes, no property taxes, no withholding taxes. However, Tax Exemption Certificates are available only to exempted companies;
- There are no minimum capital requirements. Government registration fees increase with the amount of issued share capital;
- An exempted Cayman Islands company need not keep a register of members open for public inspection;
- After exempted company formation, the entity can be run from anywhere in the world with no need to hold AGMs. Ordinary non-resident companies do not have the same flexibility;
- The Cayman Islands are a world-renowned centre for financial services, with many investment funds domiciled in the Islands thanks to the efficiency of the local tax and regulatory systems;
- The local currency is easily convertible, as its value is pegged to the US dollar. 1 US dollar = 0.82 Cayman Islands dollars. Consequently, the majority of business done through the Caymans is carried out in USD;
- Because the Cayman Islands are a British Overseas Territory, local laws are based on English law. This makes doing business through the Caymans easy for Clients with expertise in Commonwealth legal systems;
- It is easy to open global corporate bank accounts to support company incorporation. Healy Consultants works with internationally recognised banks such as HSBC, Standard Chartered, and Citibank to provide corporate bank account services;
- After the Cayman Islands government passed an amended bill, foreign individuals who have a net worth of US$7.3 million (KYD6 million) can apply for a Residential Certificate for Investment. This certificate gives the individual the right to reside in the Cayman Islands for up to 25 years, but the individual is expected to abide by a number of laws, including:
- Investing US$2.9 million (KYD2.4 million) in businesses whose workforce consists of at least 50% local Caymanians;
- Passing regular tests to confirm the financial stability of their businesses and their managerial role in their business.
The Residential Certificate for Investment costs US$24,000 (KYD20,000) and also allows the individual’s spouse and dependents to reside on the islands.
Disadvantages of Cayman Islands company registration
- The Cayman Islands are internationally perceived as offshore tax haven;
- An exempt company cannot do business with Clients in the Cayman Islands. However, exempted companies are eligible to carry out international business through a local operation;
- Foreigners may only purchase Cayman property through an ordinary non-resident company and not through an exempted company. This increases the administration associated with owning real estate in the Caymans;
- Because the Cayman Islands has no taxes of its own, it has not concluded many double taxation avoidance treaties. Consequently, Cayman Islands companies are not always the most tax-efficient holding companies;
- Following pressure from the United Kingdom after receiving funding for its economic contraction and capital deficit, the Cayman Islands are in the process of increasing fees and taxes. Annual company fees (for both resident and foreign companies), general registry fees, import duties, and work permit fees, among others, are expected to rise;
- In June 2000, the Cayman Islands were deemed a ‘cooperative jurisdiction’ on tax matters by the Organisation for Economic Cooperation and Development (OECD) in the exchange of information. Cayman Islands have signed a total of 12 Tax Information Exchange Agreements (TIEAs) with countries including Denmark, Faroe Islands, Finland, France, Greenland, Iceland, Ireland, Netherlands, New Zealand, Norway, Sweden, and the United States;
- Banks and Trust companies pay annual fees when registered under the Banks and Trust Companies Law 1995;
- It is important that our Clients are aware of their personal and corporate tax obligations annually. Let us know if you need Healy Consultants’ help to clarify your annual reporting obligations.
Tell us what you need - we’ll send you a customised proposal in 5 hours!
To help us engineer the optimum Cayman Islands corporate structure, please complete the 3-minute questionnaire below; then press the submit button below.
Within 5 hours, one of our senior staff will ring or email you:
- Time to incorporate: One week
- Cost to set up: US$12,612
- Minimum capital: US$0
- Physical office required: No
- Shareholders: 1
- Directors: 1
- Company secretary: No
- Resident director: No
- Corporate tax rate: 0%
- Corporate tax base: Territorial
- Shelf companies: Unavailable
- Main company type: Exempted company
Useful links for Cayman Islands
Government and public authority websites:
- Cayman Tax Authority
- Cayman Islands Companies Registrar
- The Cayman Islands Monetary Authority – the Cayman financial regulator
- Cayman Stock Exchange
- The Cayman Islands Investment Promotion Authority
- Chamber of Commerce
- Cayman airports
- Visiting Cayman