Cayman Islands Company Formation

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ENGAGEMENT COSTS

Year 1 incorporation US$7,900 *

Annual fees from Year 2 US$3,600 *

Nominee director fee
US$1,800 **

Company de-registration
US$1,450

* Includes government licence fees, registered office for 12 months, Company secretary fees for 12 months

**Excludes US$1,100 refundable deposit.

Cayman Islands company formation is a tax-efficient corporate solution for international entrepreneurs. The following information will help you determine whether Cayman Islands company formation is the optimum solution to meet your business and personal objectives:

Advantages of Cayman Islands Company Formation

If properly structured, Cayman Islands company formation can legally house international profits while minimising international taxation.

Cayman Islands company formation is a legal corporate structure with no annual reporting, accounting or auditing requirements.

Only one shareholder and director is 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.

Complete absence of direct taxation - no corporation, capital gains, payroll, property or withholding taxes - and this can be backed by a 30-year Government guarantee.

There are no minimum capital requirements with Cayman Islands company formation.

An exempted Cayman Islands company need not keep a register of members open for public inspection.

After Cayman Islands company formation, the entity can be run from anywhere in the world.

It is easy to open global corporate bank accounts to support Cayman Islands company formation. 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$7.3m (6m KYD) 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:

i) Investing $2.9m USD (2.4m KYD) in businesses whose workforce consists of at least 50% local Caymanians

ii) 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 (20,000 KYD) and also allows the individual’s spouse and dependents to reside on the islands.

Disadvantages of Cayman Islands Company Formation

The Cayman Islands is internationally perceived as an offshore tax haven.

A Cayman Islands exempt company cannot trade in the Cayman Islands. The board of directors of a Cayman Islands exempt company are required to hold annual meetings once a year in the islands.

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, business premises fees, import duties and work permit fees, among others, are expected to rise. For more information see the LowTax report.

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.

Considerations for Offshore Company Formation

Offshore companies can be an excellent, tax-efficient vehicle for entrepreneurs to conduct their international business. When selecting an offshore jurisdiction, it is important to evaluate variables such as i) its international reputation for conducting business, ii) legalities that govern investor activity iii) the stability of its economy iv) the political stability of the market.

While offshore corporations can have the significant advantage of legitimately minimising tax obligations, there can also be the disadvantage of carrying the tax haven stigma associated with some jurisdictions. More information on Healy Consultants offshore company services can be found on the following pages:

Offshore company incorporation

ii)

Offshore company set up

iii)

Offshore Company registration

iv)

Offshore Tax Planning

Investing Offshore

For additional information on Cayman Islands company formation, email email@healyconsultants.com or call (+65) 6735 0120.

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