Cayman Islands client case studies in 2023
UK Client registers a Cayman Islands Proprietary Crypto FundSince 2003, Healy Consultants Group assists multinational Clients with business setup in Cayman Islands including i) company incorporation ii) corporate bank account opening iii) company secretary and legal registered office iv) regulatory license applications v) beneficial ownership registration vi) tax registration certificate application vii) assistance to source physical office premises or virtual office address and viii) employee recruitment and visas.
In September 2021, our UK Client approached Healy Consultants Group to i) register a Cayman Islands exempted company and ii) open a multi-currency corporate bank account. Our Client plans to use this legal entity to i) hold and trade crypto-currency (proprietary investments) and ii) supply consultancy services related to digital asset investments.
After a brief email and phone exchange with me, our Client settled Healy Consultants Group’s Cayman Islands business setup fees. These fees include i) our time to incorporate the Cayman Islands entity ii) registered legal address and provision of local company secretary and iii) open an international multi-currency corporate bank account for our Client, without travel.
- The Client engaged us on 09 September 2021. We agreed an instalment plan for this engagement. Upon the first instalment payment, I sent our Client a paid invoice, and we were then able to begin the engagement.
- Immediately thereafter, we conducted a video call to agree i) the optimum corporate structure ii) simple, practical strategies to legally minimise international tax iii) engagement deadlines and mile stones iv) alternative zero tax juridictions to the Cayman islands and v) potential engagement challenges. My Client still decided to proceed with the Cayman Islands, because this juridiction is one of the most crypto-friendly places in the world.
- I e-mailed our Client a detailed engagement project plan outlining i) instalment plan of Cayman Islands incorporation fees ii) documents required to progress the incorporation iii) a breakdown of weekly and monthly deliverables iv) an estimated timeline to complete the engagement and v) a summary of all possible engagement problems expected during the engagement, and their solutions.
- Following completion of the above, the detailed engagement project plan which helps our Client to visualise the engagement over the coming months, so they can prepare the necessary documents to enable our team to complete the engagement in a timely manner.
- Simultaneously, our UK Client supplied us the required Know Your Customer due diligence documents.
- My staff and I were now ready to project manage the Cayman Islands engagement.
Cayman Islands company incorporation
- Our Client confirmed the corporate structure of the Cayman Islands entity, including shareholders and directors, enabling us to initiate company setup.
- Within two weeks, the Cayman Islands Registry approved the company registration and issued company numbers. This means our Client’s company could legally conduct business internationally, including signing contracts with customers and issuing sales invoices.
- We then emailed our Client the Cayman Islands corporate documents including i) Certificate of Incorporation ii) Register of Directors and iii) Memorandum and Articles of Association.
- It took me about two weeks to incorporate the company.
- After immediately securing the company numbers, Healy Consultants Group applied for a Tax Exemption Certificate for our Client’s business with CIMA.
- Throughout the engagement, I supplied our Client with a weekly detailed engagement status update including i) quality deliverables and ii) problems and solutions.
International corporate bank account opening
- To increase the probability of success in opening a corporate bank account for our Client’s business, we prepared a detailed business plan to submit to interested banks. This business plan included i) details on the company’s core activities ii) financial projections iii) market analysis and iv) corporate structure.
- To avoid any delays, we prepared the first draft of the business plan at the beginning of the engagement, before we had received the corporate documents of our Client’s business.
- I e-mailed the business plan to my Client for signature and return to me.
- I then prepared complete bank account opening forms and submitted them to at least five different banks with a view to receiving their confirmation that they welcome an application from my Client’s company.
- I supplied our Client a list of banks that had shown interest in onboarding their business.
- We received preliminary interest from one bank, and I was able to arrange for the Client to have a call with the bank officer.
- The Christmas 2021 holidays delayed the completion of the application. Once Christmas was over, I completed the bank’s account opening application and sent it to my Client for review.
- Even with Covid restrictions, I was able to get the bank to agree to i) my Client not needing to travel to meet the bank officer and ii) a waiver of original notarized documents.
- Within 2 ½ months, the bank sent corporate bank account numbers directly to my Client.
- Within two weeks of receiving the account numbers, the bank activated our Client’s internet banking. Our Client now have access to their bank account remotely from anywhere in the world.
- Following engagement completion, Healy Consultants Group couriered a full company kit to our Client, including i) a Cayman Islands certificate of incorporation and ii) M&AA.
- Simultaneously, I emailed our Client a proforma Cayman Islands sales invoice on our Client company headed stationery complying with Cayman Islands commercial law including i) company name and number ii) corporate tax number and iii) legal registered office address.
- For staff learning purposes, our UK Client supplied us an engagement feedback.
- Our Business Website Department also requested a professional reference from our Client as well as an online review.
- Annually thereafter, Healy Consultants Group in-house Accounting and Tax Department assists our Client timely accurately and completely discharge their Cayman Islands renewal and economic substance reporting obligations.
Cayman Islands Venture Capital Fund obtains offshore bank account
- Our Client is a venture capital firm registered in the Cayman Islands. The fund is a closed group of Saudi investors focused on funding for seed and early stage start-ups in Saudi Arabia and the MENA region.
- After the success of the Client’s first venture capital fund in 2015, they decided to raise another venture fund in 2020 approximately US$113 million in value.
- Our Client was looking to obtain a bank account for the fund management company, which will be responsible for all administration and management activities of this venture fund, including deal sourcing, global HR and finalisation of an investment algorithm.
- Healy Consultants Group met our Client in our Dubai office, where our Client disclosed the complicated shareholding structure of the management company, with multiple Saudi corporate shareholders.
- After the meeting, we emailed our Client an engagement advancement proposal and the formal invoice, including a detailed list of documents required for the bank account opening process.
- Our Client was interested to open an offshore corporate bank account. Healy Consultants informed them that, given the business activity and corporate structure, account opening would be very slow and multiple banks might reject the application.
Corporate bank account opening
- Healy Consultants Group crafted a quality detailed business plan outlining the company’s core activities, financial projection, market analysis, corporate structure and previous fund details.
- Once the business plan was approved and signed-off by our Client, we prepared complete bank account opening forms and submitted them to different banks across the globe to secure their interest in onboarding our Client’s business.
- We shared a detailed feedback report with a list of banks that had been contacted and had shown interest. The Client was then supplied with detailed bank criterion documents for multiple European and Asian banks.
- Our Client selected a Malaysian bank as the preferred corporate banking partner option and a Mauritian bank as their back-up option. Healy Consultants Group received and prepared corporate bank account opening forms for our Client’s preferred bank and emailed our Client the same for review and input.
- We then advanced the Client’s application with our Client’s preferred banks and obtained waivers for non-travel solutions for our client. To avoid any delays, due to the then prevalent COVID-19 pandemic and the lockdowns, we secured multiple waivers with interested banks to supply original notarised documents before account opening.
- The Malaysian bank reverted requesting additional documents including i) operating agreement of our Client’s Delaware company ii) lease agreement for the operating office and iii) declaration of operating office by our Client.
- Within four weeks the bank confirmed that compliance checks were complete and informed us that our Client’s business had been green lighted by the Malaysian bank’s compliance and onboarding departments.
- Two weeks after that, bank account numbers issued and shared directly with our Client. Our Client was now required to make the initial capital injection within 30 days of the account opening.
- Two weeks after that, internet banking tokens were sent were sent to our Client’s preferred address in Saudi Arabia; Our Client could now access their bank account remotely from anywhere in the world.
- Throughout the multi-currency corporate bank account opening process, Healy Consultants Group aggressively and skilfully liaised with bank officers to complete the due-diligence and the onboarding process as soon as practical.
- Upon completion of the engagement, we couriered a complete corporate bank account pack, with e-banking tokens, to our Client’s preferred mailing address.