UK Client registers a Cayman Islands Proprietary Crypto Fund

Since 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.

• Engagement planning

  • 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.

• Engagement completion

  • 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.