Success tips when doing business in Cayman Islands in 2023
What are the steps to start a business in the Cayman Islands?
- At the beginning of a business meeting, it is common practice to shake hands and exchange business cards with business partners. Hugging and exchanging of kisses are only suitable for family and therefore should be avoided in business contexts in Cayman Islands;
- Exchange of gifts in a business meeting is not common in Cayman Islands. Government officers are not permitted to receive gifts, apart from diaries or calendars;
- When addressing a person, the common etiquette is to use the first name added by a title (Mr or Miss). This is due to the large number of people having the same family names in Cayman Island such as Bodden or Bush;
- Since the Cayman Islands are a British Overseas Territory, conservative attitudes such as politeness and modesty are strongly appreciated. When greeting a person, it is recommendable to introduce the most senior people first.
Interesting facts about Cayman Islands in 2023
- The islands jut above the Caribbean Sea, formed from the highest portions of a huge oceanic ridge along what is known as the Cayman Trench;
- The Cayman Islands has its own currency, the Cayman Islands dollar;
- There is no income, company, corporation, inheritance, capital gains, or gift tax, property taxes or rates;
- The cost of living is generally higher than in the United States or the United Kingdom as most commodities are imported and the cost of freight and insurance plus customs duty where applicable;
- Departure tax of KYD20 (US$25) must be paid by all persons leaving the Islands (unless already charged on ticket);
- The Cayman Islands were discovered in 1503 by Christopher Columbus;
- The Cayman Islands is regarded as the birthplace of modern scuba diving;
- The island of “Tortuga” referenced in the Disney film “Pirates of the Caribbean” is based upon the Cayman Islands;
- The largest animal which is indigenous to the islands is blue iguana. It is a lizard, colored a characteristic blue and which was on the verge of extinction in 2003 with only 15 iguanas roaming free in the wild;
- More than half of Cayman Islands’ population are expatriates mainly from the UK, the US and Canada;
- Most of the trading partners of Cayman Islands are from the UK, the US, Trinidad, the Netherlands, and Japan;
- In Cayman Islands, there are more registered businesses than people.
Frequently asked questions
How long does it take to incorporate a Cayman Islands company?Registering a Cayman Islands company can be completed within one week.
What are the problems of setting up a Cayman Islands company?A Cayman Islands company is seen as an offshore tax haven and the company is not allowed to trade in Cayman Islands. Forming a company in an offshore tax haven may not be an advantage depending on your business. In February 2020, the Cayman Islands were added to the European Union’s (EU) tax havens blacklist for its failure to implement ‘economic substance’ requirements on local companies in order to crack down on tax evasion.
How difficult is it to open a corporate bank account for a Cayman Islands company?After the Cayman Islands company formation, opening a corporate bank account with a reputable international bank is easy.
Am I required to visit Cayman Islands to incorporate a company there?No. Healy Consultants can legally incorporate your Cayman Islands company without you needing to travel.
What is the minimum number of directors required for a Cayman Islands company?Under statutory regulations, a Cayman Islands company requires a minimum of one director.
Is a resident director required?A Cayman Islands company does not require a resident director.
What is the minimum number of shareholders required for a Cayman Islands company?A Cayman Islands company requires a minimum of one shareholder.
Can my company be 100% foreign-owned?Yes.
Are shareholder/director details available for public viewing?No.
What are the minimum capital requirements for a Cayman Islands company?A Cayman Islands company does not require a minimum share capital to complete company formation.
Is a Cayman Islands company required to submit an annual tax return and/or financial statements?A Cayman Islands company is not obliged to submit an annual tax return and/or financial statements. However, an annual return is required.
What are the tax implications of a Cayman Islands company formation?A Cayman Islands company does not have to pay corporation tax.