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Understand the Jurisdictions Setup Requirement Before Proceed Your Register Company in Cayman Islands

Why Register a Company in Cayman?

Spanning over 264 square kilometers of land, Cayman Islands are located in the continent of the Caribbean and it is the 215th largest country in terms of land area. Its strategic location in the middle of the Caribbean’s western region has positioned it as one of the important financial hubs in the region as well as the hotbed of investment activities.

The business-friendly environment, stable political climate as well as the world-class facilities on the Cayman Islands is among the factors that boost foreign investment in the country. On top of that, there are no personal or corporation income taxes in the country and the government does not impose taxes on profits and gains from investments.

How to Register a Company in Cayman?

The tax-free status and a well-regulated business environment on the Cayman Islands have prompted many investors to expand their business portfolio in the country. Just like any other country in the world, company registration in Cayman involves certain procedures.

1. Decide the business type
  - Exempted Companies – This type of company has flexibility in naming the company with no requirement to file shareholder’s information. Furthermore, this kind of company is granted a twenty-year guarantee that it is exempted from taxation.
  - Ordinary Resident Companies – An ordinary resident company is usually formed for the purposes of doing local business and a minimum of one shareholder of record and one director is required for the registration.
  - Ordinary Non-Resident Companies – This type of company has the same provisions as for the ordinary companies except the Ordinary Non-Resident Company is prohibited from trading in the Cayman Islands.
  - Foreign Companies – Any existing foreign companies needing to operate in [and from] Cayman must register as Foreign Companies.
  - Partnerships – Limited partnerships can be formed by two or more people (or companies) and this type of companies are governed by the Partnership Law (2002 Revision). This type of company has to be registered with the Registrar of Limited Partnerships.
2. Name the business
  Name the business and check the availability with the Registrar of Companies.
3. Prepare necessary documents
  A memorandum of understanding, articles of association and a cover letter pertaining business proposal are required for the registration purpose.
  - Essential contents of Memorandum of Association
    - The name of the company;
    - The registered company address in the Cayman Islands;
    - A declaration that the liability of its shareholders is limited ( for company limited by shares)
    - The amount of capital (it could be stated in any currency).
  - A minimum of two copies with the filing fee made payable to the Cayman Islands government is required for the registration.
4. Incorporate the company
  All Cayman’s companies must register with the Registrar of Companies where companies can be setup with one shareholder and with no minimum capitalisation requirements (except for Exempted Limited Duration Companies).

The company will be incorporated within four days after the submission of the documents. The next step after the registration of the company will be the opening of corporate account and application of Tax Exemption Certificate.

On a Final Note

As a tax neutral country, Cayman promises a tax-free status for twenty years to exempted companies registered in Cayman. Furthermore, the directors are not required to file accounts or to be audited by the firms. In short, setting up a company in Cayman promises a multiplicity of advantages to investors and tonnes of opportunities for foreign investors to expand their business profile.

For request of quotation and more information about Register Company in Cayman Islands, please email us at [email protected] and we will promptly reply within 24 hours.