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Off-Shore Jurisdictions - Cayman Islands

The Cayman Islands consist of a group of three islands in the Caribbean. The main island, Grand Cayman, is situated approximately 1150 kilometers south of Florida. The economy of the islands is strong enjoying full employment with most of the revenue derived from the financial services sector and tourism.

The Cayman Islands are a British colony and therefore the United Kingdom Parliament at Westminster retains the right to legislate. The islands have a Governor who is appointed by the Queen who heads the Cayman Islands Government and is responsible for the civil service, defense, law and order and external affairs.

The type of company for international trade and investment is Exempt Company. Cannot trade within the Cayman Islands, own real estate in the Cayman Islands. Cannot undertake the business of banking, insurance business or mutual fund business unless licensed. Cannot solicit funds from the general public.

Name restriction on Exempt Company includes "Bank", "Insurance", "Assurance", "Re-Insurance", "Trust", "Municipal", "Charter", "Co-Operative", their foreign language equivalents or, in the opinion of the Registrar, any word that would suggest a connection with a Royal family or Government authority.

Names requiring consent or license are those with "Bank", "Building Society", "Savings", "Loans", "Insurance", "Assurance", "Re-Insurance", "Fund Management", "Asset Management", "Trust", "Trustees" or their foreign language equivalent.

There is no requirement to utilize a suffix to denote limited liability; although normally companies are incorporated to include the suffixes "Limited", "Incorporated", "Corporation" or their abbreviations.

The minimum is U.S.$1.00, but it is normal to incorporate with an authorized share capital of U.S.$50,000; divided into 50,000 common voting shares of US$1, this being the maximum for the minimum Capital Duty payable to the Registrar of Companies upon incorporation. The minimum issued share capital is one share of no par value or one share of part value.

Classes of shares that are permitted in Cayman Islands:

 

  • Registered shares of par or no par value
  • Bearer shares
  • Preference shares
  • Redeemable shares
  • Voting or non-voting shares.

There is no form of taxation in the Cayman Islands relating to individuals, corporations or trusts. The Cayman Islands has no double taxation agreements.

License Fees for exempt companies with a share capital not exceeding U.S.$50,000 = U.S.$500.For exempt companies with a share capital greater than $50,000 but not exceeding U.S.$2,000,000 = U.S.$700.For exempt companies with a share capital exceeding U.S.$2,000,000 = U.S.$1,750.

 

Information Checklist

 

GENERAL

Political Stability                                              Good

Common or Civil Law                                      Common

Type of Company                                            NR/Ex

Disclosure of Beneficial Owner                        No

Migration of Domicile Permitted                       No

Tax on Offshore Profits                                   Nil

Non-English Language Names Allowed           Yes

Currency                                                         Cayman Dollar. 1 Cayman Dollar = USD1.20

Exchange Control                                           None.

Incorporation Time Scale                                2 days.

CORPORATE REQUIREMENTS

Minimum Number of Shareholders                  One

Minimum Number of Directors                         One

Bearer Shares Allowed                                  (Ex)Yes

Corporate Directors Permitted                        Yes

Company Secretary Required                         No

Standard Authorized Share Capital                $50,000

LOCAL REQUIREMENTS

Registered Office/Agent                                  Yes

Company Secretary                                        No

Local Directors                                                No

Local Meetings                                                No

Government Register of Directors                   No

Government Register of Shareholders            No

ANNUAL REQUIREMENTS

Annual Return                                                 (Ex)No

Submit Accounts                                             No

RECURRING GOVERNMENT COSTS

Minimum Annual Tax/License Fee                   $427/$500

Annual Return Filing Fee                                 N/A