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
