Establishing a company in the Caymans
The Caymans are comprised of three small islands in the western region of the Caribbean Sea, located between Belize and Honduras, Cuba and Jamaica. The central island is Grand Cayman, where the majority of the population resides, as well as most of its business activity, also holding the capital city of Georgetown. The islands were first discovered by Columbus in 1503 on one of his journeys to the Caribbean and the Americas. At first it was ruled by the Spanish, but in 1670 it was transferred to the British. It is currently an independent overseas British territory. The local population is very diverse, including Caucasian Europeans, Afro-Europeans, Africans and others.
Island area spans only 264 km2 and the population is only 55,000 people. As it is in the Caribbean, the climate is tropical, meaning hot and humid during both summer and winter months. The rainy season lasts from May to October, and winters are dry. During hurricane season during June-November, the islands suffer periodical tropical cyclone storms. The Caymans are generally typified by rich and luxurious tropical landscapes, long virginal beaches, clear blue waters and tropical tree groves.
- The Caymans are an extremely popular destination for foreign companies. This is evident in the fact that the number of foreign companies registered there is greater than the number of residents.
- Due to its strategic location in the very heart of the Caribbean’s western region, the islands served pirates as an important transition point for centuries. There is still a great deal of “pirate culture” in local folklore and the booming tourist industry.
- Although the islands function as an independent state, the territory is still subject to the British crown in certain respects. They have an internal constitution, and the state is managed by a governor appointed by the Queen. There is also a Legislative Assembly elected every four years. In terms of taxation and economic policy, the Cayman’s function with complete sovereignty.
The major component of the Cayman economy is the financial services sector, registration of companies, a successful tourism industry, and a particularly large shipping industry. The local currency is the Cayman Islands dollar (worth 1.2 USD). GDP is estimated at 2.25 billion USD and per capita income at 47,000 USD, which is the highest rate in the Caribbean and ranked 14th in the world. Local companies law in the Caymans encourages offshore business there, and the tax laws are equally hospitable. There is no requirement of income tax, capital gains tax or corporate tax on the islands. Most of the offshore companies that register there are part of the finance, banking, or hedge funds industries, or investment companies or some kind. To date, the state has been very protective of company owners’ privacy.
Foreign companies that decide to establish a business in the Cayman Islands enjoy various benefits, such as 0% corporate tax, complete confidentiality regarding company office holders, and very quick and simple registration process. However, there are some requirements that must be met, such as reports of fiscal activities and renting local offices on the islands.
General
Type of company |
Exampt |
Relevant Companies Law |
Cayman Companies (Amendment) Law 2013 |
Offices |
Law requires companies to provide a local office address |
Language of original incorporation documents |
English |
Finance and Taxation
Currency |
KYD |
Corporate tax rate |
0% |
Standard share capital |
50,000 USD |
Office Holders
Company Secretary (Secretary) |
|
Obligation to appoint company secretary |
Not required – company may appoint a secretary |
Obligation to appoint local secretary |
Not required |
Type of entity that may function as company secretary |
Individual and/or company |
Director |
|
Obligation to appoint company director |
Required |
Obligation to appoint local company director |
Not required |
Minimum number of directors |
1 |
Type of entity that may serve as company director |
Individual and/or company |
Shareholders |
|
Obligation to register shareholders |
Required |
Obligation to register local shareholders |
Not required |
Minimum number of shareholders |
1 |
Type of entity that may register as shareholder |
Individual and/or company |
Type of shares |
Registered shares |
Accessibility of Information
Company registrar |
Information regarding office holders is not accessible to the public |
Annual Assembly and Reporting
Obligation to hold annual assembly |
Not required |
Obligation to prepare financial reports |
Required |
Obligation to submit financial reports |
Not required |
Accept
