The Cayman Islands, a British Dependent Territory in the Caribbean Sea south of Cuba, were discovered by Christopher Columbus. The financial services industry is one of the Cayman Islands’ primary industries, and there is a significant commitment to the continued development of the offshore financial services industry. The Cayman Islands’ reputation and popularity have grown significantly for company formation cayman islands, particularly in Asia. It is one of the offshore centers approved by the Hong Kong Stock Exchange for public listings in Hong Kong. In 1997, the Cayman Islands established its stock exchange.
The Cayman Islands Companies Law governs the Cayman Islands Exempted Company’s operations.
Incorporation Requirement
The requirements for forming a company in the Cayman Islands are among the laxest globally. A minimum of one shareholder is required, who can be a person, a company, or a trust. Furthermore, at least one director is required for company formation, though there are no residency requirements for a Cayman Island company’s director or company secretary.
A company is not required to have its books audited or file annual reports with the Cayman Islands authorities (unless it is a registered fund or otherwise licensed or regulated). On the other hand, a company must keep historical records that provide a true and accurate picture of its operations. There are no taxes on income, capital gains, profits, dividends, investments, or capital transfers in the Cayman Islands. The Cayman Islands Government provides the company with a twenty-year guarantee against taxation, which can be extended to thirty years on application.
Shares can be issued in any currency and any denomination. There is no prescribed minimum or maximum amount for authorized, issued, or paid-up share capital (although at least one share must be in issue at all times).
The Cayman Islands provide various business advantages, most notably the absence of taxation for locally registered companies and a high level of banking security and professional services. Many people who refer to the Cayman Islands as a tax haven may not understand the concept of banking secrecy. The Islands have signed several bilateral agreements to automatically exchange financial information, which affects citizens of signatory countries who open a non-resident bank account. In the case of countries that have not signed this type of bilateral agreement, the reporting obligations do not apply.
All overseas companies incorporated for less than one year must provide a Bank Signatory from the company/directors / principal shareholders / beneficial owners.
What you can prepare before the formation
There are a few documents required in the incorporation application.
The required basic documents are:
- Certificate of Incorporation and any Certificate of Change of Name (if applicable)
- Certificate of Good Standing (if established over 12 months ago)
- Memorandum and Articles of Association
- Register of Directors and Officers
- Register of Members and Shareholders
- Personal documentation for all authorized signatories
- Personal documentation for a minimum of two directors
- Personal documentation for all voting/management shareholders with holdings of 10% or more.
Who you should seek for
There must be at least one director and one shareholder in the Company. A natural person or a corporate body must be both a director and a shareholder of the Company. You can also seek professional help in this process. There is no requirement to appoint a local director or shareholder. As a result, the director and shareholder can be of any nationality and are not required to be Cayman Islands residents.
Conclusion
The Cayman Islands offer a tax-free business environment, very low corporate maintenance requirements, and a high level of investor protection. This is possible because the identities of the company’s shareholders and directors are not required to be disclosed.
The Cayman Islands company is a business structure that offers numerous benefits to foreign investors looking to establish an offshore company that is 100% foreign-owned and not subject to taxation. Because of simple to register and have no tax, Cayman is now becoming more and more trendy for blockchain-related business
In addition to forming a new company in the Cayman Islands, investors interested in Cayman Islands company formation can seek professional assistance.
