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Enlightens the Business Environment for Company Formation in Cayman Islands
Set up a company in Cayman Islands as it is a sought-after destination for entrepreneurs around the world. Once a British colony, it is now a British Overseas Territory. The tourism sector of the Cayman Islands is a major contributor to the nation's economy, as these islands are the number one destination choice for tourists. With a 0% tax rate and a reputation as a global financial services hub, the islands are an attractive option for entrepreneurs looking to establish their businesses. Furthermore, the minimal compliance requirements make company formation in Cayman Islands a straightforward process.
Why choose Company Formation in Cayman Islands?
Absence of Shares Transfer Tax
One of the major benefits of company formation in Cayman Islands is no presence of any stamp duty or tax for transfer of shares to a third party. However, if the shares are related to investments in the real estate sector, the owner of the company would have to pay the stamp duty and taxes.
Permission for Mergers
This territory permits the merger of the proposed company with another company in the Cayman Islands. The final merger can take place either in that firm or in any other jurisdiction. Usually, the merging firms prefer to stay in the business in the Cayman Islands because of the advantages offered to those firms by the Cayman Islands.
Swift Company Formation in Cayman Islands
The process of Company Formation is extremely quick due to the relatively fewer compliance requirements.
Fewer Capital Requirements in Company Formation in Cayman Islands
Usually, the modus operandi of forming your company is that the companies must require to make a huge deposit in an escrow or bank before initiating the registration of a company. However, for the Company Formation in Cayman Islands, there isn't any minimum capital requirement.
Privacy during Company Formation in Cayman Islands
During your company formation in Cayman Islands, you are not required to submit your personal Documents. The personal Documents include in their ambit the official papers related to the company sought to be registered, and such Documents can be kept with the owner itself. Additionally, there is no requirement for minutes of meeting (MoM) of a shareholder or even an annual audit, as all such records of the Company in Cayman Islands are kept confidential.
Stability
The stable Cayman Island government and rapidly growing economy owing to the powerful banking structure, tourism, and offshore companies have been the driving factors that attract entrepreneurs or make smooth operations in Cayman Island companies.
Setting up for Company Incorporation in Cayman Islands
- We assist in the necessary Paper works for the company incorporation in Cayman Islands.
- We guide you in the reservation of the chosen name of your proposed company for the Company incorporation in Cayman Islands
- We assist in filing the certification application for the Company incorporation in Cayman Islands
- We assist in the preparation of the Memorandum and Articles for the Company incorporation in Cayman Islands
- We provide consultancy on the type of business model and the appropriate registered office location for the Company incorporation in Cayman Islands
- We assist in opening a Corporate Bank Account for the Company incorporation in Cayman Islands
Types of Business Entities in the Company Formation in Cayman Islands
Limited Liability Company
This Company has a separate legal identity; therefore, the members of the Company are not personally liable for the debts and liabilities of the Company.
Foundation Company
A foundation company is a separate legal entity. Memorandum of Association (MOA) and Articles of Association (AOA) are its constitutive Documents.
Resident Company
These companies are usually owned by the residents of the Cayman Islands, and they conduct their business locally.
Non-Resident Company
A non-resident company can obtain non-resident status by applying to the Minister of Finance through the Cayman Island Registrar of Companies.
Foreign Company
A foreign company is a company registered outside the Cayman Islands. It can, however, hold land and conduct onshore business.
Special Economic Zone Company
A special economic zone company is authorized to conduct business according to the Cayman Islands's special economic zone in accordance with any law in force on the islands.
Unlimited Company
In this company, the liability of all its shareholders or members is unlimited. The MOA and AOA should mention the number of members with which the Company proposes to be registered.
Excluded Person Financial Company
This is similar to an exempt company. However, only 1 director and 1 shareholder are needed for the company incorporation.
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Download PDFCayman Island Exempted Company for Company Incorporation on Cayman Island
Cayman Island Exempt Company
The applicants can opt for this type of Company if they want to conduct their business outside of the Cayman Islands. The Cayman Exempted Company can be further classified into:
Exempted Limited Duration Company
This type of Company functions until the terminal time or event specified in its MOA.
Segregated Portfolio Company
An SPC segregates the assets and liabilities of individual portfolios from the company's general assets as well as from other portfolios.
Eligibility Criteria for the Company Formation in Cayman Islands
- Minimum 1 shareholder for business registration
- Atleast 1 directors required for business registration to do business within the Cayman Island.
- No Minimum Paid up capital needed
Documents Required for Company Formation in Cayman Islands
The Documents required for Company Formation in Cayman Islands have been mentioned hereunder:
- Articles of Association
- Memorandum of Association
- Company registers of members and shareholders
- Company registers of directors
- Personal Paper works of all directors and shareholders
- Approval from the Cayman Islands Monetary Authority
- Evidence that the financial statements are accurate
Economic Substance Law and Company Incorporation in Cayman Islands to Conduct a business within the Cayman Island
The majority of locally incorporated companies in Cayman Island are required to comply with the new Economic Substance law, including locally incorporated companies, limited liability companies, limited liability partnerships, and registered foreign companies. The legislation applies to company structures engaged in activities such as banking, distribution, service centre operations, financing and leasing, fund management, headquarters, holding company operations in the Cayman Islands, intellectual property, insurance, or shipping. However, certain company structures, such as limited partnerships, investment funds, and tax-resident business entities in Cayman, are exempt from the law. Insurance companies are also not subject to the new regulation.
Our foreign company incorporation desk shall advise you if you meet the eligibility requirements of this new economic law based on your business activities.
Incorporation Process for Company Incorporation in Cayman Islands
Selection of the business Structure for the Company
The first step of establishing Company Incorporation in Cayman Islands starts with the selection of the business structure of the Company as per its commercial and business activities.
Company Name Reservation
The applicant is required to select a distinct company name and secure its company incorporation in Cayman Islands to register company in Cayman Island. The selected name will only be reserved upon approval from the Company Registry. It is the responsibility of the applicant to ensure that the chosen name is not similar to any other company to prevent duplication of names. If the proposed name includes restricted words or phrases, prior approval from the Registrar is necessary before applying for the company incorporation in Cayman Islands. After the reservation of the company name, the applicant must apply for the company incorporation in Cayman Islands along with the submission of required Documents before the General Registry of the Cayman Islands.
Completion of Company Incorporation in Cayman Islands
The applicant's to form a Company in Cayman Island shall be registered if the competent authority gets satisfy on the application of the proposed company.
Opening a Corporate bank account after Company Incorporation in Cayman Islands
Upon successful company incorporation in Cayman Islands, the applicant must open a corporate bank account in Cayman Island to carry out the business transactions of the proposed company within the Cayman Island to conduct business in the Cayman Islands.
Applying for licenses/permits after Company Incorporation in Cayman Islands
Enterslice shall help you in obtaining the required permits and licenses for your newly incorporated company in Cayman Islands to register a company in Cayman Island.
Receiving Post Registration Documents after Company Incorporation in Cayman Islands
After 2 weeks of your successful company incorporation in the Cayman Islands, you will receive the Documents of your newly incorporated company, Company registration Certificate, Memorandum, and Articles of Incorporation.
Corporate Bank Account Opening after Company Incorporation in Cayman Islands
We at Enterslice shall help you open your corporate bank account in the Cayman Island for your newly setup business. This may take around 4 weeks for Company registration in Cayman Island.
Post Registration Compliances after Company Incorporation in Cayman Islands
We at Enterslice shall help with the annual tax return filing requirements of your newly setup company, monthly bookkeeping, and preparing fiscal statements and will strictly abide by all the latest rules and regulations.
Tax Implication in Company Formation in Cayman Islands
The Cayman Islands generally does not impose a company tax, making it an ideal location for foreign businesses to establish their business entities in Cayman or save revenue from taxation. The Cayman Islands also does not impose any direct tax on its residents, including property tax, income tax, payroll tax, withholding tax, or capital gains tax, making it a tax-neutral jurisdiction and popular among global investors.
Mistakes to be avoided for Company Formation in Cayman Islands
Choosing the right business structure
Choosing the right business structure in the Cayman Island is crucial, as there are 9 prevalent types to consider. Thorough research is therefore necessary before making a decision.
Preparing Documentation
The company must prepare accurate Paper works is also crucial to avoid rejection of your company formation in Cayman Islands application.
Be Compliant
After your successful company formation in Cayman Islands, it is important to stay compliant by registering for tax and VAT numbers to register a company in Cayman Island.
Bookkeeping
For Cayman Company bookkeeping services are essential for all business structures to ensure compliance with tax regulations and timely filing of tax returns.
Company Registration in Cayman Islands: Best Regions
- Georgetown-This is the capital and the financial hub of the Cayman Islands and is the most sought for company registration in Cayman Islands.
- Seven Mile Beach- Many investors prefer this location for their business due to its accessibility to luxury hotels, and infrastructure.
- West Bay: This area lies in the proximity to the Georgetown.
Why are Registered Agent services needed for Company Formation in Cayman Islands?
- To determine the appropriate business model for formation in the Cayman Island.
- To determine the company name available for your proposed company
- To stay compliant with all the latest rules and regulations for the registered office in the Cayman Island.
- To adhere to the post-compliance requirements of annual tax filing, and bookkeeping.
- To perform due diligence to ascertain the accuracy of your Documents
- To open up a corporate bank account for your newly setup company
- To get the appropriate licenses and permits to conduct your business activities post-company formation in Cayman Islands.
Why should you choose Enterslice for Company Incorporation in Cayman Islands?
- 100+ Queries for Company Incorporation in Cayman Islands Daily
- Worked with over 20,000+ Entrepreneurs across the Globe
- AI-powered Chatbot ensuring Timely Support
- Tailor-made company incorporation plans
- Successfully incorporated 300+ Companies in Cayman Islands
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