Other than being a vacation destination, the Cayman Islands remains one of the focal points for going offshore around the world. In case you're checking out this excellent offshore jurisdiction for your company setup, this is the correct blog to invest your time in!
This blog will cover all the vital highlights of incorporating a Cayman Islands exempted company. Let’s dive deep and learn more:
What is a Cayman Islands Exempted Company?
A Cayman exempted company is a firm incorporated under the Companies Act of the Cayman Islands. What distinguishes it from the ordinary company is that it cannot carry out businesses within the geographical boundary of the Cayman Islands. Moreover, it possesses a separate legal identity, enabling it to perform functions in full capacity.
Key Features of a Cayman Exempted Company
The following are the top features of an exempt private company:
- No requirement to hold an annual general meeting
- No requirement for resident director
- Shares can be issued with a nominal or no par value
- Capital can be expressed in any currency or multiple currencies
- No requirement to keep the register open for public inspection
- No local business allowed
Benefits of Setting Up a Cayman Islands Exempted Company
There are numerous benefits of setting up a Cayman Islands offshore company. Let’s have a look at each:
International Trade
A Cayman Islands exempted company cannot trade within the boundaries of the islands. However, you can easily trade across the globe without any hassle.
Tax Advantages
A Cayman exempt company does not have to pay corporate tax, income tax, capital gains tax, inheritance tax, gift tax, or wealth tax on any offshore business. Moreover, exempted companies are also entitled to apply for tax exemption and obtain a Cayman Islands tax exemption certificate.
No Currency Restriction
As per Part 3 of the Companies Act of the Cayman Islands, a Cayman exempted company can specify its capital in any currency or multiple currencies.
No Currency Exchange Regulations
There are no exchange control regulations or currency restrictions in the Cayman Islands. This ensures that funds can be freely transferred in and out of the Cayman Islands.
Easy Incorporation Setup
It is easy to incorporate a company in the Cayman Islands due to its business-friendly and efficient regulatory framework.
How to Register a Cayman Islands Exempt Company?
Setting up a Cayman exempted company requires you to follow the steps mentioned below.
Get Expert Guidance
It is highly recommended to hire an expert agent in the Cayman Islands to register your Cayman exempted limited company. The offshore business consultant typically has in-depth knowledge of the local requirements and ensures you remain compliant.
Fill Out the Form
The agent will guide you in filling out the form. Typically, a company registration form requires your personal details, company details, registered address and phone numbers, share capital details, and so on.
Submit the Documents
You must submit the following documents to register a Cayman exempted company:
- Photocopy of passports of the director(s) and shareholder(s)
- Address proof of the director(s) and shareholder(s)
- Bank reference letter
- A completed company registration form
- A comprehensive business plan
- Memorandum of Association and Articles of Association
Note:
Memorandum of Association must contain the name of the company, details of subscribers, number of shares allocated, company’s objectives, location of the listed office, approved share capital, and so on.
Similarly, articles of association must contain the information about the shares, such as issuance, types, rights of shareholders, payments of dividends, and so on.
Wait for Approval
Once you have filed the form and submitted the documents, you must wait for approval of the company registration from the authorities.
Open a Bank Account
Once your business is set up, you can open an international bank account and carry out transactions across the globe without any hassle.
Why Choose BSW?
Choosing the Cayman Islands exempted company is an ideal way to get started with company formation. Navigating the regulatory requirements can be cumbersome for any new business owner. That’s where Business Setup Worldwide steps in.
- We have served over 7000 clients.
- We offer services in over 50 jurisdictions.
- We have over 8 years of experience with company formation services.
- We offer affordable Cayman Islands company setup costs and a range of services such as nominee director services, accounting and bookkeeping services, and more.
Our trusted advisor helps you surpass all the hurdles related to offshore company formation and ensures your firm is set up quickly. Contact us now to get started!
