The Cayman Islands are an autonomous British Overseas Territory, located in the Western Carribean. A well known and well established financial centre, it has a zero tax rate and is well known as a base for wealthy individuals and a growing number of companies. So what are the benefits of incorporating in the Cayman Islands?
Minimal reporting and auditing requirements
One of the key benefits of incorporating in the Cayman Islands is the simplicity of maintaining a company there. Unlike some other jurisdictions, there are no cumbersome and time consuming accounting, reporting, or auditing regulations meaning you are not constantly having to submit documents to the authorities every year, or even every six months. They Cayman Islands do not require any of these, meaning you save money and time when it comes to the upkeep of your Cayman Islands business.
In the Cayman Islands there is absolutely zero direct taxation, no corporate tax, no property tax, no capital gains, or withholding tax. This zero rate of tax has been guaranteed by the government for at least 30 years from the time the company is incorporated. This means not only can you enjoy peace of mind, but you can plan ahead without having to worry that tax may be introduced all of a sudden.
Minimal shareholder and director requirements
To set up a company in the Cayman Islands you only need one shareholder and one director. These can be the same person, or a corporate body and there is no requirement for the person to be a citizen or local of the Cayman Islands. In addition to this, the company can be run from anywhere in the world, it does not have to be run locally.
No minimum capital
If you incorporate a company in the Cayman Islands there is no requirement to put down a minimum capital amount. This means it is a great jurisdiction for start ups as there are no hefty amounts of money you need to pay up in order to get started.
Several types of company
When you incorporate a business in the Cayman Islands, there are several varieties to choose from. These include an exempted company which must trade outside of the Cayman Islands and is guaranteed as tax free for 20 years from the date of incorporation. Then there is an exempted limited duration company which cannot trade in the Cayman Islands and is exempt from tax for 30 years. It also preserves the limited liability of members whilst having some of the characteristics of a partnership. These allow advantageous tax treatments for the business and its members in certain other jurisdictions. An exempted limited partnership can be guaranteed as tax free for up to 50 years, it may not trade in the Cayman Islands, but it can partake in local contracts as long as the activity is carried out abroad. You can also consider an ordinary non-resident company, or a segregated portfolio company depending on your needs.
Short incorporation time
Incorporating a company in the Cayman Islands can take as little as one day, as long as you have all of your paperwork in order, including due diligence documents and the memorandum and articles of association. You are also required to register a physical office in the Cayman Islands and provide an affidavit stating that you will not be conducting business inside the country.
To understand more about the different kinds of company, the benefits, and how to go about incorporating, you need the assistance of an experienced professional. Fast Offshore have over two decades of experience in the sector and are perfectly placed to assist you with the guidance, advice, and assistance you need to incorporate your company in the Cayman Islands.