The guide for Cayman Islands Company Formations in 2024

The Cayman Islands boasts a thriving financial services sector, firmly backed by government support for its ongoing growth. With a burgeoning reputation, especially in Asia, it stands out as a preferred offshore destination, endorsed by the Hong Kong Stock Exchange for public listings. Notably, the Cayman Islands set up its own stock exchange back in 1997. For comprehensive details, visit the official government website.

Top 5 Advantages of Company Registration in the Cayman Islands:

1. 0% Tax of any form
2. Registers of company members are private
3. No accounting or auditing
4. Simple to incorporate remotely
5. A trusted, best-seller jurisdiction for investing and tax planning

Here’s a detailed roadmap outlining the steps to register a company in the Cayman Islands:

Initial Consultation and Agreement:

Contact a reputable legal or corporate service provider in the Cayman Islands, such as LegalBison, to discuss your company formation needs.

During this consultation, you’ll discuss the type of entity you wish to form, ownership structure, business activities, and any specific requirements you may have.

Once you’ve reached an agreement with the service provider, you’ll proceed to the next step.

Payment of the Full Invoice:

After the initial consultation, you’ll be provided with an invoice outlining the costs associated with the company formation process.

Make the payment for the full invoice amount as per the agreement with the service provider.

Notarization of Power of Attorney (POA) [If Remotely]:

If you’re registering the company remotely, you may need to notarize a Power of Attorney (POA) allowing the service provider to act on your behalf in the registration process.

The POA may need to be notarized in your home country or jurisdiction.

Preparation of Registration Documents:

The service provider will prepare all the necessary registration documents required for incorporating your company in the Cayman Islands.

These documents typically include the Memorandum and Articles of Association, shareholder information, director information, and other relevant forms.

Document Signed at the Notary:

If applicable, you’ll need to sign the prepared registration documents at a notary public.

This step ensures the authenticity of your signatures and may be necessary for remote company formation.

Submission and Registration:

Once all the necessary documents are prepared and signed, the service provider will submit them to the Cayman Islands Registrar of Companies for registration.

The Registrar will review the documents and, upon approval, officially register your company.

Official Registration Validity:

Upon successful registration, your company will be officially recognized as a legal entity in the Cayman Islands.

You’ll receive a Certificate of Incorporation and other relevant documents confirming your company’s registration.

Post-Registration Compliance:

After registration, there may be additional compliance requirements such as obtaining business licenses, permits, tax registration, etc.

Your service provider can guide you through these post-registration obligations to ensure your company remains compliant with Cayman Islands laws and regulations.

Overall, the entire process of registering a company in the Cayman Islands can typically be completed within 5-10 working days, and it can be done entirely remotely with the assistance of a trusted legal or corporate service provider.

Taxes in the Cayman Islands

How high are the corporate income tax in Cayman Islands?

There are no corporate, capital gains or withholding taxes on any type of company registered in the Cayman Islands.

What Double-tax treaties has Cayman Islands?

The Cayman Islands have limited Double Tax Treaties in force with the following countries: Japan, New Zealand, United Kingdom The Cayman Islands have signed Tax Information Exchange Agreements (TIEA) with the following countries: Argentina, Aruba, Australia, Canada, China, Czech Republic, Denmark, Faroe Islands, Finland, France, Germany, Greenland, Guernsey, Iceland, India, Ireland, Isle of Man, Italy, Japan, Malta, Mexico, the Netherlands, New Zealand, Norway, Poland, Portugal, the Seychelles, South Africa, Sweden, the UK and the USA.

For company registration in the Cayman Islands, certain documents and information are required:

• Passport Copies: Scanned copies of passports for all individuals involved, including shareholders, board members, and beneficiary owners if applicable.
• Power of Attorney: In case of remote registration, a Power of Attorney may be required. This document authorizes someone to act on behalf of the company during the registration process.
• Certified Company Documents: If a foreign company is involved as a shareholder, certified company documents may be necessary.

Information needed includes:

• Company Name Options: Provide three desired company name options and a company contact email address.
• Details of Shareholders and Board Members: Names, addresses, and email addresses of all shareholders and board members.
• Description of Company Activity: A brief description of the company’s intended activities.

Regarding remote incorporation:

The entire incorporation process can be conducted remotely without the need for travel.

Notarization of documents, including the Power of Attorney, is necessary.

Some documents may require legalization by apostille, depending on the country’s requirements.

The Cayman Islands are part of the Hague Convention, simplifying the apostille process.

For accounting and auditing:

The only filing obligation in the Cayman Islands is an annual return, which does not require financial statements.

The annual return declaration should confirm adherence to Companies Law, minimal changes to the Memorandum of Association, and mainly operating outside the Cayman Islands.

Residential requirements:

All companies in the Cayman Islands must have a registered address, which is provided during company registration.

FionzaConsulting offers assistance with these requirements and provides local support on the ground. Speak with one of their consultants for free to initiate your business setup process.