Cayman Islands Company Formation
Cayman Island Company Formation and Company Incorporation
The Cayman Islands, situated 480 miles south east of Miami, enjoy a semi tropical climate and contain a population of approximately 27,000 people of mixed origin. The Islands are a British Crown Colony. Her Majesty the Queen is represented by a Governor who is Chairman of both the Legislative Assembly and the Executive Council.
Cayman Islands Exempt Company Legislation
The principal corporate legislation is The Company Law of the Cayman Islands. This legislation is based on the English Companies Act (1948) and can be found in the Cayman Islands Companies Law of 1960 (amended).
The type of Company used for international business and investment is an Exempt Company.
Time to Incorporate
Under normal circumstances, Cayman Islands Exempt Companies can be incorporated/Registered in 4-5 working days.
Corporate Structure of a Cayman Islands EC
- Only one director required – can be an individual or corporate
- Only one shareholder required – can be an individual or corporate
- A director can be a shareholder and vice versa
- No requirement for Cayman Islands residency for shareholder(s) and director(s)
- A secretary is required – can be an individual or corporate
Confidentiality and Privacy
- The Cayman Islands incorporation documents do not carry the name or identity of the shareholder(s)
- The names of directors and officers are submitted to the Registrar of Companies but are not available to the public
- Shareholder(s) and director(s) nominee services are allowed to ensure confidentiality of beneficiaries
Capital Structure of a Cayman Islands Exempt Company
- Shares can be issued with or without par value
- Shares may be issued in any legal currency or in more than one legal currency
- Shares may be paid up in cash or through the transfer of other assets or for other consideration
- The standard share capital is USD $50,000 or an equivalent in another recognizable currency
- The minimum paid in and issued capital may be one share
- Bearer shares are permitted but must be held by an authorised or recognised custodian as approved by the Cayman Islands Monetary Authority
There are no taxes in the Cayman Islands on income, capital gains, profits, dividends, investments or capital transfers. The company receives a twenty year guarantee against taxation from the Cayman Islands Government, which may be extended to thirty years on application.
Financial Statements and Company Records
There is no requirement to file accounts with the registrar. However, an annual return must be filed. The return takes the form of a simple declaration.
Meetings of CAYMAN ISLANDS Shareholder(s) and Director(s)
- There is no requirement for meetings of shareholder(s).
- One directors’ meeting a year must be held in the Cayman Islands (the use proxies is permitted).
Doing business using a Cayman Islands Exempt Company
A Cayman Islands Exempt Company can carry out any legal business and/or investment activity worldwide, they may not offer bank, insurance or trust services without prior authorization from the Cayman islands Monetary Authority.
Generally Cayman Islands Exempt Company´s cannot do business with Cayman Island residents or corporations.
The Cayman Islands EC incorporation package includes:
- First year government filing fees
- Certificate of Incorporation
- Memorandum and Articles of Association
- Letter of appointment of first director
- Nominee shareholder details (if required)
- Declaration of Trust from the nominee shareholder (if a nominee shareholder is required).
- Minutes of the first meeting of the founders
- Share Certificates
- Register of Shareholders
- Register of Directors
- Registered agent services, (first year)
- Registered office, (first year)
- International express delivery by FedEx or DHL
The name of a new company must not resemble a name of an existing company. The following words, and their associated activities, cannot be used: Assurance, Bank, Trust, Insurance, Chartered, Company Management, Mutual Fund, or Chamber of Commerce, unless the necessary licenses under relevant laws have been obtained.
There is no requirement to utilize a suffix to denote limited liability, although normally companies are incorporated using Limited, Corporation or Incorporates or the appropriate abbreviation thereof.