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Company Formation in the Cayman Islands – Everything Related
Reasons for Choosing to Set Up a Company in the Cayman Islands
The Cayman Islands was once a British colony and later became a British Overseas Territory with British common law. English is the main language of communication in the Cayman Islands. In addition, there is no need to pay personal and corporate income taxes in the Cayman Islands. For foreign investors, the procedures for setting up a company in the local area are relatively simple, which has attracted many investors.
Exempted companies are the most popular in the Cayman Islands, especially for foreign capital. This type of company enjoys maximum privacy and is tax-free. Companies in the Cayman Islands are regulated by the Companies Act 1961, which attracts a lot of international business. In addition, the Cayman Islands has a developed and stable economy, and owners can easily obtain local support services.
Advantages of Setting Up a Company in the Cayman Islands
The Cayman Islands is now a popular hub for offshore companies. Here are the advantages of setting up a company here:
- Speedy process – No approval from government authorities is required, and the formalities for setting up a company take only one day. In addition, the capital and annual fees required to register a company in the Cayman Islands are relatively low compared to other jurisdictions.
- Stability – The Cayman Islands is politically and economically stable thanks to a structured banking system, tourism and numerous offshore companies.
- Flexibility – The owners, directors, managers and employees of the company need not be Cayman Islands residents. In addition, many regulations also give offshore companies great room for change.
- Whitelist – The Cayman Islands adheres to international tax regulations, which helps avoid being blacklisted by international financial security organisations.
- Zero Base Capital – No need to deposit capital in a bank when setting up a company.
- Mergers – Mergers can be made with businesses anywhere in the world, and the resulting merging company can be located in any jurisdiction, although many companies choose to remain in the Cayman Islands, given the variety of benefits it offers.
- Privacy – There is no need to submit documents to government authorities listing shareholders and directors, and companies are not obliged to hold annual general meetings and conduct annual reviews. Shareholders enjoy absolute privacy.
- No share transfer tax – the company can transfer shares to a third party without paying other taxes such as stamp duty.
- Only one director – The Cayman Islands allows companies to have only one director and shareholder, and the same person can hold both. No other directors, shareholders or officers are required. There is no restriction on the nationality of the directors.
- Meetings can be held at any location – Cayman-based businesses are required to hold annual meetings but may choose to hold them at any location and are not obliged to hold them onshore.
How to Set Up a Company in the Cayman Islands
We recommend that you entrust a law firm to handle the registration procedures on your behalf. You must submit the following information to the relevant firm:
- Company name – representative and verified
- Registered agent and registered office – automatically acted by the legal affairs you entrust
- Shareholder’s name and relevant information
- Names and relevant information of directors and managers
- Annual Fee – The annual registration fee for the Cayman Islands is approximately US$750 (approximately RMB 5031). Registered agent fees are additional.
In the Cayman Islands, after the registration process is completed, the company formation takes only 1 to 4 days, depending on the document processing time.
For more information and guidance on setting up a company in the Cayman Islands, please contact China 3E Accounting Firm. We can assist with registration-related matters.
