Cayman island

Overview

The Cayman Islands is a British Overseas Territory located in the Western Caribbean Sea. The territory comprises the three islands of Grand Cayman, Cayman Brac, and Little Cayman, located south of Cuba and northwest of Jamaica.  The main island, Grand Cayman, is situated approximately 480 miles southeast of Miami. The population is approximately 55,000. The government system is a parliamentary democracy; the chief of state is the queen of the United Kingdom, and the head of government is the premier. The Cayman Islands have a mixed economic system, and the islands are a thriving offshore financial center. The economy of the Islands is strong, enjoying full employment with most of the revenue being derived from the financial services sector and tourism. There is Exempted company and a Non-Resident company in Cayman, but we are mainly stressing by Exempted company in this article. There is no need to file an annual financial report or paying any taxes.

 

Corporate Requirement

  • Company Name: Chinese name allowable, and is allowed to add Chinese name into the company memorandum and articles.

  • The company name ending normally ends with Limited, Corporation, Incorporated and etc., AVOID using the words such as Assurance, Bank, Society, Trust, Insurance, Royal and etc.

  • No minimum registered capital, standard registered capital at USD50,000 with par value of USD1.00. There will be extra charges for capital exceeds USD50,000 for capital tax and filing fee.

  • Has to appoint at least one director:

    • Can be individual or corporate.

    • Can appoint shareholder or somebody else.

    • Director has to be at least 18 years old.

  • At least one shareholder

  • Not required for company secretary.

  • Required to file in the company director and official information to registry for public searching purpose.

  • No disclosure of beneficial owner, only files in registered office.

 

Company Characteristics

  • Political and economically friendly, trading friendly, good reputation globally.

  • Tax exempted for both individual and company in Cayman Island.

  • Well-known in the financial industry, well suit for international servicing companies such as international consulting companies, venture capital, or fund management company.

  • No annual general meeting required, at the same time, no need for submission of an annual financial report and annual audit report to the government. The annual fee of the company has to be paid before 31st December regardless of incorporation date to avoid late penalty charges.

  • Can be listed in Hong Kong, Nasdaq in the US and the main securities market in the world, and is allowed to have a bilingual certificate of incorporation for a listed company, thus make it attractive for the investor.