The Cayman Islands Exempted Companies or more commonly known as Offshore companies that registered in the Cayman Islands must pay an annual fee to the Cayman Islands Company Registry to maintain their good standing. The fee of the Cayman Islands Exempted Company amount depends on the company's structure and share capital. For instance, resident companies with a share capital up to KYD 42,000 are charged KYD 300 annually, while those with a share capital exceeding that amount pay KYD 500.
Penalties apply when there is a failure in the payment of these recurrent fees or the annual returns are not filed by the deadline, usually the last working day of March.
Default in submitting annual returns and fees shall incur a penalty of:
33.33% of the annual fee if submitted between 1st April & 30th of June
66.67% of the annual fee if submitted between 1st July & 30th of September
100% of the annual fee if submitted between 1st October & 31st of December
After 12 months of failure to make the return and pay an annual fee to the Cayman Islands Company Registry, the company SHALL be deemed DEFUNCT and subject to removal (struck) from the register.
Moreover, an announcement is made by the registry in October 2024, starting 1st January 2025, the annual fees of the Cayman Islands Exempted Companyare set to increase.
For companies to avoid these penalties and sustain their good standing with the authorities, it is important that prescriptive dates and fee payment requirements are met and followed.
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