Exempted Company (Company limited by shares)
The Cayman Islands has an excellent legal, fiscal, financial and professional environment for the incorporation of international business companies.
The jurisdiction is a world leading offshore financial services jurisdiction. due to its political and economic stability, and its broad offer of banking, trust, hedge fund formation and investment, structured finance and securitisation, captive insurance, and international business services.
The Companies Law 1961 (as amended in 1990, 1995, 2004, 2007 and 2010) is based on English Common law and governs the incorporation of the Exempted Companies, Cayman’s most popular offshore company.
Exempted companies are entitled to do business outside Cayman Islands and may have restrictions to trade with Cayman residents. However, exempted companies are allowed to conclude contracts in Cayman or exercise any of its powers in Cayman to carry out business outside the Islands, including open and maintain bank accounts and rental or ownership of real estate in the jurisdiction.
Exempted companies are not allowed to make any invitation to the public in Cayman to subscribe its shares or debentures.
In Cayman Islands, there are no direct taxes. No corporation tax, income tax, capital gains tax, inheritance tax, gift tax, nor wealth tax. Transfer of shares are not subject to stamp duty, unless the Exempted company holds property within the islands. Certain documents may also be subject to a nominal stamp duty.
There is no exchange control and no restrictions on the movement of funds to or from the Islands.
In addition, exempted companies may request to the government a Certificate of up to 50 years tax exemption against any future Cayman Islands taxation.
Exempted companies are flexible corporate structures, not requiring any resident directors or officers, the register of shareholders and minute books can be held anywhere and annual general meetings of shareholders are not mandatory and can be held anywhere.
No minimum capital requirements and shares may be with or without par value, issued at a premium over par value, in fractions of a share, preferred, deferred, or other special rights.
Annual reporting filings are minimal, there is no need to file financial statements and audits are not required, unless company is an investment fund regulated by the Cayman Islands Monetary Authority.
Reporting requirements are limited to an annual return stating whether there has been a modification of the Memorandum of Association and confirming that no business has been conducted within the jurisdiction.
Exempted companies also benefit from confidentiality. Details of company members are not required to be filed with the Registrar of Companies and the Confidential Relationships (Preservations) Law 1976 makes it a criminal offence for any person to divulge confidential information to a third party.
Exempted companies are an excellent vehicle for fund and international investment management, as they may be registered as Segregated Portfolio Companies (sometimes referred as protected cell companies).
This company structure separates the assets and liabilities held in one portfolio from other held in another portfolio and/or from the assets of the company not attributable to any particular portfolio.
Creditors of a “portfolio” are unable to seek recourse from the assets of any of other or from the general assets of the company. This corporate vehicle provides protection contagion to fund promoters as an umbrella unit trust.
In addition, this corporate structure provides several cost savings such as avoiding to setting up new entities, lower costs on corporate governance, company administration and compliance.
Companies incorporated in Cayman also benefit from a wide range offer of financial and professional services. There are about 324 banks and trust companies licensed in Islands, including 47 of the 50 largest banks in the world and high-end professional services, including lawyers, accountants, insurance managers, mutual fund managers and administrators, among others.
Furthermore, the Cayman Islands has also an internationally renowned ship and aircraft registries.
The Cayman Islands has agreed to implement the OECD’s automatic exchange of information for tax purposes (AEoI) and is not considered as a non-cooperative country and territory by the Financial Action Task Force.
All in all, the Cayman Islands is a sophisticated financial center and its exempted company, a powerful corporate vehicle for international investment, fund and wealth management.
Country code – KY
Legal Basis – Common law
Legal framework – Companies Law
Company form – Exempted Company (Company limited by shares)
Liability - The liability of the shareholders for the company is limited to the amount of their respective shareholdings.
Business restrictions – Exempted companies are entitled to do business outside Cayman Islands and may have restrictions to trade with Cayman residents. However, exempted companies are allowed to conclude contracts in Cayman or exercise any of its powers in Cayman to carry out business outside the Islands, including open and maintain bank accounts and rental or ownership of real estate in the jurisdiction.
Exempted companies are not allowed to make any invitation to the public in Cayman to subscribe its shares or debentures.
Share capital – There is no authorized share capital established, and shares may be denominated in one or more currencies. Shares may be with or without nominal or par value, issued at a premium over par value, in fractions of a share, preferred, deferred, or other special rights. Bearer shares are not allowed. Shareholders' details are not publicly available. Nominees are allowed.
Shareholders – Exempted companies may be incorporated by one or more shareholders, who can be either natural or legal persons, residents or non-residents, without restrictions. Details of shareholders are not publicly disclosed.
Directors – At least one director is required, who may be a natural person or a legal entity. Directors’ details are not available to the public. Nominee directors are permitted.
Secretary – The appointment of officers such as a secretary is optional, and may be an individual or a corporation, resident or non-resident.
Registered Address – An Exempted company must have a registered office in Cayman Islands, provided by a licensed service provider.
General Meeting – Annual general meetings are not mandatory. However, if meetings are held, they can be anywhere in the world and may be by proxy. Minutes of the meeting must be taken but minute book can be kept anywhere.
Electronic Signature – Permitted.
Re-domiciliation – Inward and outward re-domiciliation is allowed.
Compliance – Cayman Islands’ exempted companies must keep accounting records. The records may not be kept in Cayman, but must be made available at the registered office if an order or notice for production under the Tax Information Authority Law is made.
Exempted companies are not required to file financial statements, nor tax return. An annual return must be submitted annually stating whether there has been a modification of the Memorandum of Association and confirming that no business has been conducted within the jurisdiction. Exempted companies are also required to pay an annual government fee, of which its amount will be according the company authorized share capital.
- Shareholders not disclosed
- Directors not disclosed
- Corporate shareholders permitted
- Corporate directors permitted
- Local director required
- Secretary required
- Local secretary required
- Annual general meetings required
- Redomiciliation permitted
- Electronic signature
- Annual return
- Audited accounts
- Audited accounts exemption
- Exchange controls
- Common law Legal basis
- 1 Minimum shareholders
- 1 Minimum directors
- USD 1 Minimum issued capital
- - Minimum paid up capital
- USDAny Capital currency
- Anywhere Location of annual general meeting
- 2017 AEOI
Corporate income tax - Cayman Islands does not levy corporate income tax. In addition, an Exempted company may apply for an undertaking from the Governor that no law enacted in Cayman imposing any tax to be levied on profits or income or gains or appreciations shall apply to the Exempted company. The undertaking will be for a maximum of 50 years and will also cover estate duty or inheritance tax.
No withholding tax is levied on dividend, interest and royalty payments to non-residents.
Other taxes - There is no personal income tax nor capital gains nor corporation tax nor value added tax. The only existing taxes in Cayman Islands are:
- Stamp duty on the lease of the property from 5 to 20% of the annual average rent.
- Stamp duty on the lease of a land, 5% of the value of the property if the term is more than 30 years, or 5% of the average annual rent, if less than 30 years.
- Tourist Accommodation Tax: 10% of the income obtained by renting tourists or USD 10 per day for each room occupied in timeshare properties
- Stamp duty on the transfer of a property of 7.50% on its value.
- Import duty tariffs between 22% and 27%.
- Offshore Income Tax Exemption
- Offshore capital gains tax exemption
- Offshore dividends tax exemption
- CFC Rules
- Thin Capitalisation Rules
- Patent Box
- Tax Incentives & Credits
- Property Tax
- Wealth tax
- Estate inheritance tax
- Transfer tax
- Capital duties
- 0% Offshore Income Tax Rate
- 0% Corporate Tax Rate
- 0% Capital Gains Tax Rate
- 0% Dividends Received
- 0% Dividends Withholding Tax Rate
- 0% Interests Withholding Tax Rate
- 0% Royalties Withholding Tax Rate
- 0 Losses carryback (years)
- 0 Losses carryforward (years)
- 0% Personal Income Tax Rate
- 0% VAT Rate
- 0 Tax Treaties
The Cayman Islands is a British overseas territory dependent on the United Kingdom and located northwest of Jamaica between the island of Cuba and the coast of Honduras in the waters of the Caribbean Sea. The Cayman Islands is a member of the CARICOM single market.
The 264-square-kilometer (102-square-mile) territory comprises three islands, Grand Cayman, Cayman Brac and Little Cayman, where about 69,000 people live, 55,000 of which live in its capital, George Town (Grand Cayman).
Its official currency is the Cayman Islands Dollar (KYD), pegged to the US dollar at a 1,227:1 ratio.
The Cayman Islands are a British overseas territory, designated by the UN Decolonization Committee as one of the last Non-Self-Governing Territories. The fifteen representatives who compose the Legislative Assembly are elected by the people every four years, they are in charge of managing the internal affairs. Of the elected members of the Legislative Assembly, five are elected to serve as ministers in a Cabinet headed by the Governor. The head of government is the Prime Minister.
The governor is appointed by the King/Queen of the United Kingdom on the advice of the British Government to represent the monarch.
The Cayman Islands has a solid economy, with one of the highest per capita income worldwide. Being also the one of the most expensive place to live, since most products are imported and are subject to high tariffs.
Its main sectors are luxury tourism for its pristine beaches, scuba diving and high-end gastronomy, and offshore financial and insurance services, with hundreds of licensed banks, which handle about $500 billion in assets.
Cayman Islands is one of the 5 largest financial centers in the world by deposits and the world’s largest financial center for investment funds, with the presence of the global largest financial institutions.
Main financial services available in the territory are private banking, hedge fund formation and investment, trust services, structured finance and securitisation, captive insurance, and international business company services.
Cayman Islands Exempted Company (Ltd) – US$3,400.00 (All included)
Cayman Islands Limited Liability Company (LLC) – US$4,000.00 (All included)
We pride ourselves in providing the best possible professional service which includes our honest hassle free “No Hidden Fee” policy. Your incorporation package includes:
- Registration and Government Fees
- Bound set of Constitutional Documents
- Certified Copies of Constitutional Documents for bank account opening
- Courier fees
Time to form: 2 weeks.
All our incorporation services include a yearly consulting session, a dedicated account manager and access to our global network of trusted business services, including introductions to accountants, financial, tax and legal advisors at no cost.
Bank Account Options
- Cayman Islands Bank Account (Remotely) – US$700.00
- Offshore Bank Account* (Remotely) – US$300.00
- Mauritius Bank Account (Remotely) – US$500.00
- Labuan (Malaysia) Bank Account (Remotely) – US$500.00
- Bahamas Bank Account (Remotely) – US$500.00
- Curaçao Bank Account (Remotely) – US$500.00
- Hong Kong Bank Account (In-person) – US$1,200.00
- Singapore Bank Account (In-person) – US$900.00
- Crypto-Friendly Bank Account (Remotely) – US$3,000.00
We include introductions to payment processors or merchant accounts with all of our incorporation services. Whether you just need standard credit card processing or specialized services for high risk processing, we are happy to help you with introductions that can empower your business.
*Offshore Bank Accounts: Belize, Puerto Rico, Nevis, Antigua, Saint Lucia. Other bank account options may be available depending on business profile and turnover.
Annual fees (Payable 1 January)
Exempted Company – US$2,600.00
Limited Liability Company (LLC) – US$3,000.00
- Registered office & registered agent fee
- Maintaining minute book and statutory records
- Annual Government fee
Click here to incorporate your Cayman Islands EXEMPTED COMPANY.