Limited Liability Company
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 Limited Liability Companies Law 2016, came into force on July 8th, 2016, creating a new hybrid entity with separate legal personality and limited liability of its members but with greater structure flexibility than a corporation and taxed as a partnership.
An LLC requires minimal corporate formation requirements and a fast registration procedure. There may be incorporated as a single-member LLCs, and there are no company structure requirements for its management, nor are there provisions for company meetings, directors, secretary, or capital. Its operating agreement may be arranged by its members according to their needs.
Members pay personal income taxes in their country of residence on LLC profits proportionally to their share of participation in the LLC company, whether distributed or not.
It is important to note that certain countries do not recognize the pass-through status of an LLC, if the LLC is deemed to be tax resident in one of such countries, it may be subject to corporate income tax.
LLC’s tax transparency allows residents of certain jurisdiction to not be penalized under controlled foreign company rules.
Limited Liability companies may request to the government a Certificate of 50 years tax exemption against any future Cayman Islands taxation, provided that they do business outside the jurisdiction.
However, tax-exempt LLCs can 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.
In Cayman Islands, there are no direct taxes. No corporation tax, income tax, capital gains tax, inheritance tax, gift tax, nor wealth tax. Certain documents may 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.
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 confirming that no business has been conducted within the jurisdiction.
LLCs 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.
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.
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.
The Cayman Islands LLC is an excellent entity for movable and immovable assets holding, asset protection, investment funds, joint venture companies, private equity transactions, securitisations and other corporate transactions and international structures.
Furthermore, its flexible nature makes the LLC also suitable for startups, international trade and e-commerce.
A Cayman Islands LLC may be required to obtain a license or to register with the Cayman Islands Monetary Authority to carry out certain activities such as banking business, trust business, company management, insurance business, mutual fund administration, business of a mutual fund and securities investment business.
Country code - KY
Legal basis – Common law
Company law - The Limited Liability Companies Law, 2016
Company form – Limited Liability Company (LLC).
Liability - The liability of the members of the company is limited to the amount of their capital contributions.
Capital – There are no minimum capital requirements as well as no maximum limit.
Members – At least one member, who may be an individual or a legal entity of any nationality. There are no limitations on the number of members and tiers and levels of members may be dictated by the LLC’s operating agreement. Details of members, managers or beneficial owners are not accessible to the public.
Manager – At least one manager, who may be natural or legal person of any nationality. An LLC may be managed either by its owners or by third parties. Details of managers are not publicly disclosed.
Registered Address – An LLC must have a registered office situated in the Cayman Islands for the service of process and to which all notices and communications may be addressed.
Electronic Signature – Permitted.
Re-domiciliation – A foreign entity can easily be re-domiciled as a Cayman Islands LLC.
Compliance – Cayman Islands LLCs are required to prepare and maintain accounting records, to reflect the financial position of the company. Account records should be kept for 5 years from the date of its preparation and may be kept anywhere.
An LLC must maintain a register of members containing the name and address of each person who is a member of the LLC, the date on which they became a member and the date on which they ceased to be a member.
The register of members need not be kept at the registered office of the LLC, but if it is kept elsewhere, the registered office should maintain a record of the address at which it is kept. The register of members is not open to public inspection.
The LLC Agreement is not required to be filed or registered with the Registrar of Limited Liability Companies
An LLC 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 LLC or to any member in respect of the LLC. The undertaking will be for a maximum of 50 years and will also cover estate duty or inheritance tax.
An annual return and an annual fee must be filed and paid to the Registrar on or before 31 January in every year.
An LLC that does not conduct any licensed activity is not required to file financial statements, nor annual audit is required.
- Members not disclosed
- Managers not disclosed
- Corporate members permitted
- Corporate manager permitted
- Local manager required
- Registered office or agent required
- Annual meeting required
- Redomiciliation permitted
- Electronic signature
- Annual return
- Audited accounts
- Audited accounts exemption
- Exchange controls
- Common law Legal basis
- 1 Minimum members
- USD 1 Minimum registered capital
- - Minimum paid up capital
- USDAny Capital currency
- 100% Foreign-ownership allowed
- 2017 AEOI
Corporate income tax - Cayman Islands does not levy corporate income tax. In addition, an LLC is a tax transparent entity, which means that any profits are passed through to the members to be reported as personal income.
In addition, an LLC 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 LLC or to any member in respect of the LLC. The undertaking will be for a maximum of 50 years and will also cover estate duty or inheritance tax.
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%.
- Tax transparent entity
- 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% 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
- Preparation and filing of annual return
- Maintaining minute book and statutory records
- Annual Government fee
Click here to incorporate your Cayman Islands LLC.