There is the requirement of a registered agent and registered office in setting up a Cayman Islands company. Due to the states stable government and economy, any foreign investor would greatly profit from many business opportunities. Of course, the many pros above makes it hard to beat, but we cant ignore the following negatives: Despite the tax breaks here, high costs of living might just revoke this benefit entirely. Act as a general partner of a Cayman Islands exempted limited partnership. Did Columbus really "discover" Cayman? The predominant language on the islands is English, which makes it the ideal place to head to from the US or UK. Offshore Protection specializes in custom offshore strategies to reduce your taxes, diversify your wealth, and protect your assets so you can pursue your freedom. It is worthwhile to consider the transportation links before setting up a Cayman Islands company. He has been recognised in the recent (and previous) editions of Chambers (HNW) and Legal 500 directories. Contact Offshore Protection for specific advice regarding your situation. Should you wish to enlist the help of a third party, such as TMF Group, to assist with incorporating your company, Whats more, work/life balance is actually encouraged as part of everyday life in the Caymans. The name of your company must be easily comprehensible on the outside of your office. Corporations are best for big enterprises; they dont fit well with start-ups. The Companies Law (Revised) (Companies Law) distinguishes between local ordinary companies, which are generally required to be majority owned by Caymanians, and exempted companies, which are not. Offshore tax havens are designed to attract offshore investors, businesses, and wealthy individuals to set up offshore financial structures. In most of Europe, authorities have been trying to introduce legislation that will curtail tax evasion and money laundering by entities located in offshore tax centers. In fact, not only do they not charge corporate tax on businesses, they also dont charge citizens: This is because they rely on tourism and work permits to replace the usual taxation system. The typical key features of offshore tax havens are: The best way to access the benefits of an offshore tax haven is to register a corporate entity or other type of financial vehicle within the jurisdiction. However, this might discourage one from setting up a Cayman Islands company due to the additional information one would have to submit. There is clearly a wealth of benefits which come with the intelligent use of offshore tax havens. Your local service provider will have their own fee list. All Rights Reserved |, This site uses cookies to help us improve our services and to enhance your experience of our site. There are also numerous other ways to take advantage of tax havens, from simply owning an offshore bank account in the jurisdiction, to actually taking the steps to become a fully registered permanent tax resident of a jurisdiction which has low personal income taxes and/or a territorial tax system. However, these set of islets follow international tax guidelines, contrary to the usual stereotype. Draft an affidavit confirming that your company will operate mainly outside the Cayman Islands. Additionally, we will also discuss the application process that you will encounter. This makes them a pretty solid place to live and work. Here are some things to consider before diving right in to Cayman Islands company setup. The following documents are to be submitted to the Registrar upon incorporation: If using the standard service, the Registrar takes three to five business days to register an exempted company. Capital: There is no obligation to deposit authorized capital in a bank or in escrow when incorporating a company in Cayman Islands. For instance, ELDC has a limited duration and non-transferability of interest qualities. Here are the steps: Every company must register a physical office with the Registrar in Cayman Islands for easier communication and accessibility. There are plenty of benefits inCayman Islands company setup. The key features of a Cayman Foundation which have proven particularly popular are the following: Cayman Foundations are being put to a wide variety of uses, including: In the private wealth context, a Cayman Foundation can serve a similar function to a trust with assets being held for the benefit of beneficiaries on terms specified in the Foundations governing documents. Placing assets into offshore corporations and overseas legal structures can provide protection from future liabilities. An ELP cannot trade in the Cayman Islands. Last name* must have at least 0 and no more than 255 characters. *Note for U.S. citizens: US citizens are limited in their tax reduction possibilities due to FATCA and CFC laws. Whereas other offshore jurisdictions have sought to establish an entirely new set of rules for their respective foundation offerings, the approach in Cayman was to build off the existing Companies Act framework. Of course, the many Our ESG activity is grounded in the United Nations Sustainable Development Goals. The executive committee at TMF Group is made up of ten senior leaders in their fields. However, you might need to be aware of the corporate and personal tax obligations of the country of your residence. In this section we explain how to set up a business in the Cayman Islands including deciphering all the legal formalities. The company may change its registered office to another address in the Cayman Islands by directors resolutions. Why do companies incorporate in Cayman Islands? With respect to common law, as a British Overseas Territory, Cayman treats judicial decisions made in the UK and other Commonwealth jurisdictions as persuasive in nature. Stable Legal System. As such, the public may not view The Register of Directors and Officers or the Register of Shareholders. The flexible nature of Cayman Foundations allows governing rules and constitutional documents to be drafted in a highly bespoke manner with the organisations objectives at the forefront. A schedule of fees can be found on the Registrys website. With a holding company in the Cayman Islands, businesses can maximize tax efficiencies, create IPOs, and merge with other companies in the Cayman Islands or with authorized foreign entities, and more. Cayman corporate structures are therefore a favored choice for wealth management and effective tax structuring. Here we cover everything you need to know about cars, trucks, bikes and how to legally drive them and ensure they are road worthy. Ritch & Conollys regulated affiliate, Foreshore Corporate Services Ltd, provides a full range of corporate management services. Hong Kong. Registering and incorporating a company in the Cayman Islands is a straightforward process and Cayman's many corporate services companies and law firms can help you. Exempted companies can be incorporated within 24 hours of the relevant documentation being filed and provide great flexibility to investors. We have the expertise to provide full administrative support for your prospective or existing operations in this market, from entity incorporation, to local directorship services, HR and payroll and (fund) accounting and tax services. Like the ELDC, there are attributes that make it unique from others. The following locations are well-known offshore locations: Switzerland is not offshore but is one of the most convenient jurisdictions for offshore corporation formation. This also means that the process of incorporating or setting up any kind of financial vehicle is made extremely easy, simple, and fast in most tax havens. The Cayman Islands Government has been clear that it will not consider the introduction of a public register of beneficial ownership unless and until that becomes the accepted and implemented international standard. investment funds or companies through which investment funds operate or invest, whether directly or indirectly. This is usually a fairly simple process, as tax havens are specifically designed to attract offshore investments and company formations. Opening an offshore company can increase privacy and asset protection, but you can not eliminate your taxes without giving up your citizenship. The legislators foresight for Foundations to take the form of a Cayman company has allowed them to seamlessly fit into Caymans legal regime, offering up an attractive and flexible structuring tool for a diverse range of uses with an increased application for certain FinTech structures including DAOs and pioneering virtual asset businesses. Businesses who are interested in accessing new markets for trade and investment. AbsolutelyFree. We cant take a balanced look at setting up a business in the Caymans without exploring the cons. Due to the classifications of companies operating in tax haven jurisdiction, it might raise skepticism about these businesses. Incorporating in the Cayman Islands can also offer significant asset protection benefits. 2021 saw 281 per cent year-on-year growth in the registration of Foundation Companies. The incorporation and registration of a businesses is a seamless process conducted by a licensed local corporate service provider. They have friendly tax laws which enable individuals and/or companies to minimize or eliminate their tax liability. The financial structures available in these countries can be beneficial to both businesses and individuals, and can be responsibly used to help reduce heavy tax burdens, increase financial privacy, and add a much needed layer of protection to your assets. Additional risks for offshore corporations are similar to those for onshore corporations. This is in place to prevent the event of businesses being used for criminal purposes. Copyright 2023 Cayman Islands General Registry. Dividends received and capital gains realized are also exempt from Dutch corporate income tax. the date the person became, or ceased to be, a beneficial owner of the company. The annual operating requirements are also minimal in most jurisdictions, with few reporting requirements and no exchange controls. However, you need to deliver to the Registrar a certified copy of the resolution from the directors authorizing the move. Appointments are preferred and they can be made by phone or by emailing: cigenreg@gov.ky. WebAs a result, incorporating a company in Cayman Islands is very safe, yet feasible for every entrepreneur. Although setting up a Cayman Islands company has some disadvantages, the developed legal system renders the Cayman Islands a stable jurisdiction that still has much to offer. They provide advantageous financial environments and in turn benefit from the economic inflow that offshore investors bring. The Registrar will list your business on the Registry of Companies and issue the companys Certificate of Incorporation. On top of this, the Cayman Islands boasts a whole host of benefits, including tax relief and a beautiful island setting. Thinking of setting up your company in the Cayman Islands? . Walkers Professional Services offers a broad range of efficient and reliable corporate, fiduciary, regulatory and administration services. Furthermore, the opening of a bank account takes around 4 weeks which is considerably longer. If a legal opponent is pursuing legal action against you, it typically involves an asset search. Both are leading Most of the top tax havens are island nations like the British Virgin Islands, Samoa, and Malta. The fees for incorporation vary depending on the type of company and share capital. The certificate of incorporation or other instrument constituting or defining the constitution of the foreign company. The incorporation and registration of a business in Cayman is a seamless process that is conducted by a licensed service provider. Offshore Asset Protection Trusts are another type of entity which provide the utmost in confidentiality, especially when situated in offshore tax havens like the Cook Islands or Nevis. Expatica helps make your expat journey the experience you've always wanted. Segregated portfolio companies (a single legal entity whose assets and liabilities can be allocated to different segregated portfolios within the company, so of particular use in insurance, mutual fund and securitisation structures). 2022 looks set to continue this trend, with more registrations in the first two months of the year than there had been for the entire calendar years of 2019 and 2020. The effect of the transfer is to continue the company to the Cayman Islands with its assets and liabilities; it does not create a new company. 4. The statutory obligations in the running of the offshore entity have also been simplified. The value of the First name* field is not valid. Act as a branch operation in accordance with the insurance, bank and trust laws of Cayman. Please note, the UK Sanctions and Anti-Money Laundering Act (2018) requires the UK Government to draft an order by the end of 2020 requiring British Overseas Territories to create a publicly accessible beneficial ownership register. Completely Confidential. While incorporated in Cayman, exempted companies are not permitted to carry on a trade or business in Cayman, except in furtherance of their business activities Retrospective legislation can be used to declare a tax-evasion scheme that was legal some years ago as no longer legal now. The subscriber(s) to the Memorandum of Association appoint the first director(s). WebTypes of Companies Company Statistics Registration & Annual Fees Advantages of Registration Incorporation Companies Struck Off Resident Company An ordinary resident company carries on business within the Cayman Islands. One disadvantage would be that you may be exposed to taxation through the remittance and distribution of the income and assets. The Cayman Islands is revered for its general stability across the board. An overseas company that establishes a place of business or commences carrying on business within Cayman, must register with the Registrar of Companies (Registrar) as a foreign company under Part IX of the Companies Law. Campbells is a full service offshore law firm with offices in the Cayman Islands as well as BVI and Hong Kong. The Netherlands also participates in the exemption, has a 0% withholding tax on interest and royalty distributions, and has a tax ruling system in conformity with OECD standards. Disclaimer:Offshore Protection strives tokeep information on this websiteupdated, however, laws and circumstances are subject to change. This is likely to result in greater due diligence requirements with a lower probability of being accepted for opening a corporate account. However, there are exceptions in the event of terrorism or criminal atrocities requiring investigation. Whether these notions are true or not is a different issue altogether, but the negative publicity that these tax havens have attracted has certainly resulted in some of the following disadvantages: Due to some of the growing negative sentiments towards tax havens, businesses which make use of them may be subjected to additional scrutiny from their local regulatory authorities in the form of tax audits and other investigative measures. An authoritative overview of the complexity of establishing and operating businesses around the world. All Rights Reserved. The most common corporate vehicles to use are either an offshore company or an offshore trust. However, Cayman Islands has certain company types which may not fit your specifications. Effective administration and control are where the day-to-day operations of the entity occur. Its mainly limited to buses and expensive taxis, which means that having your own car is essential if you move to the Cayman Islands. Discover the pros and cons of setting up an offshore company, including privacy and reduced tax liability, and learn how to register, establish, or incorporate your business outside of your country of residence. International full-service law firm specialising in investment funds - both hedge funds and private equity funds - and a range of services. These are the following: Here are the general qualities of an ordinary non-resident company in the Cayman Islands: A Segregated Portfolio Company is a sole legal entity. Without a customised legal strategy, you put yourself at risk. In fact, there are no Cayman Islands laws enacting any imposition of tax levied on profit, income, gain, or appreciation that applies to the partnership or to any partners. There are many reasons why foreign investors choose the Cayman Islands for incorporation. A registered agent is a third party who is assigned to handle the management of the business located in the Cayman Islands. Tetra Consultants is the consulting firm that works as your advisor and trusted partner in your business expansion. This article will explore the features and uses of Cayman Foundation Companies. Local legislation requires all persons who are beneficial owners for businesses registered and operating in the Cayman Islands to file their beneficial ownership information with the Cayman Islands Government. We tell our clients what they need to know, instead of what they want to hear. 2010-2023 Tetra Global Consultants. The filing of beneficial ownership information can be done either through local licensed service providers or directly with Government, depending on the type of company being used. This does not apply if such control is solely in the capacity of a manager, director, or adviser. Relevant entities are required to satisfy the economic substance test in respect to every relevant activity. Special economic zone companies (available to those operating in certain sectors (for example, commodities)), which can take advantage of expedited incorporation and immigration procedures. The process to Other than corporations located in traditional offshore tax havens, this list would include companies located in Luxembourg, Liechtenstein, and Uruguay. Donate to the UN Refugee Agencytoday. An Ordinary Non-Resident Company can convert to an Exempted Company by simply applying. Robert also has significant experience in trust and estate litigation, and other cross-border private client disputes. Forming and incorporating a company in Cayman Islands allows for flexibility options. Carry out securities investment business in the Cayman Islands. Any corporation or wealthy individual who desires to legally reduce their tax burden and access the many other financial advantages of offshore tax havens can greatly benefit by using them. And Now . Incorporating in the Cayman Islands: exempted companies. Local ordinary companies (for those wishing to undertake business in Cayman). There is a high cost of living in the Cayman Islands. The value of the Last name* field is not valid. Offshore law firm providing a comprehensive range of legal services to clients locally and around the globe. In Spain, withholding tax of 21% is payable on interest and dividend payments, whether domestic or to non-treaty countries. A well-established boutique law firm that represents and provides advice to both offshore and local clients. In fact, it may be surprising for many to learn that some of the most popular tax havens in the world are actually highly reputable developed nations in Europe, such as Luxembourg, Switzerland, the Netherlands, and Ireland. What more could you ask for? The Registrar must be notified of any appointments, resignations and/or removals of directors and officers within 30 days from the date of change. Not to mention, they have a very stable and developed legal system, and an advanced banking system. The only use of setting up a Cayman Islands company would be that it can be used as a holding company for international shares held by a single owner. The GCCP is a new government initiative which allows people who are employed outside of the Islands to relocate and work remotely in the Cayman Islands for up to 24 months, which makes it easier for Cayman Islands company setup. DAOs operate differently from many of todays traditional legal entities and business structures, the objective being to achieve a more democratic form of governance whereby decisions are made by a defined community (for example token-holders of a particular cryptocurrency). The subsequent appointment and/or removal of directors are in accordance with the provisions of the Articles of Association. You can open bank account for your company in European, Hong Kong, Singapore or other jurisdictions supported offshore bank accounts! LinkedIn, Editorial inquiries should please contact us at However, where dividends are paid to a company that has share capital that has been held during the prior year equal to or above 5% withholding tax does not apply.