BusinessCayman Islands6 Things to Know Before You Register Business in Cayman Islands

February 21, 2022by Tetra Consultants4
https://www.tetraconsultants.com/wp-content/uploads/2022/01/pexels-kindel-media-7651980.jpg

It has become increasingly popular to register business in Cayman Islands due to the characteristics of the Cayman Islands tax haven and its business-friendly environment. Offshore businesses are exempted from corporate or income taxes but are instead required to pay licensing fees. In this article, our team at Tetra Consultants has highlighted 6 things to know before you register company in Cayman Islands.
things-to-know-before-register-business-incayman-islands

1. Economic and Political Outlook:

Situated in the Western Caribbean encompassing three islands, it is relatively accessible from the United States, United Kingdom and Canada. Hence, it holds an attractive market for exports. 

The stable economic and political environment attracts investors in setting up a Cayman Islands Company. It is advantageous to start a business in the Cayman Islands due to its up-to-date infrastructure, flexible exchange controls, and world-class communication systems. Furthermore, with the sound legal system, the government is very responsive in supporting the setting up of businesses, creating a business-friendly environment in the Cayman Islands. 

One advantage of starting a business in the Cayman Islands would be the availability of a highly educated workforce. With English as the official language, communication would not be an issue when starting a business in the Cayman Islands. 

Setting up a business may not be easy; however, it may be easier in the Cayman islands compared to other countries due to its supportive government and pro-business environment.

2. Business-friendly Environment:

The Cayman Islands is making a consistent effort to develop a business-friendly environment. In June 2016, the government tightened the copyright laws. In 2017, in order to enhance the country’s business products, landmark legislation for the formation and registration of foundation companies was enacted. 

The laws of the Cayman Islands provide protection for the privacy of the investors. They are not obliged to disclose the information of directors, officers and shareholders. They are also not required to submit financial records. This allows for maximum confidentiality, which acts as protection to individual assets and financial security.

3. Tax haven:

The Cayman Islands is known to be a tax haven with no direct taxations. Business owners are exempted from corporate taxes, personal income taxes, property taxes, capital gains taxes, no payroll taxes and no withholding taxes. This allows the Cayman Islands to remain an attractive place to set up businesses. 

Instead of direct taxation like other countries, the Cayman Islands earn revenue through fees of stay-over tourism and work permits, financial transactions, and import duties. For example, duty taxes at a rate of 22% to 27% are levied on most imported goods to the Cayman Islands. Whilst items such as baby formula are exempted from duty taxes, other goods such as automobiles are taxed at a higher rate depending on the value of the automobiles.

4. Types of Business Entities:

There are a few types of business entities in the Cayman Islands. The main Cayman Islands company types are Exempted Company, Limited Liability Company (LLC), and Exempted Limited Partnership. 

Exempted Company

  • Exempted Company requires a minimum of one shareholder, one director of any nationality.
  • There is no minimum capitalization.
  • The company must have a registered office in the Cayman Islands.
  • There is no minimum paid-up capital.
  • The filing of financial statements or the appointment of an auditor is not required.
  • A registry for public inspections and annual general meetings is not required.
  • Business is not allowed to be carried out in the jurisdiction.

Limited Liability Company (LLC)

  • A hybrid between an exempted company and an exempted limited partnership.
  • LLC is a separate legal entity where the shareholder and directors are not liable for debts, losses or legal action taken against the business.
  • The filing of financial statements or the appointment of an auditor is not required.
  • The filing of annual returns or public disclosure of directors, shareholders, charges, loans or agreements is also not required.
  • Business is not allowed to be carried out in the jurisdiction

Exempted limited partnership (ELP)

  • ELP requires a minimum of one general partner of a resident of the Cayman Islands and one limited partner of any nationality.
  • General partners are given the entitlement to manage the affairs of the partnership and are faced with unlimited liability. Whereas limited partners are not allowed to manage and are only faced with limited liability which is the amount of capital contributed.
  • According to the partnership law, all ELPs are required to have a registered office in the Cayman Islands.
  • Business is not allowed to be carried out in the jurisdiction

 

5. Incorporation Process:

The incorporation of a company in the Cayman Islands is straightforward and easily accessible online. It is estimated to take 1-4 working days depending on the processing time.

6. Business Registration Process in the Cayman Islands:

If you have decided to set up a business in the Cayman Islands, you may proceed to register business in Cayman Islands. The process is as follows:

Step 1: Planning of your business idea

Step 2: Choosing a suitable corporate entity

Step 3: Reserving of the company name and registration through Cayman Islands General Registry

Step 4: Corporate bank account opening

Step 5: Obtaining a trade or business licenses

Step 6: Staying compliant and annual license fee payment

Conclusion:

The process to register business in Cayman Islands may seem intimidating. With Tetra Consultants by your side, the registration process of your business in Canada will be smooth and hassle-free. Our comprehensive service package includes planning and strategizing with our clients to select a suitable business entity, completing the registration process, obtaining required licenses, opening a corporate bank account, and ensuring your compliance with the government regulations. 

Contact us to find out more about how to register business in Cayman Islands and our dedicated and experienced team will revert within the next 24 hours.

Tetra Consultants

Tetra Consultants is the consulting firm that works as your advisor and trusted partner in your business expansion. We tell our clients what they need to know, instead of what they want to hear. Most importantly, we are known for being a one-stop solution for our valued clients. Contact us now at enquiry@tetraconsultants.com for a non-obligatory free consultation. Our team of experts will be in touch with you within the next 24 hours.

4 comments

  • Hemant singh

    September 24, 2022 at 6:08 pm

    How to set up bussiness in cayman Island and minimise cost of living ??

    Reply

    • Tetra Consultants

      September 25, 2022 at 6:00 pm

      Thank you for reaching out. One of our consultants has contacted you to discuss the above.

      Reply

  • justin

    November 17, 2022 at 6:50 am

    Hi

    Is a director of a LLC in the Cayman island able to take loans from the company and if yes are they taxed in the Cayman Island?

    Many thanks

    Justin Collins
    http://www.ambo-pipeline.com

    Reply

    • Tetra Consultants

      November 21, 2022 at 12:13 pm

      Thank you for reaching out. One of our consultants has contacted you to discuss the above.

      Reply

Leave a Reply

Your email address will not be published. Required fields are marked *

19 − 14 =

Follow us on

Address

22 Sin Ming Lane #06-76 Midview City, Singapore 573969

©2010-2022 Tetra Global Consultants. All rights reserved.

  • Contact Us

    Contact Form

  • WhatsApp