Incorporating Your Start-Up in the Cayman Islands?
The Cayman Islands have always been a focal point for investors to incorporate a business due to its stable economy and flexible tax structure. Besides, the Cayman Islands does not impose income taxes on corporations.
Another benefit of Cayman Company Incorporation is asset protection and privacy. Only a few documents are required to be submitted to the government. This results in disclosing less information to the government. The company owner’s identity can be kept confidential and out of the public domain.
According to a survey conducted by Cayman Islands General Registry, there were more than 100,000 registered corporations in the Cayman Islands which are twice the size of the Cayman’s population. They were Exempted Companies with limited liability, and most businesses were operating outside of Cayman.
Are you planning to incorporate your company in Cayman? If yes, read this write-up to get extensive information on Cayman Incorporation Process.
Cayman Pre-incorporation Process
Make a Decision: You need to decide between starting an exempted company, corporate structure, or non-resident corporation. Also, check the license requirements for the company.
Create a Company Constitution: Ensure the company constitution you draft meets your company's requirements and governance needs.
Choose a Name: You can choose three names to apply for the Cayman Islands company registry. Your corporation name cannot be the same as other companies, and you can only do that if you have a license for it. Ensure that you do not use words like insurance, bank, and chamber of commerce.
Share Allotment: You’ll need to confirm the identity of the shareholders, the number and value of the shares, and the currency of the share capital. If you have share capital lower than US$50,000, this will minimise the government fees to be paid.
Planning: This process requires tax implications, document requirements, and obtaining necessary approvals.
Director Selection: You’re required to appoint one director. The director requires to sign a form complying with the act of becoming a director of the company.
Cayman Incorporation Process
Submission of Documents: Once all the required documents are in order, you can file the application for business registration with the Cayman Islands corporate registry.
Approval Phase: Generally, a company can be incorporated within four days of processing the documents.
Open a Bank Account: Once you have arranged the corporate documents, open a bank account in the islands or internationally.
Go for Additional Registrations: The Cayman’s Cabinet office takes approximately three weeks to declare the tax exemption certificate. You may apply for this certificate, along with opening a bank account.
Benefits of Incorporating your Business in Cayman
Unlike other jurisdictions, you don’t have to submit documents to the government every year or six months. This means less auditing, quick results.
There is zero direct taxation for at least 30 years from the course the business is incorporated.
You can run your business from anywhere, no need to operate locally.
Seamless incorporation process for start-ups with zero capital investment.
If you have the documentation in order, you can start your business in just one day.
Limitations to Incorporating your Business In Cayman
Some of the restrictions of company formation in the Cayman Islands include:
The companies must have a registered agent and office in the Cayman Islands. These can be established through third-party service providers.
As Cayman is considered a tax haven, companies formed here are viewed suspiciously under some circumstances.
Professional fees in the Cayman Islands are relatively higher in comparison to other countries.
To understand more about the distinct kinds of companies, their advantages, and how to go about incorporating your corporation in Cayman, you need the assistance of an experienced professional. Hence, choose your incorporation firm wisely!