1. What is an exempted company in the Cayman Islands?

An exempted company in the Cayman Islands is a business entity designed for conducting activities outside the jurisdiction. It is the most common structure for international entrepreneurs due to its tax-neutral status, no requirement for annual general meetings, and limited disclosure obligations. Exempted companies are ideal for holding assets, managing investments, or acting as special-purpose vehicles.

2. How do I register a company in the Cayman Islands?

To register a company in the Cayman Islands, you must engage a licensed local service provider. The process involves selecting a company name, preparing the memorandum and articles of association, submitting due diligence documents, and filing with the Registrar of Companies. Most companies are incorporated within 3–5 business days.

3. What are the benefits of forming a Cayman Islands company?

Key benefits include tax neutrality (no corporate, income, or capital gains tax), investor privacy, political and economic stability, a common law legal system, and international credibility. These advantages make Cayman an ideal jurisdiction for global business operations, fund structuring, and wealth management.

4. How much does it cost to set up a company in the Cayman Islands?

Costs vary depending on the service provider and company type. Typically, formation costs range from USD 3,000 to USD 8,000, including government fees, registered office, and compliance support. Annual renewal fees also apply.

5. Do I need to visit the Cayman Islands to start a company?

No, physical presence is not required. Company formation can be completed remotely through a licensed Cayman Islands corporate services provider, who handles all documentation and regulatory filings on your behalf.

6. What are the ongoing compliance requirements for Cayman companies?

Companies must maintain a registered office, keep proper records, pay annual government fees, and file an annual return. Depending on the nature of the business, economic substance and beneficial ownership filings may also be required.

7. Is there corporate tax in the Cayman Islands?

No, the Cayman Islands does not impose corporate tax, income tax, capital gains tax, or withholding tax on companies. This tax-neutral status is one of the main reasons for its popularity among offshore jurisdictions.

8. What is the economic substance requirement in the Cayman Islands?

Under the Economic Substance Law, certain companies engaged in “relevant activities” (such as fund management, insurance, finance, and shipping) must have substantial presence and operations in the Cayman Islands. This includes having local employees, physical premises, and core income-generating activities conducted locally.

9. Can I open a bank account for a Cayman Islands company?

Yes, Cayman Islands companies can open bank accounts locally or in other jurisdictions. However, banks typically require extensive due diligence, including company documents, business plans, and identification of ultimate beneficial owners.

10. Are Cayman Islands companies anonymous?

While the Cayman Islands offers a high level of privacy, recent international regulations require beneficial ownership information to be maintained and accessible to local authorities. However, this information is not publicly disclosed.

11. How long does it take to incorporate a company in the Cayman Islands?

Standard incorporation takes 3 to 5 business days, but express services are available for an additional fee, allowing companies to be incorporated in as little as 1 day.

12. Can a foreigner own 100% of a Cayman Islands company?

Yes, foreigners can own 100% of a Cayman Islands company. There are no restrictions on foreign ownership, making it a flexible and accessible jurisdiction for international entrepreneurs and investors.

13. What documents are required to form a Cayman Islands company?

You will need a certified copy of your passport, proof of address, a completed client questionnaire, and a business description. The service provider will prepare the necessary incorporation documents, including the memorandum and articles of association.

14. Do Cayman Islands companies need a local director or shareholder?

No, there is no requirement for a local director or shareholder. Cayman companies can be entirely foreign-owned and managed, though a registered office in the Cayman Islands is mandatory.

15. Is the Cayman Islands a good jurisdiction for offshore startups and holding companies?

Yes, the Cayman Islands is widely regarded as one of the best jurisdictions for offshore startups and holding companies. Its efficient legal system, flexible structures, and favorable tax environment make it a top choice for technology ventures, investment vehicles, and global business operations.