About Cayman Islands
The Cayman Islands are the leading international center of the Caribbean. This is a British colony that has managed to build a profitable economic basis for building a large sector of financial and legal services. Here, in the Caymans, more than 100 thousand companies are registered, of which 500 are banks.
Recently, the jurisdiction has also become attractive for the registration of crypto business, because in 2020 the relevant Law on virtual assets was adopted. Although crypto activities in the Caymans are licensed, there are no economic presence requirements for intermediaries, traders or issuers of crypto assets.
Types of companies
The most popular legal form for offshore operations is the exempt company. The company is created to conduct business outside the country, and therefore is completely exempt from local taxes.
To do this, the Memorandum and Articles of Association must be submitted to the State Registry of Companies, along with a statement by the directors under oath that the economic activities of the company being created will be carried out outside the Cayman Islands. The names and addresses of the proposed first directors must also be reported to the Register.
COMPANY REGISTRATION IN THE CAYMAN ISLANDS: REQUIREMENTS
EXEMPT COMPANY:
- Authorized fund - there is no requirement for the minimum share capital. It is recommended that the authorized capital of the company does not exceed 50 000 USD, in order to pay the minimum registration and annual fees.
- Director - minimum one can be both an individual and a legal entity, resident or non-resident of Cayman. It is possible to use a nominee service.
- Shareholder - at least one can be both an individual and a legal entity. It is not necessary to hold shareholder meetings in the Cayman Islands.
- Secretary - there is no requirement for availability, however businesses usually have a secretary who can be a natural or legal person.
- Reporting - since there is no requirement for the results of the audit by the privileged companies, it is only necessary to keep records of their financial activities, which should reflect the financial position of the company. A minimum annual return is also submitted, confirming that the company did not conduct business in the territory.
- Public Information - in 2020, company registries became public. In addition to basic information on firms, they only store information about the original founders (shareholders and participants).
- Confidential Information - Cayman Islands companies are required to maintain a beneficial ownership register, but the details of the beneficial owners are kept confidential and not disclosed to the public.
- Legal address - must be located in the Cayman Islands.
- Substances - companies operating in the following activities: fund management, banking, insurance, finance and leasing, business centers, headquarters business, intellectual property business, shipping and holding companies must comply with the economic presence criteria. Notwithstanding this, all Cayman Islands companies are required to notify each year by March 31 whether they fall under the above activity and substance or not.
TAXATION
One of the main advantages of an offshore company in the Caymans is the complete absence of taxation. Such offshore companies are not subject to income tax, capital gains tax, real estate tax, inheritance, or gift tax.
Privileged companies are granted a tax exemption certificate for a period of up to 20 years, with a possible extension up to 30 years. Thus, the Cayman Islands and their taxes are the best choices for registering a business.
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Currency control
There is no сurrency control.
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DUAL TAXATION TREATIES
The Cayman Islands have entered into only one Double Taxation Treaty - with the UK. At the same time, the jurisdiction has signed more than 20 Tax Information Exchange Agreements.
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FEATURES
Cayman Island as an offshore zone (offshore) is recognized by Ukraine, and the country is often included in the blacklists of the European Union. Another feature of this jurisdiction is the existence of agreements on mutual legal assistance (in particular with the United States; negotiations are underway with the countries of northern Europe), which means that the Caymans will help law enforcement agencies and governments of other states by providing information if a Cayman privileged company has been caught in a crime.
Nevertheless, for those in respect of whom such a development of events is unlikely, the presence of these agreements, on the contrary, can play a positive role, because this increases the international prestige of the jurisdiction, and as a result the prestige of the company that is registered there.
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If you want to establish and to register a company in the Cayman Islands, Campio Group specialists’ will provide you with all-round assistance in this matter, please contact us:
+38 (098) 737-88-88
We will help you to buy an offshore company in the Cayman Islands or in any other jurisdiction on the most favorable terms. The cost of registering a company in the Cayman Islands is formed for each specific business, check the final price of the finished firm with our lawyers depending on your individual needs.
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