Many people from many countries have found the advantages of basing
their business operations in the Cayman Islands - a fact shown by
the approximately 40,000 companies listed on the Cayman Registry
of Companies in 1998.
This flow of interest and investment, starting in the 1960s, has
played an integral part in the development of the Cayman Islands
as an offshore centre highly ranked in the international business
community. The growth continues at a steady pace, with over 4,000
new companies registered in a typical year.
Company Registration: Banks, Trusts, Funds,
Exempted, Ordinary, Captive Insurance & Partnerships
The cornerstone of Cayman's financial industry, company registration,
continues to experience steady growth with over 8,000 companies
registered in a typical year. The Company Registry is responsible
for the licensing of corporations under the Companies Law (1998).
All corporations required to be licensed under any law - Banks and
Trust Companies Law (2001 Revision), the Insurance Law (2001 Revision),
the Mutual Funds Law (2001 Revision), and the Companies Management
Law (2001 Revision) - must also be registered with the Registry
of Companies. A company wishing to trade within the Cayman Islands,
e.g., in retail trading, real estate, hotel operation, restaurants,
maintenance services or local shipping, must obtain a licence under
the Local Companies (Control) Law, and, if less than 60 percent
of the equity is Caymanian-owned, the Trade and Business Licensing
Board will have to be convinced of the need for the company's services.
ADVANTAGES & BENEFITS OF A CAYMAN COMPANY In
addition to the speed of processing, other advantages of registering
a company in the Cayman Islands include the following:
- Complete absence of direct taxation - no corporation, capital
gains, payroll, property or withholding taxes - and this can be
backed by a 30-year Government guarantee.
- Anonymity - there are well-established mechanisms for cooperation
with law enforcement agencies, both locally and overseas, to assure
the highest standards of probity throughout the Islands' financial
industry. Within this framework, protection of the legitimate
interests of clients is safeguarded. Except where assistance to
law enforcement agencies is mandated or authorized, disclosure
of information by government officials, professional agents, attorneys
and accountants and their staffs is forbidden by law under severe
penalties.
- Minimal reporting requirements.
- Ready availability of investment, legal and other advice and
good management services at prices competitive with those in other
offshore centres.
- Ability to form a company with only one shareholder, with no
minimum capitalization requirements.
The Registrar is allowed to release only the name and type of
company, the date of registration, and the address of its registered
office. This assures a rigorously upheld standard of privacy for
companies transacting a wide range of legitimate business. This
level of privacy is subject only to specified legal channels in
the context of illicit activities. The range of purposes includes
investment, sales processing, trading, shipping operations, stock
dealing, real estate holding, the ownership and licensing of patents,
and international financing.
A prospective promoter of a Cayman Islands company will be well
advised to obtain sound professional advice so that the way it is
structured does not adversely affect his tax status in his home
jurisdiction.
He is likely to find that to take full advantage of the benefits
of a Cayman operation the business decisions should be seen to be
taken in the Islands. To allow this to happen without the owner's
continual residence here it is convenient to make arrangements with
one of the company management firms, law and accountancy practices
or trust companies which have much experience of this type of work.
HOW TO INCORPORATE The most convenient way to incorporate
and register a company in the Cayman Islands is to engage one of
the professional firms as mentioned above. They are well versed
in the procedures, and they can also provide such services as the
registered office, nominee shareholders, directors and other officers,
and undertake the management of the company on the instructions
of the beneficial owner(s).
Here are some Cayman companies which offer company management
and incorporation services:
- Bodden Corporate Services Ltd.
COMPANY REGISTRATION AND ANNUAL FEES
Fees currently payable to the Registrar of Companies are given
below (all figures in Cayman Islands dollars [CI$1=US$1.22]).
Resident (ordinary) Companies
Upon registration and annually thereafter, there is a fee of $150
for companies with capital of $42,000 or less; companies with capital
in excess of $42,000 pay $350.
Non-resident Companies
Upon filing Memorandum and Articles of Association and on delivery
of the annual return each January thereafter, companies with capital
of $42,000 or less pay $400; companies with capital in excess of
$42,000 pay $565.
Exempted Companies
Upon registration and delivery of the annual return each January
thereafter, there is a fee of $470 for companies with capital of
$42,000 or less; companies with capital in excess of $42,000 but
not exceeding $820,000 pay $660; companies with capital in excess
of 820,000 but not exceeding $1.64 million pay $1,384 and companies
in excess of $1.64 million pay $1,968.
Segregated Portfolio Companies
The registration and annual fee for the Segregated Portfolio Company
is the normal exempt registration fee plus $2,000. In addition,
there is a fee of $1,000 for each segregated portfolio therein.
Foreign Companies
On delivery of the prescribed documents for registration of a foreign
corporation and each January thereafter, there is a fee of $850.
Exempted Corporation
Exempted companies are identitites where the proposed activities
of a company are to be carried out mainly outside the Islands. The
most appropriate use of offshore transactions is the exempt company
which is prohibited from doing business in the Cayman Islands except
in pursuance of its offshore business.
Benefits the Exempted Corporation:
An Exempted Company:
- need not keep a register of members, nor file annual returns
with the Registrar
- need not hold an annual general meeting
- has written guarantee that if taxes ever be introduced in the
Islands the company will be exempt
- for an initial period of 20 years, which period can be increased
to 30 years.
- may alter its Memorandum and Articles of Association without
restriction.
- may issue shares with nominal or no par value, and which can
be either negotiableor non-negotiable
- annual meetings must be held once a year in the islands by
the company's board of directors
REGISTRAR OF COMPANIES
The Registrar of Companies address:
Registrar of Companies,
+ 86 (0) 13858129718 (Miss Li)
+ 86 (0) 13819162168 (Miss Qiu)
TEL：+ 86 (571) 81951522 (571) 81951521
(571)81951520
FAX：+ 86 (571) 81951527
NOTES Copies of the Companies Law (R) and its regulations
may be obtained from the Clerk of the Legislative Assembly, P.O.
Box 890 GT, Grand Cayman, B.W.I. |
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