• Cayman Islands Exempted Company

  • GENERAL

    Legal Framework

    Cayman Islands Exempted Companies are governed by the Cayman Islands Companies Law.

    Special Characteristics

    An Exempted Company is prohibited from trading in the Cayman Islands. However, it may enter into contracts in the Cayman Islands, which are necessary to carry on its business outside the Cayman Islands e.g. contracts with service providers etc.

    An Exempted Company may obtain an undertaking by the Cayman Islands Government confirming its tax-free status for a period of 20 years.

    The name of an Exempted Company does not need to include the words "Limited" or "LTD".

    The Exempted Company is the most common type of legal entity in the Cayman Islands.

  • SHAREHOLDERS

    Liability of Shareholders

    The liability of the shareholders of an Exempted Company is limited up to the unpaid amount of the shares they hold.

    Minimum Number of Shareholders

    The minimum number of shareholders of an Exempted Company is 1 and the maximum is unlimited.

    Restriction on Nationality/Residency of Shareholders

    There is no restriction on the nationality or residency of the shareholders.

    Corporate Shareholders

    The shareholders of an Exempted Company can be individuals and/or legal persons.

    Nominee Shareholders

    The use of nominee shareholders is allowed.

  • DIRECTORS

    Minimum Number of Directors

    An Exempted Company should have at least 1 director.

    Restriction on Nationality/Residency of Directors

    There is no restriction on the nationality or residency of the directors.

    Corporate Directors

    The directors of an Exempted Company can be individuals and/or legal persons.

  • SHAREHOLDER MEETINGS

    Shareholder Meetings

    An Exempted Company does not need to hold an annual general meeting.

    In the event that the shareholders of an Exempted Company wish to carry out general meetings then these can take place outside the Cayman Islands.

  • CAPITAL

    Minimum Capital Requirement

    There is no minimum capital requirement for an Exempted Company.

    Currency of Capital

    The share capital of an Exempted Company can be denominated in any currency.

    Non-par Value and Bearer Shares

    The Law permits an Exempted Company to issue shares without nominal or par value.

    The Law also permits an Exempted Company to issue bearer shares, although such shares are required to be held by an authorized custodian within the Cayman Islands.

    Capital Duty

    There is a capital duty of CI$50 on the issuance of shares.

  • REGISTERED OFFICE

    Registered Office

    It is a legal requirement for every company in the Cayman Islands to have a registered office in the Cayman Islands.

    Company Secretary / Registered Agent

    Every company in the Cayman Islands should have a local registered agent.

  • FOREIGN INVESTORS

    Restrictions on Foreign Investors

    There are no restrictions on foreign investors investing in an Exempted Company in the Cayman Islands.

  • FORMATION

    Time Needed for Incorporation

    It usually takes 3 - 4 days to register a company in the Cayman Islands.

    Shelf companies are available.

  • CONFIDENTIALITY

    Beneficial Owners

    The details of the beneficial owner are disclosed to the service provider and are not available on public record.

    Registered Shareholders

    The details of shareholders are not available on public record.

    Directors

    The details of directors are not available on public record.

    Financial Statements

    The accounts are not publicly accessible.

  • FILING REGUIREMENTS

    Filing with the Registrar of Companies

    An Exempted Company should submit a very simple annual return in January each year, which includes a statement, signed by the company secretary or director, confirming that the company conducted its business outside the Cayman Islands.

    Filing with the Tax Authorities

    An Exempted Company does not need to submit an annual tax return or its annual accounts to the Tax Authorities.

  • RECORDS

    Accounting Records

    An Exempted Company needs to maintain accounting records. These can be maintained outside the Cayman Islands and in any currency.

    Financial Statements

    There is no requirement for the preparation of annual financial statements of an Exempted Company.

  • AUDIT

    Audit Requirement

    The Law does not require the accounts of an Exempted Company to be audited.

Compare Cayman Islands to other jurisdictions and see the difference in corporation tax rates, tax residency requirements, VAT rates, capital gain taxes, etc.

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