Cayman Islands

One of the Caribbean's most prestigious offshore jurisdictions is undoubtedly the Cayman Islands. Zero taxation, GDP per capita almost $50,000. The country is strongly oriented towards cooperation with companies from the USA and Canada. The Cayman Islands offer stability, high protection of privacy of ownership and a superior financial background. Virtually every major global bank or insurance company has a branch on the islands. The country is one of the world's major centers of offshore banking.

Benefits of doing business in the Cayman Islands

Above all, it is the legal system. As it is the territory of Great Britain, this system is based on English common law. This makes everything easier, especially if you are used to British law. Your employees and accountants will have no problem coming to an agreement.

To establish a company, one shareholder and one director are required, who do not have to be residents.
Setting up a company is super-fast. You establish a company within 24 hours and this company will have a 20-year exemption from paying taxes. The Cayman Islands are synonymous with saving money!

Another great advantage is anonymity. The register of companies is not publicly accessible. No one will know that you are a business owner, what your profit is… not your business partners, not the government. Just nobody.
As for bearer shares – they are allowed but definitely not encouraged and must be kept in an authorized repository.

There is no form of taxation relating to individuals, companies or trusts in the Cayman Islands. Tax-exempt offshore companies are thus completely exempt from corporate income tax, capital gains or withholding taxes.

Registration of an Exempt Company is subject to the acceptance of the Company's Memo­randum and Articles of Association, payment of a registration fee and an affidavit of conducting business only outside the Cayman Islands. The minimum required share capital of a tax-exempt Cayman offshore company is $1, with the usual amount of share capital being $50,000. Permitted types of shares are registered shares with or without par value, preference shares, redeemable shares, and shares with or without voting rights. Shares may be issued to bearer but must be deposited with a licensed custodian. The registered office of the offshore company must be located in the Cayman Islands.

Disadvantages of doing business in the Cayman Islands

We could lie to you and claim that it is a perfect tax haven, but we want to help you choose the best jurisdiction for your business and therefore we have to point out a few disadvantages that could be lurking for your business in the Cayman Islands.

• High annual fee to the government. $1,100 is an amount that is significantly higher than the fees in other Caribbean offshore centers.
• Companies have to keep accounts, which means additional costs.
• Another reason is the increasing level of cooperation with other states and emerging agreements on the exchange of tax information.
• In 2001, the Cayman Islands introduced a new „KYC“ („Know Your Client“) audit system, whereby newly established companies must provide information on business activities, ownership structure, etc. The state thus ensures that its jurisdiction is not used for criminal purposes.

Although the Cayman Islands have some disadvantages for offshore companies, they are still a stable jurisdiction with a developed legal system that still has a lot to offer today. It is a major financial center in the Caribbean, representing more than 550 banks and trust companies. Large accounting firms and law firms are present here. So, if you approach the formation of a company responsibly and smartly, the Cayman Islands can become a cornerstone in the formation of your savings and business activities.

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