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The Cayman Islands

The Cayman Islands are a British Overseas Territory situated in the Caribbean Sea approximately 500 miles south of Miami, Florida. The Islands enjoy sophisticated legal, accounting and banking services and derive political stability by virtue of their connection with Britain. The legal system is British and the government is headed by a Governor appointed by the Crown who presides over a Government made up of twelve locally elected members and three senior civil servants who hold ex-officio office.

There is no exchange control and no restriction on the movement of funds to or from the Islands.

The Cayman Islands have no double taxation treaties with any other part of the world but have undertaken to assist foreign governments by giving them information where a Cayman Island Company has been used or involved in activities which are mutually considered as criminal.

THE CAYMAN ISLANDS EXEMPTED COMPANY

A Cayman Island exempted company has the following characteristics:

  1. Shareholders:
    Shares of a Cayman Islands Exempted Company must be issued in registered form, although details of the shareholders are not maintained on public record. Issuance of Bearer shares in a Cayman Islands Exempted Company are only permitted when lodged with an Authorised Custodian within the Islands. Corporate shareholders are permitted.
  2. Directors:
    A minimum of one director is required to set up a Cayman Islands Exempted Company and corporate directors are permitted.
    Details of the directors must be advised to the company registrar but this information is not available for public inspection. Directors of a Cayman Islands Exempted Company do not have to be resident in the Cayman Islands.
  3. Officers/Secretary:
    The Cayman Islands Companies Ordinance does not make any specific reference to a requirement for a company secretary in a Cayman Islands Exempted Company. However, it is customary to appoint one, who may be either a natural person or a body corporate.
  4. Restrictions on Name & Activity:
    Generally, although not strictly necessary, names of a Cayman Islands Exempted Company should end with one of the following words, or abbreviations thereof – Limited, Corporation, Incorporated, Societe Anonyme or Sociedad Anonima.The following words, and their associated activities, cannot be used without approval and/or licensing: Assurance, Bank, Building Society, Chamber of Commerce, Chartered, Cooperative, Empire, Imperial, Insurance, Municipal and Royal.
  5. Local Requirements:
    As a matter of local company law the Cayman Islands Exempted Company MUST maintain a registered office address within the Cayman Islands. We would generally provide this service and a local resident agent as part of our domiciliary services.
    Every company must maintain proper books of account including where applicable, material underlying documentation including contracts and invoices. Such documentation must be retained for a minimum period of five years from the date on which they are prepared”. Failure to retain such records shall be subject to a penalty of $5,000.
  6. Timescale:
    Incorporation of a Cayman Islands Exempted Company takes approx. 10 days and document legalisation can take another two weeks to complete.
  7. Reporting:
    There is no requirement in a Cayman Islands Exempted Company to file accounts with the registrar. However, an annual return must be filed which is a simple declaration.
  8. Taxation of a Cayman Islands Exempted Company:
    There are no taxes in the Cayman Islands on income, capital gains, profits, dividends, investments or capital transfers. The Cayman Islands Exempted Company may apply for a twenty year guarantee against taxation from the Cayman Islands Government, which may be extended to thirty years on application.
    Cayman Islands Exempted Company are non-resident companies and hence not entitled to tax residency certificate and also can not avail benefits under any Double Tax Avoidance Agreements.
  9. Confidentiality:
    The Confidential Relationships (Preservation) Law makes it a criminal offence to divulge confidential information or to willfully obtain or attempt to obtain confidential information relating to a Cayman Islands Exempted Company. The Law imposes a maximum penalty of a fine of CI$5,000 and/or a term of imprisonment of up to 2 years. However as with most jurisdictions, this confidentiality is being eroded by subsequent legislation such as the Proceeds of Criminal Conduct Law 2001 and mutual assistance treaties whereby there will be disclosure of information in criminal offences, including tax offences.

10. Cayman Islands Exempted Company Renewal:

Renewal of Cayman Islands Exempted Company, to be paid in December every year. This is a requirement by Company Registry. Failure to do so results in penalties and could result in the striking-off of the company from the Company Registry.

Latest valid passport copy and recent utility bill for address proof of shareholder/director are required to be submitted at every renewal as a part of enhanced due diligence. If shareholder is a corporate entity, then latest certificate of incumbency and above stated docs of directors would be required.

11. Documents Required in Setting Up a Cayman Islands Exempted Company:

KYC Documents for individual Director/Shareholder:

  1. Passport – original to be verified personally in our office, otherwise client can provide an original notarized copy of the passport
  2. Proof of address (in the form of utility bill, dated less than 3 months)
  3. Bank reference (dated less than 3 months with satisfactory record clearly mentioned and also the time period the client has been dealing with the bank: minimum of 2 yrs)
  4. Detailed CV
  5. Professional reference letter (can be issued by Lawyer or Certified Public Accountant)
  6. Dully filled FATCA Form
  7. Notarized US Declaration (if a US Person)

KYC for Corporate Director/Shareholder:

  1. Certificate of Incorporation
  2. Registered address and place of business
  3. Certificate of Current Standing if incorporated more than 1 year
  4. Register of Directors
  5. Register of Shareholders
  6. Memorandum & Articles of Association

All documents of the corporate entity must be certified by a Lawyer or Certified Public Accountant

Incorporation of Cayman Islands Exempted Company begins from USD 5,340/-

Global Business Services DMCC has helped many individuals and corporate entities to set up Cayman Islands Exempted Company. Our Company acts as a one stop solution for Cayman Islands Exempted Company incorporation services.

If you are looking for Cayman Islands Exempted Company set up, please get in touch with us for professional assistance.

Whilst every effort has been made to ensure that the details contained herein are correct and up-to-date, it does not constitute legal, tax or other professional advice. We do not accept any responsibility, legal or otherwise, for any errors or omissions.

GBSOur Office
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OUR LOCATIONWhere to find us?
For company formation and company incorporation services please contact us at our mailing address:

Office No.12A-06,
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Plot No. F2,
Jumeirah Lakes Towers,
Post Box 309074,
Dubai (U.A.E)

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GBSOur Office
Organically grow the holistic world view of disruptive innovation via empowerment.
+971 4 4471803
OUR LOCATIONWhere to find us?
For company formation and company incorporation services please contact us at our mailing address:

Office No.12A-06,
13th floor HDS Tower,
Plot No. F2,
Jumeirah Lakes Towers,
Post Box 309074,
Dubai (U.A.E)

QUICK LINKSOur Services
GET IN TOUCHGBS Social links
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AVANTAGEHeadquarters
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OUR LOCATIONSWhere to find us?
GET IN TOUCHAvantage Social links
Taking seamless key performance indicators offline to maximise the long tail.
AVANTAGEHeadquarters
Organically grow the holistic world view of disruptive innovation via empowerment.
OUR LOCATIONSWhere to find us?
GET IN TOUCHAvantage Social links
Taking seamless key performance indicators offline to maximise the long tail.

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Copyright © 2020 Global Business Services.

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