Foreign investors can open a company in the Cayman Islands. There are several types of companies that can be chosen for incorporation, among which we mention the exempt company, the resident company or the non-resident company.
These company types offer the possibility of starting the process of offshore company setup or onshore registration, depending on the business plans investors have. Our consultants can assist during the process of Cayman Islands company setup, regardless of the type of registration foreign businessmen will opt for (onshore/offshore), there we invite to address us for advice.
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Basic characteristics of a company setup in the Cayman Islands
A legal entity incorporated in the Cayman Islands must have its registered address in the Cayman Islands. Following its incorporation, the shareholders can make different changes to the company, and they can also change the company’s initial registered address to a new location within the Caymans.
Also, regardless of the company selected, it must be noted that the legislation allows a single shareholder to open the company in the Cayman Islands (the shareholder can be a non-resident individual). The company must have an appointed director, who benefits from the same residency rules as the shareholder.
The Cayman Islands company formation law states that legal entities must have 2 statutory documents, the articles of association and the memorandum of association. These founding documents contain information on the company’s activities, shareholders, etc., and they need to be submitted to the Cayman Islands Registrar, which will issue a certificate of incorporation.
The exempt company in the Cayman Islands
A popular way of engaging in business activities in the Cayman Islands is by incorporating the exempt company, as this legal entity is designed for offshore activities. The Cayman Islands is popular for the advantages it offers for offshore company formation, therefore, in the following section, we will present more about this legal entity.
The exempt company is a type of company that is suitable for offshore businesses, as, in its founding documents, it is stated that it can’t engage in business activities related to the Cayman Islands. Its founders must submit a declaration which states that the legal entity won’t carry any economic activities in the Cayman Islands and that it won’t invite the public in the Cayman Islands to subscribe to its shares.
An exemption in this case can be granted only by obtaining a license. Our team can offer more details about this process. Concerning the process for setting up a company in the Cayman Islands, investors should know the following:
- the company can be incorporated by 1 shareholder;
- the shareholder(s) must appoint 1 director;
- the Cayman Islands company incorporation can be completed in 1 business day;
- the incorporation documents will be returned by the Registrar in a period of 5-7 working days (there is also the possibility to require the express service, in which the Registrar will prioritize the paperwork and will return it in just 24 hours).
Please know that during the registration of the company, you will have to pay registration fees. Annual fees are also charged, and the 2 procedures are handled by the Cayman Islands Government. This institution processes the fees for both onshore and offshore incorporation.
If you want to open a company in the Cayman Islands or you need information on other obligations you may have as a businessman, contact our team of specialists.