Setting up a company in the cayman islands is a popular choice for businesses looking to establish a presence in the Caribbean. The process is relatively simple and can be completed in as little as two weeks. In this guide, we will outline the steps you will need to take to form a company in Cayman Islands. We will also discuss who can help with the process, and what types of companies are eligible for registration.
Benefits of Cayman Islands Company Formation
There are many benefits to incorporating a company in Cayman Islands. Perhaps the most obvious is the fact that the Cayman Islands are a well-regarded jurisdiction with a strong reputation for business-friendly regulation. This means that companies registered in the Cayman Islands enjoy a high level of protection and certainty when it comes to legal and financial matters.
Another key benefit of company formation in Cayman Islands is the favourable tax environment. The Cayman Islands have a zero-rate corporate income tax, and there is no capital gains tax or value-added tax. This makes the Cayman Islands an attractive location for businesses looking to operate in a low-tax environment.
Finally, company formation in Cayman Islands also offers access to a wide range of banking and financial services. The Cayman Islands are a leading international finance centre, and businesses registered in the jurisdiction have access to a wealth of banking and investment options.
Incorporation Requirement
In order to form a company in Cayman Islands, you will need to satisfy the following requirements:
– The company must be registered with the Cayman Islands company registry
– The company must have at least one shareholder
– The company must have at least one director
– The company must have a registered office in Cayman Islands
Accounting and Tax Obligation in the Cayman Islands
When forming a company in the Cayman Islands, it is important to be aware of the various accounting and tax obligations that apply. All companies registered in the Cayman Islands are required to maintain accurate financial records and file financial statements and other relevant documents with the company registry.
In addition, all Cayman Islands companies are subject to Corporate Income Tax. The tax rate is currently 12.50%, and companies are required to file a company income tax return each year.
Issued share capital requirement
In order to form a company in the Cayman Islands, you will need to have at least one issued share. The share can be owned by any individual or company and can be held in any currency.
Registered Office Requirement
The company must have a registered office in the Cayman Islands, and at least one director who is a resident of the Cayman Islands. The company will also need to file an annual return and pay an annual government fee.
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Documents needed for Cayman Islands Incorporation
When incorporating a company in the Cayman Islands, you will need to provide the following documentation:
– company name and registered office address
– company directors and shareholders
– company memorandum and articles of association
– company registered agent
You may also need to provide:
– company certificate of good standing
– company statutory declaration
– company resolution appointing company secretary
The company name must be approved by the Cayman Islands Registrar of Companies. The registered office address must be within the Cayman Islands and can be either a physical address or a postal address. The company directors and shareholders must be individuals, not companies. The company memorandum and articles of association will set out the company’s constitution and how it is to be run. The company registered agent is responsible for receiving legal notices on behalf of the company.
The company certificate of good standing confirms that the company is in good standing with the Cayman Islands authorities and has not been struck off or dissolved. The statutory declaration confirms that all the information provided in the application for incorporation is true and correct. The resolution appointing the company secretary should state who this role will be taken by within the company.
If you are unsure about what documentation is required or need help preparing any of the documents, you can contact a professional service provider who will be able to assist you.
What Should You Do After Incorporation
The company formation process can be a long one, with plenty of documentation and company registration. But it’s worth the wait. After you have registered your company in the Cayman Islands, there are some important things to do next. These will ensure that your company is set up correctly and ready for success.
Appoint Company Director and Company Secretary
The first thing to do is appoint company directors who will run the day-to-day operations of the company on behalf of the shareholders or owners (you). This should be done within 3 months after incorporation but if this deadline has been missed you may apply for an extension from CICR which must be submitted before 30 days have passed since the incorporation date. You should also appoint a company secretary, who’ll be responsible for keeping the minutes of company meetings and other company records.
Appoint registered agent
The company must also appoint a registered agent, who will be responsible for receiving legal notices on behalf of the company. This is a compulsory appointment and you cannot act as your own registered agent. The registered agent can be an individual or company, but it is important to choose one that you trust and that has good knowledge of Cayman Islands company law.
Open a company bank account
You should also open a company bank account so that the directors can start conducting business through the company. This account should be in the name of the company and not in the name of any individual director or shareholder. The bank will require certain documents from the company before opening the account, such as copies of the memorandum and articles of association, certificate of incorporation and company seal.
Once all of these steps have been completed, your company will be fully registered and ready to do business in the Cayman Islands. For more information on company formation in the Cayman Islands, please contact a professional service provider.
Annual Maintenance
The annual maintenance requirement for a Caymans company is the filing of an annual return and payment of the annual license fee. The annual return must be filed within 28 days of the company’s anniversary date. The company’s anniversary date is the date that it was incorporated or registered. The annual return must include the company’s name, registered office address, company directors and shareholders (including their addresses and nationalities), and the company’s registered agent. The annual license fee is US$600 and must be paid within 28 days of the company’s anniversary date.
The Cayman Islands company registry is maintained by the Companies Registry. The Companies Registry can provide more information on the filing of annual returns and payment of annual license fees.
Key Takeaway
If you would like assistance on register company in cayman islands, FastLane will be your optimal choice. FastLane is experienced on providing one stop solution for our clients, helping with company formation, company secretarial service, assistance with bank account opening, accounting, audit and tax filing services.