The Cayman Islands has always been one of the best choices when opening an offshore company, which means the compliance in accounting and taxes is quite straightforward. According to TMF’s Global Business Complexity Index (GBCI), in 2021 the Cayman Islands was the third least complex jurisdiction among 77 jurisdictions to open an offshore company in. It rose from ranking 8th in 2020.
The Cayman Islands General Registry states there were a total of 16,748 companies registered in 2021, a 43% increase in comparison to 2020.
Why the Cayman Islands?
- Tax-neutral jurisdiction: The Cayman Islands imposes no tax on corporate income, capital gains, property, payroll, inheritance, gifts, or wealth, and the Cayman Islands provides an attractive place for foreign individual businesses to minimize their tax exposure.
- No director residency requirements: Many countries around the world require at least one director of the company to be a local resident or require the majority of the members of the Board of Directors to be local residents. There are no such residency requirements for the director of the company, so the company does not have to appoint a nominee director.
- Minimal maintenance: There is no statutory requirement for the filing or auditing of company accounts unless your company is regulated by the Cayman Islands Monetary Authority (CIMA). However, every company is required to keep proper books of accounts, reflecting a true and fair view of the state of the company’s affairs and explaining its transactions.
- Confidentiality: The Cayman Islands does not require companies to submit financial statements or publicize the names of the shareholders, directors, and officers, and therefore provides maximum privacy to the investors.
- Speedy incorporation: When all correct information and forms are submitted, the time to obtain the Certification of Incorporation could be as short as two working days.
- No minimum capital requirement: There is no requirement for any monetary investment at the time of incorporation. However, there is a minimum of one share equity investment required for the company’s capital.
What Do You Need for Incorporation?
- Memorandum and Articles of Association
- Certified individual shareholders’ and Directors’ address proof and passport
- Certified corporate shareholders’ certificate of Incorporation, register of directors, and register of shareholders
- A reserved company name: words like “Bank,” “Trust,” “Insurance,” or “Fund” are not allowed to be used in the proposed name for the company, and the name must be approved by the CIMA or the Registrar before submitting the incorporation application
- A registered agent who is located in the Cayman Islands
- A registered office that is maintained by the company’s staff and the registered agent
After the application, the next steps are obtaining the Certification of Incorporation, preparing and signing the activation document of the new company, preparing the whole set of the company kit, and opening a bank account.
Want to incorporate in the Cayman Islands? CanCan can help. We are experienced in incorporating any type of company while being in compliance with the Cayman Islands’ regulations. You can find more information here: https://en.cancangroup.com/
When an offshore bank account is opened for the company incorporated in the Cayman Islands, the documents you generally need are:
- Bank account application form
- Certified copies of identification for all directors and shareholders that include passport and proof of address
- Certificate of Incorporation
- Memorandum and Articles of Association
- The company’s good standing status certification
- Business plan
Want to open a bank account for your Cayman Islands’ offshore company? CanCan can help. We are experienced in opening bank accounts for offshore companies. Contact us here: https://en.cancangroup.com/about-us/#contact
About CanCan
CanCan has been providing business and compliance consulting to international businesses in China for 25 years. We are professionals from China, Hong Kong, and the US with international accounting and legal firms practicing experience. We provide quality service, and we understand the importance of the practicalities in incorporations. Aside from incorporation, we also offer a wide range of consulting services including acting CFO, financial due diligence, compliance advisory, and mergers & acquisition consulting. You can find more information here: https://en.cancangroup.com/
