Top 10 Reasons to Incorporate a Business in the Cayman Islands
- Cayman Guide
- Jul 7, 2021
- 2 min read
Here are the Top 10 advantages of setting up a business in the Cayman Islands, where a business-friendly government asks for no taxes, requires minimal reporting and offers a high degree of investor privacy and safety.
A Global Presence
An investor does not have to live in the Cayman Islands in order to own and run a Cayman-registered business. This means that, in practice, the business can be run from anywhere in the world with a modern electronic communications infrastructure.
Local Tax Efficiency
The Cayman Islands is famous for its ‘tax neutral’ approach to generating revenue. Licence fees, stamp and import duties are the methods used to fund the islands’ administration, not direct taxes — either personal or business. Incorporating a Cayman Islands Exempted Company means no corporation tax, no income tax, no property tax, no capital gains tax, no withholding tax and no inheritance tax.
International Tax Efficiency
When structured correctly, company formation in the Cayman Islands offers the opportunity to legally maximise global income without exposure to international taxation, giving foreign investors 100% ownership of an offshore investment that attracts zero tax liabilities. Many so-called tax havens have a bad reputation and can be blacklisted internationally, but by following international tax regulations, the Cayman Islands has successfully avoided the EU and the OECD tax haven blacklists.
Access to Financing
The Cayman Islands has no legal prohibition on financial assistance given by a company for the purchase of its own shares or the shares of its holding companies. In many jurisdictions, such assistance is prohibited or restricted by law.
Everything’s in English
The long and fractious history of British involvement in the Caribbean that began with piracy, slavery and empire-building has a more benign face these days. The Cayman Islands, along with a handful of British-administered territories dotted around the region, share a common language, English, the language of international business. And all documents and legislation are in English, the official language of the territory.
Discretion and Privacy
Companies law in the Cayman Islands offers a high degree of privacy protection to companies and individuals. There is no law requiring the public release of the names of a company’s shareholders or directors. The only information publicly accessible from government records is the company’s registered address, which must have the company’s name and logo clearly displayed.
Political Stability
The Cayman Islands proudly proclaims itself as having the most stable economy and political system in the Caribbean, providing the highest standard of living for its population. Government and legal institutions are based on the British Common Law System, and ties with the UK are strong.
Streamlined Registration System
Cayman Islands company incorporation is a simple, efficient and speedy process that can take as little as a day. Just one director and one shareholder are required, and they can be the same person or a corporation, and they do not have to be residents in the Cayman Islands. The Registrar of Companies requires only the company name, its articles of association, a registered address, the amount of authorised capital and the type of shares issued.
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