Setting Up Shop In The Cayman Islands
Thinking of relocating your business to the Cayman Islands? The first thing you need to determine is which type of company will suit your interests and your type of business. This can be daunting but professional advisors and attorneys are located here to help you navigate the formation of a Cayman Company. Let’s get started! In general terms, there are two types of corporate entities in Caymans Islands: Exempted Private Limited Companies and LLCs.
For an Exempted Private Company there are some general restrictions regarding the name that are of note. Firstly, there are restrictions and a company will not be registered if the company name is identical with a name by which a company in existence is already registered or any translated name entered on the register of companies. It cannot resemble such a name or be translated into a different language name so as it is meant to deceive. For example you can’t register Coca-Cola or any derivate of that name that could sound like it in Chinese, French, etc. An exception exists where the company in existence is being dissolved and said company has signified its consent for you to do so. Additionally, the Cayman Islands Registrar requires that the name of your company doesn’t contain the words “Chamber of Commerce” (unless the company is a company which is to be registered under a license granted specifically by the Governor of the Cayman Islands without the addition of the word “Limited” or the abbreviation “Ltd.” to its name or if it contains the words “building society”.
All a bit technical yes but these are important rules to be aware of. You will also need the permission of the Cayman Islands Registrar to form a company with a name that contains the words “royal”, “imperial” or “empire” or is believed to suggest the patronage of Her Majesty The Queen or the association with any member of the British Royal Family. Your new company name also cannot use the words “municipal” or “chartered” or use any words that show links to other local authorities or with any society or body incorporated by Royal Charter. You also cannot use words like “cooperative”, “bank” or “insurance” without specific approval. Moreover, words like “gaming”, “gambling” or “lotteries” are also big No-No’s and will not garner your business approval. We’ll delve more into the specifics later in future posts but these beginning regulations are the first things you need to mull over before setting up shop in the Cayman Islands.
LLC Cayman Company Formation & What You Need To Start
LLCs have pretty much the same rules as Exempted Private Limited Companies. You cannot have a name that is identical to another company unless they are being dissolved and it has given you significant permissions to do so. You can also not set up an LLC that is named with the intent to mislead and deceive. So no tomfoolery here ladies and gentleman! Once you decide which type of company works best for you what do you need to submit to begin the process? Glad you asked. Firstly, you will need to submit some general information about your company including who will be the Director(s), Shareholders and what everyone’s share ratios are (i.e. who owns how much stake in your new Cayman Islands company?). You are also going to need to define what types of services you will need for your company. These can be a bank account linked to the business, nominee services, a physical office need or an address where your company will be located, accounting services or the need to register any intellectual property or trademarks you may hold. Once you determine what services you will need for your new Cayman Islands company you will need to determine how quickly you want to have this company officially up and running. These time frames are not that long and a normal company can be formed in as little as four business days. Should you be in a rush – some requests can be fulfilled in as little as two business days provided you have submitted all the required documentation and paid all the requisite fees. Typically these fees are paid by bank transfer, a major credit card or via transfer methods like PayPal. Just remember, if you are paying for your company formation via transfer from Europe or Asia it will take longer for your funds to land on the island and clear.
Forming a company in the Cayman Islands is a relatively easy and straightforward process and we’ll delve a bit more into it in future posts. The important thing to remember is that you must have your paperwork in order and the company you are forming must be in good standing and have an appropriate name that is not meant to confuse or deceive. There are many companies and law offices on the island that can assist you in setting up your company so the best bet is to reach out to one of them for the latest regulations and the proper steps. Setting up a company in Cayman is relatively easy business and business is good!