Why It’s Good To Form A Company In The Cayman Islands
So you’ve got a company you’re considering taking offshore but you’re not if sure it’s worth it. Why would I uproot from where my business is based and set up our base of operations in a foreign country? Why Cayman? Well, there are many distinct and attractive advantages in doing just that. For starters, taking your company and investments offshore to Cayman will help you greatly diversify your portfolio. By incorporating in the Cayman Islands you can utilize investment in all different types of asset classes and foreign currencies and, in kind, you can drastically reduce the risk in your portfolio and for your business overall. Setting up shop in Cayman is also going to open you and your business up to much more favorable tax treatment. In Cayman, for example, there will be no taxation on your capital gains, dividends or income. What does this mean plainly? You’ll get to keep much more of the money/income that you/your business are generating per annum. You’re also going to achieve a much higher level of protection for your assets doing business in the Cayman Islands.
Cayman offers a higher level of protection because this country has a solid political and economic climate catered towards international business and a heightened level of privacy. For example, if creditors are barking at your door it will be much, much harder for them to identify and seize your assets. Hopefully that day never comes for you and your business dealings but if and when it does you will have greater privacy and protection versus say the United States or Canada.
You will see a higher level of scrutiny in some instances as doing business offshore used to be viewed as a way to avoid paying taxes but this view is largely an antiquated way of thinking (too many James Bond movie references didn’t help). For the record, most offshore locales are transparent with tax authorities and most industries are now governed by strict due diligence practices; so it’s always wise to do business with firms that have a high level of ethics and reporting. Cayman has very stringent due diligence practices and oversight authorities making sure business practices are up to snuff.
Is Accounting, Banking, Trading & Opening Up Shop in The Cayman Islands Legal?
Of course! Setting up your business, bank accounts and trading base from the Cayman Islands is completely legal. Don’t believe everything you see on the silver screen. You can engage in all of the aforementioned business practices in the Cayman Islands without fear of the law as long as what you are doing is not being used for illicit purposes. No arms deals or drug rings here guys. Your business must be in good standing and on the right side of the law. If you are doing business in Cayman you must ensure that you are taking all the proper steps to report all offshore business/accounts/assets to your homeland’s tax authorities (IRS,etc.). Additionally, if you are trading/maintaining a trading or investment brokerage or trading account with a firm in the Cayman Islands you will be met with favorable tax treatment but that does not eliminate your obligation to reporting to the tax authorities at the end of the year. You’ll keep more money in your pocket at the end of the year, which is a huge advantage, but you must make sure to follow all the rules and regulations. In general, large corporations and people with a high net worth are the entities doing business in the Cayman Islands.
Are There Any Other Advantages To Forming An Offshore Company In Cayman?
Tons! In case you’re getting lost in financial jargon, it should be noted that the Cayman Islands is one of the most beautiful places to live in the world. A Caribbean tropical climate mixed with beautiful beaches and friendly people makes Cayman a highly desirable place to work and live. We have regular flights to many destinations in the United States, the UK, Europe and South America so getting to and from the islands is a breeze. We are also tremendously safe with a very low crime rate and we have all the amenities, restaurants, services and high-end hotels that can be found in any major cosmopolitan city. The technical and physical infrastructure (roads, bridges, water supply, sewage, etc.) is unrivaled anywhere in the region. There are no rolling blackouts and it is safe to traverse freely in any district across the three islands. Setting up a company in the Cayman Islands offers safety, security and preferential treatment to business operators. If this sounds good to you, look into it more deeply today.