Okay. You’ve done your initial research and you are beginning to think that setting up in the Cayman Islands is perfect for your business. That’s lovely, but now what do you do next? Well, you will want to consult with one of the professionals identified in previous articles for the specifics but this should give you a basic “Start Here” checklist for your next moves. Bear in mind, each company and individual is different and so, inherently, each individual entities’ specific needs will vary. By and large though, this is where your journey to forming a Cayman Islands company will begin…
How do I Set Up A Company In The Cayman Islands?
Step one for everyone: choose the type of company you wish to form. The most popular type of company that is traditionally incorporated in the Cayman Islands is an ‘exempted company’. This is a type of company that is, by its name, exempted from taxes and has a generally flexible corporate structure at its base. Step number two, you need to choose a name for your company. You will have to figure out a unique name for your company. Once you have that, you will have to make sure you have chosen one that has never been registered by yourself or anyone else before. You might have to get creative. As a rule of thumb, you can have your corporate services provider look through the Cayman Islands General Registry and make sure that your chosen company isn’t – or ever has been – registered before. Starbucks, Burger King and Fosters are probably out FYI. Once you have your company name chosen and cleared through the General Registry, then its now time to prepare the articles of association.
At this point you will need to identify who the directors of your new Cayman Islands Company will be and also clearly define how many shares each and every one of them will get. This has to be clearly defined to move on to the next step, which is registration. To register you’ll first want to ensure that you’ve opened and funded a bank account for your new company at a local banking institution. You can do this after you register the names of your company directors and that information has been entered into the official “Companies Register”. It is also at this time that you will secure all your approvals. If you are working in finance you’ll have more hoops to jump through with CIMA. Your financial services provider will spell out exactly all of the documentation and information you need to provide, and to whom you need to provide it. You will really need to utilize financial and legal experts at this point to ensure that all of your documentation is in order. Your company structure, documentation, licensing etc. will all depend on the type of business you conduct.
Okay I’m Still A Bit On The Fence. Why Should I Form A Cayman Islands Company?
Those pesky taxes! Business operators are always looking for ways to reduce their taxes as this directly affects the bottom line. Cayman Islands based companies are tax exempt or pay little tax. Lots of beneficial owners use Cayman Islands companies as holding companies – simply to receive dividends. Additionally, the Cayman Islands appeals to shareholders and directors due to the low administration costs to incorporate. Largely, you will need under $2000 to form your company here. There is also a certain level of inherent prestige in being based in the Cayman Islands. This is one of the most beautiful places to live in the world. Who wouldn’t want to work here? Enhanced confidentiality, asset protection and a favorable government attitude with respect to the freedom of businesses to operate as they choose round out just some of the many reasons it’s a wise decision to incorporate in the Cayman Islands.
This should give you a good base to start your incorporation adventure in the Cayman Islands. As mentioned previously, seek out a reputable corporate services firm and schedule a quick call. They will be more than happy to listen to your initial plans and put a more concrete schedule together to get you where you want to be with your Cayman Islands business. Once you have your company incorporated here the sky’s the limit and the limit is the sky. See you on the beach but hey, lose the necktie, this is the Caribbean.
Have questions about starting your corporate journey in the Cayman Islands? We’re here to help. Feel free to contact us here and one of our professionals will help you with any questions you have about this or any other Cayman Islands related queries.