Cayman Islands Offshore Company (Exempted Company)
The requirement for registration of Cayman Islands exempt company are;
- Minimum 1 shareholder
- Minimum 1 director (not necessarily a local resident)
- No minimum requirement of share capital
The entity shall have a registered office in the Cayman Islands.
- This legal entity may not do business with local Cayman citizens and is not subject to corporation, income of capital assets, inheritance or wealth tax. There is a minimal fee of USD 854 charged annually
- No requirement for financial statements of the company or appointment of auditors
- Such an entity is commonly utilized as trading company or as Conduit Company for the international investment.
Cayman Islands Non-resident Company
An alternative option for the Cayman Islands offshore company is the non-resident company. The requirements are the same as for the exempt company. It must have;
- Minimum 1 shareholder
- Minimum 1 director
- No minimum share capital required
- The company shall have a listed office and must keep a registry of members available for inspection Details of the members, the directors and the up-front capital must be presented to the registrar annually
- These companies are restricted from trading within the country and taxes are not imposed. The annual fee is USD 701.
- This company can be changed to an exempted company or a resident company
- Favorable usage: Non-resident companies are beneficial for offshore activities and business events
Cayman Islands Exempted Limited Partnership (ELP)
- Exempted Limited Partnership (EFP) require at least 1 general partner and 1 limited liability partner. The general partner shall consent to all contracts made by the partnership and is liable for losses while the limited liability partners enjoy the perks of limited liability. All the ELPs are required to have a registered Cayman office and must have a minimum of 1 general partner being a resident of the Cayman Islands as per Partnership law.
- As stated by the taxation laws of the Cayman Islands, neither the ELP nor the partners are liable to any tax. ELP are not allowed to conduct business activities in the Cayman Islands. ELPs are subject to an annual fee of USD 1,463.
- Recommended for professional service companies
Excluded Person Financial Company
- Similar requirements as ELP
- The Cayman Government can exempt certain persons (excluded persons) who are involved in securities investment from full licensing requirements based on filing a yearly declaration with CIMA and an annual fee
The excluded persons are;
- An entity involved in securities investment management for members of any of these groups
- A person conducting investments specifically for a registered business
- A person regulated by securities investment under a known overseas regulatory authority
The preferred use of the excluded person is associated with overseas trading companies or companies involved in investment in securities.