According to the form of government, the islands are the English colonies, the administration of which is entrusted to the governor. In the world, the Cayman Islands are known as a major financial center and an attractive tourist oasis. And the offshore Cayman Islands is one of the most popular. The currency here is the Cayman dollar, which is equivalent to the US dollar in a 1: 1 ratio.
In order for a foreigner to obtain a permanent residence permit in the Cayman Islands, he needs to pay $ 2,400 per year. There are no restrictions on the ownership of land by non-residents, but to acquire a share in a business equal to more than 40%, permission from local authorities will be required.
The Cayman Islands have long been attractive as a convenient tax-free jurisdiction. Non-resident companies are exempt from paying taxes here. Also, capital gains, material assets received as a result of donations or inheritance rights are not taxed. There is only stamp duty that applies to real estate located on the territory of the islands. The rates are as follows: 7.5% tax is levied on transfer of property, and 1% tax is levied on mortgaging property.
The activities of companies in the Cayman Islands are governed by a law dating back to 1960, which is based on common English law.
In the Cayman Islands, the registration of offshore companies of the following types is possible: standard resident companies, classic non-resident companies and exempt companies - those that are limited in promotions, guarantees or have unlimited liability. In this case, non-residents are companies created in the form of joint stock companies. We will consider them in more detail.
Such a company is not allowed to develop its business in the Cayman Islands. The only exceptions are those situations when it looks like a logical continuation of the company's international activities. She also cannot own real estate, sign agreements with residents living on the islands. Here, an exception is made by various accounting, auditing and legal structures that will be required for organizational issues in the company's activities.
Every company incorporated in the Cayman Islands must have an office in the islands, which holds the register of the company. Also, accounting documents are stored there, where all financial activities are reflected, and if necessary, it can be used to explain and confirm a number of transactions.
The Cayman Islands officially allow nominee service and bearer shares to enhance privacy.
In terms of the choice of names for a company in the Cayman Islands, the offshore has no restrictions. The exception is the words that would predetermine the direct relationship of the company with the Kingdom, the Government or activities that are subject to compulsory licensing. Among the required words in a company name, the following must be present: Limited, Incorporated, Corporation, etc.
Requirements for opening offshore companies in the Cayman Islands
- the presence of a registered office on the territory of the islands;
- at least one director and one shareholder. These can be both individuals and legal entities;
- the presence of a secretary, provided that only one director works;
- authorized capital of $ 900;
- holding a meeting at least once a year in the Cayman Islands. For this purpose, it is better to attract resident directors.
Information about the directors of the company and its financial statements are not included in the Register, this guarantees a high level of confidentiality. A company registered in this way is exempt from taxes for 20 years from the date of commencement of activities, regardless of the amendments that may be made to tax legislation during this time.
Over the past few years, the Cayman Islands have become known as a large banking center - more than 560 banking institutions operate on their territory. The activities of banks are strictly regulated, therefore the largest banking centers in the world, located in New York or Tokyo, recognize their right to conduct ultra-reliable banking operations. At the same time, the management of banks is very scrupulous about the choice of clients and in every possible way suppresses illegal activities of companies, as well as transfers and storage of funds obtained by fraudulent means. You also need to take into account that there are two types of banks in the Cayman Islands: one can work with non-residents, and the other cannot.
Benefits of being offshore in the Cayman Islands
- maintenance of documentation in English;
- no need for annual accounting and audit reports;
- a minimum set of directors and shareholders;
- tax exemption with few exceptions.
- the minimum amount of the authorized capital
Offshore of the Cayman Islands, which does not create any difficulties, are ideal for conducting financial and shipping business.