Frequently Asked Questions
Corporate taxation on Cayman Islands company
Is there corporate taxation levied on a Cayman Islands company?
In the Cayman Islands, there is no corporate income, capital gains, payroll, property or withholding tax imposed on local or foreign companies.
A company established with the intent to undertake business mainly outside the Islands are classified as an exempted company which benefits from the removal of some annual company maintenance requirements.
Restricted business activities of Cayman Islands company
What are prohibited activities for an exempted company?
An exempted company is prohibited from trading with local residents, making an invitation to the public in the jurisdiction to subscribe for any of its securities. Business offerings over the internet (E-commerce) is allowed to provide from a place of business in the Islands. Furthermore, certain regulated businesses are required to be licensed by a local authority such as banking, insurance, trust, money services, mutual funds…
Cayman Islands company directors/shareholders
What is the minimum number of directors/shareholders?
At least one director and one shareholder are required to set up a Cayman Islands exempted company.
Are there provisions related to local or qualified criterions for company officers or members?
There are no specific obligations over the nationality or qualifications of company members/directors/officers.
Is information of company’s registers required to be disclosed?
The information in relation to company directors/shareholders/beneficial owners is required to be kept at the company’s registered office. Register of director has to be filed and updated with the Company Registrar within 60 days of appointment/removal or change. Professional agents or government authorities are prohibited to disclose information in company registers unless when cooperating with law enforcement agencies to combat illicit activities.
What is the minimum registered capital for an exempted company?
There is no minimum registered share capital requirement. But the usual authorized is usually selected to reduce government initial registration and renewal fee.
Are Bearer shares permitted?
All companies in the Cayman Islands are not allowed to issue bearer shares. Bearer shares issued before 13th Jul 2016 have to be converted to registered shares.
What are the maintenance requirements of the Cayman Islands exempted company?
An exempt company incorporated in the Cayman Islands has to fulfill followings to comply with local regulations:
- Maintaining one director/shareholder
- Maintaining local registered address in the Cayman Islands
- Filing annual return
The exempt company doesn’t need to prepare audited accounts, holding annual general meeting or filing tax return.