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.
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…
At least one director and one shareholder are required to set up a Cayman Islands exempted company.
There are no specific obligations over the nationality or qualifications of company members/directors/officers.
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.
There is no minimum registered share capital requirement. But the usual authorized is usually selected to reduce government initial registration and renewal fee.
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.
An exempt company incorporated in the Cayman Islands has to fulfill followings to comply with local regulations:
The exempt company doesn’t need to prepare audited accounts, holding annual general meeting or filing tax return.
Final Rules of BVI Economic Substance Released
For those who are BVI legal entities, it should be noted that amendments have been made on The Economic Substance (Companies and Limited Partnerships) Act, 2018 (ESA) which was enacted in the British Virgin Islands on 31 December 2018 and came into effect on 1 January 2019.
