Cayman Islands
Company Formation

An exempted company is not subject to any kind of corporate taxation given that the company conducts its business mainly outside of Cayman Islands. In addition, the company can request a tax exemption certificate to ensure its tax-free status for a period of up to 20 years.

Register of company shareholders is not open to the general public. Moreover, company maintenance procedures are simple and straightforward. The company doesn't need to file its annual account to the government.

The name of an exempted company should not contain restricted words i.e. “royal”, “imperial”, “empire”, “municipal”, “chartered”, “co-operative”, “insurance”, “bank”, “assurance”, “gaming”, “lottery”... except with the prior consent of the Registrar. The name must also not be identical to the existing companies already registered. An exempt company does not need to include the word “Limited” or “Ltd” after its name.

To set up an Exempt Company in the Cayman Islands, you must meet the following requirements:

• a minimum of one director (no residency requirement);
• a minimum of one shareholder;
• a registered office in Cayman Islands; and
• no business with Cayman residents.

It is recommended that you seek the assistance of a professional services firm in company formation to ensure that all requirements are met and the process goes smoothly.

The government fees for setting up a Cayman Exempted Company depend on the authorized share capital of the company.

For example, a company with an authorized share capital of up to KYD 42,000 must pay KYD 600 (US$732) to register.

The fee is subject to change, and additional fees may be levied depending on the services rendered by your registered agent. Make sure you have the most up-to-date information on government fees and other costs associated with starting a business.

Hard copies of corporate documents are ready in around 7-10 working days from the full inception of all required documents. Express company formation in 48hrs for Cayman Islands company is also available if requested.

You can search for Cayman Islands companies primarily through the official online portal provided by the Cayman Islands General Registry.

To access detailed information, you need to create an account on the government’s eGov platform. The online database provides basic information such as company name status and registration details. For more comprehensive or official documents not available online, search requests can be submitted directly to the General Registry by mail, email, or in person. Vital information may require formal requests or payment of applicable fees.

Business chooses to incorporate in the Cayman Islands mainly due to tax neutrality and corporate confidentiality. The jurisdiction does not impose direct taxes such as corporate income tax, capital gains tax, or withholding tax. Additionally, the Cayman Islands provides strong privacy protections, with minimal public disclosure and streamlined administrative and reporting obligations.

Forming a Cayman LLC or Exempted Company depends on your business goals and governance needs. Both soffer flexibility and tax neutrality but differ significantly in their legal frameworks and applications.

In particular, Cayman LLCs resemble U.S.-style LLCs with member-managed governance and contractual freedom, often used for joint ventures and private equity. Cayman Exempted Companies follow a more traditional corporate structure suited for broader commercial activities and investment funds.

If you are unsure which structure best suits your needs, please do reach out to BBCIncorp for professional advice.