Why the Cayman Islands? We give you 5 reasons.
1. Great Economic Environment for Your Business
Strong currency and a common legal system based on English law give reassurance to businesses wishing to incorporate in the Cayman Islands. The British overseas territory is also one of the world’s leading providers of institutionally focused and specialised financial services, and a top choice for the structure and domicile of offshore investments.
2. Workforce that Empowers Your Business
A highly-educated workforce conversant in English makes assimilation easier for international businesses wanting to establish a foothold in the Cayman Islands. You can also set up a multiculturally diverse workplace since over 135 different nationalities are represented in the territory.
3. Cost Advantage for Your Business
The Cayman Islands is renowned as a “tax haven” owing to its tax neutral position except for duty tax – no corporate tax, no property tax, no capital gains tax, and no withholding tax among others! Rather, the Cayman Islands earns revenue via fees related to stay-over tourism and work permits, financial transactions, and import duties.
4. Mobility and Stability for Your Business
The Cayman Islands, as a British overseas territory, is well-placed in the international business scene. With links to the UK, it has a relative stable government and follows international tax regulations. Business owners will appreciate the flexibility afforded by the absence of requirements pertaining to local residency (for directors and officers), single directorship and ownership (i.e. a one-person company is permissible), and permission to merge with corporations from any jurisdiction without having to be based in the Cayman Islands itself.
5. Easier to Register and Manage Your Business
With no requirements for government regulatory authority approval, incorporation is possible just within a day! Also, the law of the Cayman Islands does not require certain corporate documents to be filed, such as shareholders’ registries and meeting minutes. There is also no requirement to hold annual shareholder meetings or annual audits.
The Cayman Islands’ economy is expected to grow over 5%, having maintained its Aa3 rating from Moody’s since December 1997. Although hit hard by the impact of the COVID-19 situation, with tourism accounting for about 70% of GDP and 75% of foreign currency earnings, the Cayman Islands has the strongest fiscal position regionally and is well-poised for recovery. Close to a decade of consecutive economic growth pre-COVID-19 saw the territory accumulating 680 million Cayman Islands Dollars (more than 800 million USD) in fiscal surpluses since 2012. Notably, the Cayman Islands Dollar is the strongest currency in the Caribbean and the 7th strongest currency in the world.
Since September 2020, the government has put in place several stimulus measures including the Micro and Small Business Grant Programme that provides an initial assistance of 1,000 Cayman Islands Dollars monthly to selected businesses, partnering with banks and credit unions to grant soft loans between 15,000 and 75,000 Cayman Islands Dollars to small tourism-related businesses, and a 9 million Cayman Islands Dollar fund for small business grants.
Jenga BCG can help you register 2 types of business entities: Exempted Company (EC) and Exempted Limited Partnership (ELP)
What’s required? We give you a brief overview.
Regardless of entity type, the requirements below are the same.
Jenga BCG provides the full suite of corporate secretarial and accounting services to meet your business needs be it a stand-alone business or subsidiary. Since 2017, Jenga BCG has already successfully empowered over 1000 businesses worldwide with our team of professionals armed with deep industry knowledge and connections via our regional partners.
1 - An authorised share capital of more than 50,000 USD attracts higher government fees.
2 - No direct taxes, but all offshore companies are required to pay an annual licensing fee directly to the government.
3 - An ELP is formed by one or more general partners (GPs) and one or more limited partners (LPs) entering into a partnership agreement. This partnership agreement may stipulate that contributions are payable by each partner. Therefore, no share capital is applicable to the ELP.
4 - An ELP may apply for an undertaking from the Governor that no law enacted in the Cayman Islands imposing any tax to be levied on profits or income or gains or appreciations shall apply to the ELP or to any partner in respect of the ELP. The undertaking will be for a maximum of 50 years and will also cover estate duty or inheritance tax.
5 - Only companies that are regulated by the Cayman Islands Monetary Authority (CIMA) are required to prepare, publish, and file financial statements.
6 - For example, Singapore and Bermuda allow the change of domicile of a Cayman Islands company to be under their jurisdiction.