.jpg)
Is Cayman Islands a good option to form my offshore company?
The Cayman Islands company law attracts international companies and many offshore investors choose to incorporate within its jurisdiction. Setting up a company in the Cayman Islands is attractive to many. The economy is highly developed and stable. This includes support from trust companies, lawyers, banks, insurance managers, accountants, administrators and mutual fund managers. Additionally, businesses can find and support local support services.
What are the benefits of opening your offshore company in Cayman Islands?
Country is Whitelisted:
Unlike many other so-called "tax havens", the Cayman Islands follow international tax rules. This prevented the Financial Action Task Force and the Organization for Economic Cooperation and Development (OECD) from blacklisting the Cayman Islands. Obtaining a bank account is the main task for offshore companies founders. But founders forming their Cayman Islands companies enjoy a big relief here since there are several banking options at your disposal for your Cayman company.
Privacy is everything:
We are not required to file or register any personal documents with the Cayman Islands Government. This includes company documents related to your business. Examples include shareholder lists and meeting minutes. Therefore, it can be stored anywhere in the world. Furthermore, there is no obligation to hold an annual shareholders' meeting or an annual audit. The roster of directors and officers or the roster of shareholders is not made public. Additionally, corporate accounts remain private in this jurisdiction.
No upfront capital required:
While many other countries require to have or invest tens or even thousands of dollars in order to form your company, Cayman Islands has no such requirements. Many countries require that authorized capital (sometimes significant) is deposited in a bank or escrow account prior to incorporation. There is no capitalization requirement in the Cayman Islands.
Single director is allowed:
The Cayman Islands company law provides for companies with one director and one shareholder. Therefore, the same individual or organization can be both a director and a shareholder. In other words, the law recognizes a one-man company. The law does not require additional directors (including resident directors), shareholders or officers.
Quick company formation:
The incorporation process can take as little as one day and as maximum as 5 business days. No approval from state regulators is required. In addition, initial registration fees and annual renewal fees are extremely low compared to other jurisdictions. This gives you a faster turnaround and room of growth.
.png)
Are there any rules in naming my company?
Yes, to name your business in the Cayman Islands, you need to be aware of the limitations that come with this process. Company names must be unique and not similar to other company names. Unless permitted, companies also include words referring to royal patronage such as "banking", "insurance", "trust", "chartered", "assurance", "mutual fund", "chamber of commerce" or “Company Management”. Therefore, make sure the name you choose is available and usable before starting the incorporation process.
What information/documents are required to form offshore company in Cayman Islands?
Notarized / Certified true copies of valid passports for all directors/shareholders
Notarized / Certified true copies of residency proofs for all company directors/shareholders (i.e. utility bill or credit card bill)
Memorandum of Association
Articles of Association
Certificate of incorporation
Appointment of First Directors
Register of Directors and Officers
Register of member
Share Certiciates
First sole director's resolutions
Unanimous Written Resolutions
Do not worry if you felt overwhelmed. Our experts at Vepapu are always working day and nights to help you succeed in your Cayman Islands formation and management journey. We will make your journey a lot simpler and smoother.
.png)
Is having a local registered agent mandatory?
Yes, like any other tax-heavens, you are required to appoint a local registered agent while forming your company. A registered agent is a third party involved in the management of a company based in the Cayman Islands. This peculiarity that the agent resides within the same jurisdiction as the offshore company is a key factor in the functioning of the agent and the reason for his appointment. Under Section 245(1) of the Cayman Islands Companies Law 2018, a registered company must keep its beneficial ownership register at the company’s registered office.
The Registered Agent is responsible for the safe custody and maintenance of the Memorandum and Articles of Association, the Register of Members, the Register of Directors, copies of Resolutions, notices, and filings.
What is the role of a registered agent?
The role of the registered agent in the Cayman Islands is to act as an intermediary between the Government, the General registry, and the offshore company, as well as an intermediary between the company and any other third parties. It is the duty of the Registered Agent to keep documents up-to-date and available for inspection by the directors and shareholders of your company. The registered address is the legal address of your Cayman Islands company. While the usage is different, this address will be the same for both registered agent service and registered address service. All legal documents, such as the Memorandum and Articles of Association, the Register of Members, the Register of Directors, and copies of Resolutions, notices, and filings, are to be kept in this registered address.
Does my company need local directors or shareholders?
There is no need to have local directors or shareholders to form your offshore company in the Cayman Islands. A company must have at least one director in the company, but it can be yourself irrespective of your country of citizenship, origin, or residence.
Do I have to pay the share capital to form my Cayman Islands company?
The usual authorized share capital is US$ 50000 with par value US$ 1. There is no minimum paid up required to set up the company. Also note that the initial formation fees varies as per your authorized share capital amount.
What are the different types or structures of businesses in the Cayman Islands?
Limited Partnership:
The business structure requires his two persons, a limited shareholder and a general shareholder. It is a perfect company for companies that want to provide formal services to their customers. One of the two partners must be from the Cayman Islands. And finally, Limited Partners are only responsible for a portion of their contributions to the company, while General Partners are fully responsible to the company.
Offshore Company
To operate a foreign organization, it is necessary to hire company directors and shareholders. Yes, no capital is required to invest in this company, but according to regulations, a registered office is mandatory. For this reason, this type of entity is best suited for pipe companies and trading companies.
Non-Resident Company
Like offshore companies, non-resident companies have similar requirements. Some of these have no minimum investment capital, have individual shareholders and directors, and require a registered office. In addition, companies are required to file and publish full details of their shareholders, directors and registered capital annually.
Limited Liability Company (LLC)
Entrepreneurs may apply for registration as a limited liability company if the company's future business activities will be primarily overseas or outside the Cayman Islands. Since this form of organization has its own legal personality, shareholders cannot be individually responsible for the company's obligations and liabilities.
Exempt company
A tax-exempt company is a special type of company that complies with the Companies Act and has less stringent compliance standards. There is no need to publish a membership list or hold an annual general meeting on the island. Exempt businesses do most of their business off-island, so they need a license if they want to do business locally.
Foundation Company:
A foundation is a legal entity that can be set up by individuals for their own legal purposes and does not necessarily have to benefit others, so long as it does not exceed the general legal definition.
Resident Company:
A resident company is a type of legal entity that is permitted to operate in the Cayman Islands and is often owned by a Cayman Islander. Resident companies are obliged to maintain publicly accessible membership registers. Additionally, an annual account must be submitted to the registrar.
Special Economic Zones Companies:
A special economic zone company dedicated to international entrepreneurs can conduct commercial activities only within the special economic zone. Such companies must state in their articles of incorporation the purpose of conducting the special economic zone business.
Unlimited Company:
A public company does not protect shareholders from being held personally responsible for the company's debts and obligations. In case of liquidation, the partners or partners are jointly and severally liable in all respects.
What are ready-made companies?
A ready-made company is a company that was previously established and operated as a non-trading company. Buying a ready-made business allows you to:
1. Grow your business with an established company
2. It seems like a reliable company that has been around for several years.
3. Easily build business relationships
4. Easily establish business and banking relationships with previously registered old companies win customer trust
5. The rich history of your business gives new and existing customers more confidence in doing business with you
All our off-the-shelf companies are non-trade, completely clean, and free of any commercial debt or liability.
Are there accounting and auditing requirements for Cayman Islands companies?
An annual returns must be filed annually in the Cayman Islands. However, companies are not required to provide financial documents when filing annual returns. However, companies are not required to provide financial documents when filing annual returns. If you still want to be transparent and be saved from future hassle, you can opt for accounting and bookkeeping plan from Vepapu's dashboard post your company's formation. This makes your journey very simple and transparent.
What are the requirements to form an offshore company in the Cayman Islands?
To set up a tax-free company in the Cayman Islands, you must meet the following requirements:
1. At least he has one director (no residency requirement).
2. at least one shareholder;
3. An office registered in the Cayman Islands. and
4. It has nothing to do with the people of the Cayman Islands.
When setting up your business, we recommend that you seek the assistance of a professional service company to ensure that all requirements are met and the process goes smoothly and Vepapu's expertise comes into the picture. As promised, we will make your Cayman Islands formation and management journey hassle-free.
Does my information be displayed publicly by the Cayman government?
Information about the beneficiaries of the company must be communicated to the Registrar but cannot be made public under any circumstances. No one can find your confidential information. If you want further safety, you can opt for a nominee director and nominee shareholder from Vepapu where the details of yours will not be shown to registrar, anywhere, but you will still be ultimate beneficiary for your company.
.png)
Do I need to have a local registered office address?
Yes, and we can help you with that. You can leverage our local physical Cayman Islands address and use it in your offshore company formation. This also promotes a clean professional look for you and your company.
How long will it take to form company in Cayman Islands?
After fulfilling the requirements of The Compliance. An exempted company is incorporated upon filing incorporation documents with the Registrar of Companies. At Vepapu, we believe in serving you quickly and professionally. We complete your formations as quickly as just under 24 hours. Vepapu team's expertise in the field of incorporating your offshore companies is very invaluable in reducing this timeline allowing more room for your growth. A Certificate of Incorporation will be issued by the Registrar of Companies within 4-6 working days after filing if you are opting for the normal timeline route.
How to open a bank account for your offshore company?
After your Cayman Islands company formation you may wish to open an Offshore Business Bank Account. Vepapu has a close working relationship with Banks in Cayman, the US and Asia, who are willing to open accounts for Cayman entities. You will get access to the strong relationship that we have built with the banking providers helping you to open a bank account for you.
Are there any taxes in Cayman Islands? Do I have to pay any taxes under my offshore company in the Cayman Islands?
There is no income tax, capital gains tax and tax on allocated dividends. In addition, shareholders are not subject to inheritance or inheritance tax on the shares they hold or on the dividends received from the shares. The term of exemption is 20 years.
Can a foreigner or foreign company register a company in the Cayman Islands?
Foreigners can set up businesses there as 100% foreign ownership is not only allowed but encouraged by the government. Foreigners can easily set up a company as there are minimum requirements for setting up a company on the island, such as no residency requirements for directors.
How can Vepapu help in your Cayman Islands offshore company?
We will stand with you not only at the times of your offshore company formation, but also throughout your journey by helping you manage your company effectively and efficiently. We will be your one-stop-shop for your Cayman Islands offshore company needs.
