Question 1

Can non-residents incorporate a company in the Cayman Islands?

Accepted Answer

Yes, non-residents can easily incorporate a company in the Cayman Islands without any restrictions. Foreigners can own up to 100% of the company, and there is no requirement for a local member, officer, shareholder, or director.

Question 2

Why is the Cayman Islands considered a popular jurisdiction for offshore companies?

Accepted Answer

The Cayman Islands is a globally recognized offshore financial hub, making it a top choice for businesses and individuals for decades. It offers tax neutrality, strong privacy laws, and a business-friendly regulatory framework. The country’s consistent efforts to comply with evolving international regulations on privacy, anti-money laundering, and anti-terrorism financing have kept it white-listed by major countries and organizations such as the US, EU, and OECD.

Question 3

Is the Cayman Islands a tax haven?

Accepted Answer

While the Cayman Islands is often labeled as a tax haven, it is more accurately described as a tax-neutral jurisdiction. The country imposes no corporate, income, capital gains, or withholding taxes, providing significant tax efficiency for offshore businesses. However, the Cayman Islands complies with global standards for transparency and anti-money laundering regulations, ensuring a long-standing reputable and legitimate business environment.

Question 4

Can a company in the Cayman Islands own assets internationally?

Accepted Answer

Yes, a Cayman Islands company can hold assets internationally in various forms. Commonly held assets include real estate properties, company shares, financial investments, and digital assets like cryptocurrencies and NFTs. This flexibility makes Cayman companies ideal for global investment management and asset protection strategies.

Question 5

Can the details of a company be searched publicly?

Accepted Answer

No. The Cayman Islands does not have publicly accessible directories, so details of an exempted company or an LLC, such as directors, shareholders, and officers, members, their financials are not publicly disclosed. This is ensured by the strict privacy laws in the Cayman Islands.

Question 6

How many days are required to incorporate a company in the Cayman Islands?

Accepted Answer

Unfortunately, there is no specific answer to this question. The total number of days required to incorporate your company varies from just 10 business days to a month or even more in some cases.

The due diligence procedure takes 5 business days in general, depending on how quickly clarifications are received from your end about the members and/or business. After due diligence is complete, the required paperwork will be finalized and submitted to the registry for their review. If no clarifications are raised by the registry, this process typically takes around 5 business days. However, if the registry requests additional clarifications or documentation, the timeline will be extended accordingly.

Please note that delays may occur if the registry is experiencing significant workload, and such delays cannot be expedited by any party. You can also opt for express processing by paying an additional fee to the government, where the applications would be processed within 48 hours of submission.

Question 7

Can I incorporate a company without sharing my information and documents?

Accepted Answer

No, it is not possible to incorporate a company in the Cayman Islands without sharing your information and documents. Compliance with local and international regulations requires a strict due diligence process where all members, including directors, shareholders, ultimate beneficial owners, and members, must provide certified personal documents such as identity and address proof. Intermediaries involved in the incorporation, such as accountants or law firms, must also adhere to this mandatory due diligence process.

Question 8

Are there any license requirements after incorporating a company?

Accepted Answer

It depends on your business activities. For simple structures like holding companies, no additional licenses are required. However, if your business falls under restricted categories, such as banking, insurance, money services, stock trading, forex, or crypto, you will need to obtain the relevant license(s) before commencing operations.

Question 9

Can a company be incorporated entirely online?

Accepted Answer

Yes, a company in the Cayman Islands can be incorporated entirely online, offering a remote and convenient process. There is no need for a physical visit or presence in the Cayman Islands, as everything can be handled through the internet with the help of a licensed registered agent.

Question 10

What are the annual compliance requirements for companies?

Accepted Answer

Adhering to annual compliance requirements for your company in the Cayman Islands is mandatory to have it continue in good standing status.

- Maintaining a registered agent and registered address.
- Renewing company with registry by paying government fee.
- Filing an annual report and an economic substance report.

Question 11

Do companies need to maintain books of accounts and get audited?

Accepted Answer

There are no auditing requirements for companies in the Cayman Islands. However, they are required to maintain proper books of accounts and keep them at the registered office in the Cayman Islands or another location identified with the registry for at least 5 years. There is no requirement to file these accounts with the registry.

Question 12

Should an annual general meeting be conducted?

Accepted Answer

There is no legal requirement to conduct an annual general meeting (AGM) for companies in the Cayman Islands unless specified in the company’s Articles of Association. However, if all members agree, an AGM or shareholder meeting can be held at any time and location, as determined by the company and its internal governing documents.

Question 13

Are there any Economic Substance (ES) requirements for Cayman companies?

Accepted Answer

Yes, Economic Substance (ES) requirements apply to certain companies in the Cayman Islands, depending on their business activities. Cayman companies conducting "relevant activities," such as banking, insurance, fund management, and intellectual property businesses, must meet ES obligations, including demonstrating adequate economic presence in the Cayman Islands. Companies that do not engage in relevant activities are exempt from these requirements but must submit a declaration confirming their status.

Question 14

Are there penalties for late/not filing of annual returns?

Accepted Answer

Yes, failing to file annual returns on time can result in significant penalties in the Cayman Islands. Consequences include financial fines, additional administrative fees, and the potential suspension of the company's ability to conduct certain activities. Persistent non-compliance may lead to the company being struck off the register, loss of legal standing, and potential reputational damage in the jurisdiction.

Question 15

Can I open a bank account for the company in a different country?

Accepted Answer

Yes, you can open a bank account for your Cayman company in any country. Many companies choose to open accounts in the country where they operate or where they have an existing banking relationship, as it often simplifies transactions and financial management.

Question 16

Can I obtain a visa in the Cayman Islands by incorporating a company?

Accepted Answer

Incorporating a company in the Cayman Islands does not automatically grant you a visa or residency. However, you may apply for a work permit or a residency visa if you plan to reside in the Cayman Islands and actively manage the company. Approval of such permits depends on local immigration laws and your business's specific circumstances.

Question 17

Don't you think the costs for incorporating and managing a company are on the higher side?

Accepted Answer

Yes, this is true. The Cayman Islands is considered one of the more expensive jurisdictions for company incorporation and ongoing management. This is primarily due to substantial government fees for incorporation and annual renewals, as well as the costs associated with corporate services and strict compliance requirements to keep companies in good standing.

Question 18

What entity types are best suited for offshore companies in the Cayman Islands?

Accepted Answer

The two primary entity types for offshore companies in the Cayman Islands are Exempted Companies and Limited Liability Companies (LLCs). Both are designed for businesses operating primarily outside the Cayman Islands. However, conducting business within the jurisdiction requires obtaining the necessary licenses. These entity types provide flexibility, privacy, and compliance with international standards, making them ideal for global operations.

Question 19

Are there specific industries that are restricted in the Cayman Islands?

Accepted Answer

Yes, certain industries in the Cayman Islands are restricted or require additional licensing before commencing operations. These include banking, insurance, mutual funds, securities investment, forex trading, and virtual asset businesses like cryptocurrency exchanges.

Why Cayman Islands?

Zero Tax

No Auditing

Privacy

Remote

Reputation

Multiple Company Types

Exempted Company (EC)

Limited Liability Company (LLC)

Foundation Company

Company Incorporation Package

Seamless Online Company Incorporation

Registered Agent and Address

Bank Account Opening Made Easy

Nominee Director and Shareholder Services

Documents Retrieval and Certification

Incorporation is Just the First Step

We Keep Your Company Compliant

Annual Company Renewal Processes

Economic Substance Report (ESR) Filing

Annual Return Filings

Bookkeeping Done Right

Active Registers Maintenance

Corporate Services Under One Roof.

Compliance Reminders

Ready to Stay Compliant? Let Vepapu Handle It for You!

Frequently Asked Questions

F.A.Q.

Can non-residents incorporate a company in the Cayman Islands?

Why is the Cayman Islands considered a popular jurisdiction for offshore companies?

Is the Cayman Islands a tax haven?

Can a company in the Cayman Islands own assets internationally?

Can the details of a company be searched publicly?

How many days are required to incorporate a company in the Cayman Islands?

Can I incorporate a company without sharing my information and documents?

Are there any license requirements after incorporating a company?

Can a company be incorporated entirely online?

What are the annual compliance requirements for companies?

Do companies need to maintain books of accounts and get audited?

Should an annual general meeting be conducted?

Are there any Economic Substance (ES) requirements for Cayman companies?

Are there penalties for late/not filing of annual returns?

Can I open a bank account for the company in a different country?

Can I obtain a visa in the Cayman Islands by incorporating a company?

Don't you think the costs for incorporating and managing a company are on the higher side?

What entity types are best suited for offshore companies in the Cayman Islands?

Are there specific industries that are restricted in the Cayman Islands?

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