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Exempted Company
Incorporation + Compliance

Set Up an Exempted Company in the Cayman Islands

Easily set up your Cayman Islands Exempted Company (EC) with full compliance support. Benefit from tax advantages and a global business-friendly environment.

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Cayman Islands company formation expert
Benefits

Why Choose the Cayman?

The Cayman Islands offer unparalleled offshore benefits while maintaining full compliance with international regulations.

Zero Tax

Zero Tax

No income, capital gains, or dividend taxes.

No Auditing

No Auditing

No mandatory audits for Exempted Companies.

Privacy

Privacy

Shareholders and directors’ identities are confidential.

Remote

Remote

Non-residents can set up & manage their company online.

Reputation

Reputation

Trusted jurisdiction with strong regulations.

Exempt Company

Exempted Company Structures

Multiple structures for your business needs, from asset protection to operational flexibility.

Exempted company certificate of incorporation in the Cayman Islands

Grab the perks of an Exempted company while staying offshore.

Did you know that the Exempted Company is the most popular and flexible entity type in the Cayman Islands?

Offering numerous benefits, from tax advantages to global operational freedom, the Exempted Company is perfect for businesses seeking to stay offshore while enjoying full compliance. The Cayman Islands provide a range of Exempted Company structures designed to meet diverse business needs, whether you're focused on asset protection, investment management, or international expansion.

Holding Company

Used to own shares in other companies, offering asset protection and tax advantages.

Operating Company

Directly manages day-to-day business activities, generating revenue through operations.

SPC

Allows the creation of separate portfolios with legal separation of assets and liabilities.

SPAC

A vehicle used to raise capital via IPO for acquiring or merging with existing businesses.

We would be happy to support you in incorporating your holding company or operating company in the Cayman Islands.

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ELP

A flexible partnership structure commonly used in investment funds and private equity.

SPV

A subsidiary company created to isolate financial risk for specific projects or assets.

Let's Get You Set Up Today.

Our team is here to help you choose the right structure, handle compliance, and make your incorporation process effortless. Reach out to begin your journey.

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Flexible and secure payment options worldwide
Docs & Info

Documents Required

Mandatory documents and information required for your company formation

Individuals

For Individuals:

The following documents are required for every individual member (directors, shareholders, and ultimate beneficial owners)

Proof of Identity (PoI):

Included

A certified true copy (scanned version) of the passport (valid for at least 6 months).

Proof of Address (PoA):

Included

A certified true copy (scanned version) of a bank statement or utility bill (e.g., electricity, gas, water, internet, cable, waste management, and sewage).

It should clearly show the holder's full name along with a physical address. P.O. Box addresses are not accepted.

It must be in English. If not, it must be certified translated into English.

It must be the most recent version and dated within the last 3 months.

Proof of Source of Funds:

Included

Copies of the last two tax returns, a letter of employment, a letter from an accountant certifying your annual income, or financial statements or bank statements from the last 2 years.

Work Experience:

Included

A comprehensive Curriculum Vitae (C.V.), Resumé, or Linkedin profile.

Business Description:

Included

A detailed description of your business activities (products and services, sectors, major operating countries), and business model.

Organization

For Corporations:

The following documents are required for every corporate member (corporate directors, corporate shareholders, and ultimate beneficial owners)

Company Documents:

Please provide us with a certified true copy (scanned version) of the following company documents:

Included

Certificate of Incorporation

Included

Memorandum and Articles of Association / Constitution

Included

Register of Director

Included

Register of Shareholder / UBO

Included

Extract of the company’s details from the Registrar of Companies, which can include any of the following: Business Profile / Certificate of Incumbency / Certificate of Good standing (valid for within 6 months if any).

Company Members:

All members of the corporation, including Directors, Shareholders, Ultimate Beneficial Owners (UBOs), and Contact persons, must provide identity and address proofs as mentioned above.

Trusted Worldwide

Individuals and Businesses Worldwide Of All Sizes Count On

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" Our Cayman incorporation ... was done entirely online. ...took extra time to help me understand economic substance and annual filing requirements. I will recommend it to my network of offshore investors and business owners. "
Antoine
Verified review on Trustpilot
Mate, gotta give props to Vepapu for sortin out my Seychelles incorporation. Proper job they did.. Straight-up pricing, swift process, and all done online. Cheers!
T.R.P.
Verified review on ProductHunt
My company formation experience was just smooth and quick. Vepapu folks did an amazing job. They are extremely professional with their work and extremely friendly and understanding in their behaviour.
Chen
Verified review on Trustpilot
Made my journey really smooth. I recently incorporated in Caymans and Vepapu’s clear approach and their team’s eagerness to help me really made me very impressed.
Martin Luther
Product Designer at Uber.INC
Kevin
Verified review on Trustpilot
My experience was great. Got my Caymanian company incorporated without any hassle. They are the absolute professionals and experts in this field.
Martin Luther
Product Designer at Uber.INC
Martin Luther
Product Designer at Uber.INC
ACP Guy
Verified review on Trustpilot
Martin Luther
Product Designer at Uber.INC
Martin Luther
Product Designer at Uber.INC
Cayman Islands flag

Cayman Islands

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Seychelles

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Hong Kong

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Singapore

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Mauritius

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British Virgin Islands

Helping Businesses Expand to 45+ Countries

PROCESS

Incorporate in 5 Easy Steps

From Paperwork to Approval: Making Company Formation Fast and Straightforward

Step 1

Get Started Now

Explore our website and discover the wide range of services we offer for Exempted Company incorporation in the Cayman Islands. Our comprehensive service descriptions and FAQ section provide answers to common queries, giving you a clear understanding of the process.

Click the "Get Started" button below and fill out a short, simple form to share your business requirements with us.

Once we receive your information, our dedicated team will reach out to discuss the next steps and guide you through the entire process, ensuring you know exactly what to expect.

Get Started

Pricing

Documents

Documents and Due-Diligence

Kickstart your company's incorporation process by sharing the requested documents, as listed here. This enables us to perform the mandatory KYC (Know-Your-Customer) and due diligence processes to comply with the local and international laws.

During this process, our team might request you additional information, documents, or clarification, as needed, about the business and/or the members themselves.

Don’t worry if the paperwork feels overwhelming. Your dedicated manager from Vepapu will personally assist you in gathering and submitting the documents in the correct format to avoid any delays.

Step 2
Step 3

Paperwork and Liaison

Our team will now have the required information and documentation in hand to proceed with completing the required paperwork involved in incorporating your company.

We will complete one or multiple application forms as required and obtain your signatures. We will coordinate with the registry to submit them for their official approval.

We will do timely follow-ups with the registry and actively work with them if they require any further clarification or documentation before their approval.

Bank Account Opening Assistance

If you opt for our bank account opening assistance service, we will use our well-built banking relationships to introduce you to the traditional reputed brick-and-mortar banks as well as digital banking providers situated worldwide.

Our team will assist you throughout the account opening process, from providing the necessary documentation to offering guidance on key steps and best practices. With Vepapu, you can be confident that your banking needs are managed with care and professionalism.

Step 4
Step 5

Ongoing Compliance

We will take care of your company's timely annual renewal along with the associated report preparations and filings with the registry. Economic Substance Report (ESR) filing and Financial Report (FR) filing are streamlined with Vepapu. We will timely inform you of the upcoming compliance deadlines for your prompt action.

Also, our team of experts will actively monitor the regulatory changes in the Cayman Islands and accordingly guide you in the proper path to keep your company compliant.

End

FAQ

Frequently Asked Questions

Find answers to generally asked questions on exempted company formation in the Cayman Islands

F.A.Q.

General
Incorporation
Compliance
Others

Are there any taxes for an exempted company?

Generally, no. Exempted companies in the Cayman Islands are not subject to taxes such as income tax, capital gains tax, or withholding tax. Additionally, shareholders are exempt from estate tax or inheritance tax on their shares and dividends.

Can an exempted company hold intellectual property rights?

Yes, an exempted company in the Cayman Islands can hold intellectual property rights, including patents, trademarks, and copyrights. Many businesses use exempted companies to manage and protect their intellectual property globally, taking advantage of the jurisdiction's strong privacy laws and tax neutrality.

Can an exempted company conduct business within the Cayman Islands?

An exempted company is primarily designed for conducting business outside the Cayman Islands. It may not trade locally with individuals or entities unless it obtains a specific license under applicable laws. Additionally, exempted companies cannot own land in the Cayman Islands without the consent of the Financial Secretary and are prohibited from making public invitations for shares or debentures within the jurisdiction. However, they are allowed to conclude contracts and exercise powers in the Cayman Islands that are necessary for carrying out their business outside the country.

Who typically uses exempted companies for their business?

Exempted companies are commonly used by international businesses, investment funds, and holding companies. They are favored by entities seeking tax efficiency, privacy, and a flexible structure for managing assets, intellectual property, or global operations. Startups, joint ventures, and businesses focused on international trade also frequently incorporate exempted companies.

Is there flexibility in customizing the Articles of Association?

Yes, the Articles of Association for an exempted company in the Cayman Islands can be customized to meet your business’s specific needs. While a standard template is often used for incorporation, amendments can be made to reflect unique governance structures, shareholder rights, or operational requirements, as long as they comply with Cayman Islands laws. Do note that you would be required to get your custom Articles of Association reviewed by a registered legal practitioner in the Cayman Islands to ensure that it adheres to the local regulations.

Can an exempted company issue shares in multiple currencies?

Yes, an exempted company in the Cayman Islands can issue shares in multiple currencies. This flexibility makes it an attractive option for international businesses, allowing them to cater to global investors and manage currency risks effectively.

Can I add or remove directors and transfer or issue shares after the company is incorporated?

Yes, you can make changes to your company’s directorship structure, including adding or removing directors, at any time. Additionally, the company can issue new shares, alter its share capital, and transfer shares to another party. These changes require informing the Cayman Islands registry through the appropriate filings within 30 days of such changes and payment of a stipulated government fee.

What is the recommended share capital size?

There is no minimum requirement for authorised, issued, or paid-up share capital for exempted companies in the Cayman Islands. However, most companies opt for the standard authorised share capital of US$50,000. This is because the government incorporation and annual renewal fees are lowest for companies with authorised share capital up to US$50,000 or its equivalent. It is important to note that at least one share must be issued at all times.

Do exempted companies need to file annual returns?

Yes, exempted companies must file annual returns and pay the government renewal fee to the Registrar of Companies every year before 31st January. This filing serves as a declaration that the company has conducted its business outside the Cayman Islands, complied with applicable requirements, and reported any changes to directors, shareholders, share capital, or other structures within 30 days of such changes. All companies must file an Economic Substance Notification (ESN) by 31st January every year. Additionally, if a company falls under the ES regulations, it must file an Economic Substance Report (ESR) within 12 months of the financial year end.

Are there specific compliance obligations for exempted companies with subsidiaries or assets outside the Cayman Islands?

Exempted companies with subsidiaries or assets outside the Cayman Islands must ensure proper record-keeping and compliance with the laws of the jurisdictions where the assets or subsidiaries are located. Additionally, they must maintain accurate registers and adhere to Cayman Islands filing requirements to reflect any structural or ownership changes.

What statutory registers must be maintained for an Exempted Company?

An Exempted Company in the Cayman Islands is required to maintain specific statutory registers at its registered office address in the Cayman Islands. These include:

  • Register of Directors and Officers: Details the company's directors and officers, including their names, roles, and appointment dates.
  • Register of Shareholders: Records the company's shareholders and their respective shareholdings.
  • Register of Beneficial Owners: Tracks individuals with significant ownership or control in compliance with regulatory requirements.
  • Register of Mortgages and Charges: Lists any mortgages, charges, or security interests over the company's assets.

Can an exempted company issue bearer shares?

No, exempted companies in the Cayman Islands are prohibited from issuing bearer shares. Bearer shares are a type of share that does not record the owner's name in the company's register and can be transferred by physically handing over the share certificate. Due to their anonymity, bearer shares are often associated with risks like money laundering and lack of transparency. To align with international compliance standards, the Cayman Islands restricts their use to ensure proper record-keeping and ownership transparency.

Are there any restrictions on the number of subsidiaries an exempted company can own?

No, there are no restrictions on the number of subsidiaries an exempted company can own. This flexibility allows exempted companies to manage multiple entities or assets across different jurisdictions, making them ideal for global business operations and asset holding.

How can I protect my exempted company from legal risks?

Protecting an exempted company from legal risks involves maintaining proper compliance, including timely filing of returns and reports, keeping accurate records, and adhering to local and international regulations. Additionally, robust governance, appropriate insurance coverage, and consulting with legal professionals can help safeguard the company against potential liabilities.

Can an Exempted Company operate as a single-member entity?

Yes, an Exempted Company in the Cayman Islands can operate as a single-member entity. The structure allows for one shareholder, and the same individual can also serve as the sole director, providing flexibility for small businesses and single-owner setups. The sole member can be from any part of the world without any shareholding limits.

How is a Cayman exempted company different from a private limited company or a corporation?

A Cayman exempted company differs from a private limited company or corporation primarily in its purpose and restrictions. Exempted companies are designed for international operations and cannot conduct business locally in the Cayman Islands without special permissions. They also offer greater privacy, no local tax obligations, and flexible structuring options compared to many other jurisdictions' private limited companies or corporations.

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