fbpx

Important Note of Starting Business in Cayman Islands as an Exempted Company

Starting Business in Cayman Islands | Foreign Exchange Control

As such there are no stringent control laws in the Cayman Islands by which anyone (residents or non-residents) can move the company assets inside or outside of the island by starting business in Cayman Islands . The amount kept in the bank can be in any currency available in the bank. The amount of company’s share capital can also be showed in currency as per the business requirements.

Starting Business in Cayman Islands | Type of Operation

Any foreign company wants starting business in Cayman Islands can start their offshore business by getting the required approvals to work, resident directors, executive officers and employees. It is recommended to choose someone with strong experience and expertise in your country to advice about starting business in Cayman Islands and ownership of equity

Starting Business in Cayman Islands | Banks and Trust Companies

The financial business institutions like the banks, trusts, etc. are part of the Cayman Islands’ governed and regulated segment. There are several foreign banks and trust firms which has established its branches and sister concerns in the Cayman Islands for managing the euro-dollar transactions as well as offer traditional banking facilities to the foreign customers. In addition to it, businesses planning to establish private banks can also start their operations but for specific objects only. Such kinds of business transactions are closely monitored by the government of Cayman Islands. For such business setups we recommend them to the Client Memo titled “Cayman Islands – Banks and Trust Companies” for further information.

Insurance Companies

The financial institutions like the insurance and reinsurance companies fall under the regulated business segments in the Cayman Islands as per the insurance law passed in 2010. There are several rules and regulations defined as per the law defined in 2010. There are many insurance companies in Cayman Islands which are also known as the captive insurance company. Most of these companies are foreign companies established by a group of individuals with common interest like doctors for offering the insurance cover to parents and/or group. There are several benefits of starting business in Cayman Islands as an insurance company;

  • insuring risks which are commonly not accepted by the other insurance companies in the market.
  • Reducing the premium levels by managing the membership of specific group or activities of the parent.
  • Creating a profit making foreign branch perfect for saving tax
  • Gaining direct reach to the reinsurance business segment

 

For more details regarding the insurance companies, please refer our page Cayman Islands

– Insurance & Reinsurance business

Trading companies

Any export company in the Cayman Island has to take orders from the customers from the foreign market and manufacture goods from the local market. The profit generated from the sales and purchase will be accumulated in the Cayman Islands and it can be further used for business expansion or larger investments. Companies which are established for trading have huge benefits for purchasing and selling goods.

Investment Companies

The mutual fund market in Cayman Islands are much more lucrative for the exempted companies. The companies can conveniently operate and freely issue the shares that are redeemable from the profits or capital as well as it can also repurchase its own shares or of the LLCs. For individuals who are interested in starting business in Cayman Islands it is important that they are aware of the rules and regulations for various automatic exchange of information formats. For e.g., the FATCA and CRS follow the regime of AEOI. For more information regarding the AEOI of Cayman Islands, please refer our page – AEOI Obligations & Guide for The Financial Institutions.

Shipping Companies

For companies which are interested in starting business in Cayman Islands in shipping, it can own and operate the business only with the ships which are actually registered in the island. It is not necessary for the ships to visit Cayman Island for the registration as the survey before the registration can be done from any authorized port surveyor in the world. There are several benefits of registering ships for Cayman Islands:

  1. The ships which are registered in Cayman Island are considered as part of the British ships;
  2. The taxes on the tonnage in Cayman Island is pretty minimal;
  3. The British ships are considered as one of the world’s best marine registries;
  4. the ships may be registered under construction to facilitate the grant of security by way of statutory mortgage at an early stage;
  5. Stamp duties are not levied on the mortgage registration

 

For more information regarding the shipping companies, please refer our page Cayman Islands – Ships Registration.

Foreign Companies

If a foreign company is interested in starting business in Cayman Islands then it has to be registered with the department of company registrar as one of the foreign companies and it should have a local address of business as well as a local agent who lives in Cayman Islands. If any company needs starting business in Cayman Islands then AbroadBiz will be at your service to support you in every step to register the company and provide you a local agent.

Log in with your credentials

Forgot your details?