A Hollywood film without Cayman Islands offshore company is not a Hollywood film. Secret agents, mafia films, million dollar businesses- all this is just an unnecessary decoration, in reality Cayman Islands is a tax haven with it’s strong advantages and disadvantages, that are highly recommended to study, before incorporating there.
Basic Information about Caymans dream:
- Cayman Islands is an archipelago located in the western part of the Caribbean
- area is only 260 square kilometers and a total population of just above 50 000 people
- overseas territory of Great Britain, with it‘s official head of state Queen Elizabeth II., Which is represented by the local governor.
- official language is English
Why Cayman Islands are so popular among offshore jurisdictions?
- First of all, Legal system. Since it is a territory of Great Britain, Cayman Islands legal system based on English common law, that simplifies everything, especially if you are used to British laws. Plus your employees, accountants won’t have difficulties with language
- In terms of incorporation, only one shareholder and one director are required, and neither one of them have to be a resident of the Cayman Islands
- establishment is super quick, within 24 hours, and that companies can apply for a 20-year exemption from the tax. Win.win.win. Cayman islands equalls saving money!
- Also, one of the major advantages is anonymity. Register of companies is not publicly accessible. Nobody will know,that you are the owner of the company, what is your capital,income. Ex wives, Business partners, Goverment….nobody.
- Concerning bearer shares, they are allowed, but in practice, they are not supported and must be held in an authorized depository.
What can stop you from incorporating in Cayman islands?
We can lie and tell you, that it is the perfect tax haven , but we would prefer you to choose the right jurisdiction for your business profit and that is why we should warn you, that there are few disadvantages in establishment of Cayman Islands, that can occure some problems in your business!
- the high annual maintenance fee to the Government, which is significantly higher (minimum $ 1,100) than those offered by other offshore centers in the Caribbean (Incorporate in Belize, Seychelles, BVI)
- companies must keep accounts, which entails additional costs
- Another reason is the growing cooperation with other states and concluding agreements on tax information exchange, which, among others, signed with the Czech Republic
- In 2001, the Cayman Islands have adopted the new Due Diligence ("KYC"), according to a newly created company must provide information on the business activities, the beneficial ownership etc., thereby preventing that their jurisdictions are not used for criminal purposes
Although an offshore company based in the Cayman Islands has some drawbacks, it is still a stable jurisdiction with developed legal system, which even today has much to offer. This is an important financial center in the Caribbean, which has represented more than 550 banks and trust companies. There are represented all major accounting firms large and high-quality legal office. So if you approach this subject seriously and wise, Cayman Island can become a starting point in your money savements and business anonymity!