The Cayman Islands are one of the most famous tax havens in the world. Unlike most countries, the Cayman Islands have no corporate tax, making it an ideal place for multinational companies to set up subsidiary entities to shield some or all of their income from taxation.

Advantages

• 100% Tax Free (trade, capital, intellectual property, copyrights)
• 100% Capital Movement
• No public record of shareholders of the company (only directors but not shared to the public)
• Nominee services are commonly used
• Simple, easy, worked model
• No filing, accounting or audit requirements
• Financial records must be kept, privately anywhere in the world
• English Language
• Common Law (case by case)
• No exchange control of information

Disadvantages

• Local licensed agent must be used
• Expensive set up costs, but cheap to maintain
• It is commonly known and considered a "tax heaven" 

Characteristics

• Share Capital; minimum USD1 with no maximum share capital requirement (advisable to issue below USD50,000 to pay minimum set up fees). Share classes can be ordinary, preferred, bearer and redeemable
• There is no public record of the shareholder/s of the Company
• Directors of the company are filed to the local registrar but are not public information
• One shareholder and one director are required, corporate or legal of any nationality
• Tax Free (guarantee certificate can be issued by the government for 20 years from the date of creation)
• Can not trade in the Cayman Islands nor in the following industries; banking, insurance, trust services and management, collective investment schemes, fund management, trustee services and management
• Companies Law 1961 (was emended several times since then) and The Companies Law 2007 as amended

Cayman Island companies are commonly used

• For Intellectual Rights Income -m usicians, movie makers, writers, software design companies are receiving their ongoing income in the Cayman Island companies tax free
• For Asset Protection purposes - the Cayman company is used within multi jurisdiction tax groups including International Trusts and Companies or inheritance safekeeping purposes.
• Holding purposes (all tax free profits stay or get repatriated to the shareholders
• Brokerage and Trading Accounts set up for Forex Companies and Investment firms
• Shielding of Assets; only Cayman courts can rule for assets held by a Cayman Company and in Cayman there is no legislation that allows civil forfeitures. Therefore, it is extremely hard to confiscate assets held by a Cayman company.

Set Up pack includes

• Memorandum & Articles of Association
• Certificate of Incorporation
• Share Certificates
• Register of shareholders, directors, registered office, 
• Government license fee
• Minutes of the first meeting appointing the directors

The Islands (Wikipedia)