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 -musicians, 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