offshore company formation tax havens Home

Cayman Islands Offshore Company Formation

The Cayman Islands are located in the Caribbean and is perhaps one of the oldest offshore tax havens in that part of the world. The Cayman Islands incorporates offshore companies and offers offshore services such as offshore banking, offshore insurance and investment fund management. It is estimated that by the year 2008 the offshore jurisdiction of the Cayman Islands had registered about 80,000 offshore companies. Offshore business companies which can be formed in the Cayman Islands include Cayman Exempt Company, Cayman Limited Duration Company, foreign companies and Ordinary nonresident companies. These companies are simply referred to as offshore corporations.

Offshore companies in the tax haven of the Cayman Islands are formed for various reasons. Probably the most well known reason for offshore company formation is the tax savings which they present. Company formation offshore is done for business purpose too since offshore companies can be used to engage in international trading. Offshore jurisdictions have been known to provide asset protection and the Cayman Islands provide quality asset protection and it is for this reason that many offshore clients place their assets and capital into Cayman Islands offshore corporations.

Offshore business formation in the Cayman Islands is not very complicated. In order to form an offshore company in the Cayman Islands a registered agent who specializes in incorporating offshore companies must be employed. The registered agents who help clients with the formation of offshore companies in tax haven Cayman are professional such as lawyers, experts in international finance and offshore service providers.

To form an offshore company a Memorandum of Association and Articles of Association must be prepared which has to be filed with the Registrar of Companies. The documents must be accompanies with a signed document prepared by an attorney of law stating that the Cayman Island company will only carry its activities outside of the territory of the Cayman Islands. The Memorandum of Articles must include the following information:

  • The name of the proposed company
  • The name and address of the registered agent
  • The registered address of the offshore corporation
  • The name and address of the directors of the corporation
  • The authorized share capital the offshore corporation will register with
  • State of the company is limited by shares or guarantee or by both

The types of shares to be issued by the company:

  • The rights, powers, privileges and restrictions of each class of share issued
  • The purpose for forming the company
  • The by-laws of the company

The tax haven of the Cayman Islands offers many advantages to the persons who are interested in the formation of offshore corporations there. As a tax haven offshore companies formed in the Cayman will pay no taxes on income which is derived from outside the jurisdiction. The tax free status of Cayman Island offshore companies is guaranteed in the Cayman Islands Company Laws. The legislation states that offshore companies in the Cayman Islands are guaranteed twenty (20) years which begins form the day of company formation. Additional tax benefits for offshore companies in the tax haven of the Cayman Island includes no capital gains tax, income tax, corporate tax, estate tax, gift tax, inheritance tax among others. Offshore corporations must pay an annual license fee to the government of the Cayman Islands.

The Cayman Islands as a tax haven has a commitment to offshore clients and investors in the offshore jurisdiction. According to The Cayman Island Confidential Relationship law it is a criminal offense for anybody to give out information regarding an offshore company formed in the jurisdiction. Information concerning companies in the offshore jurisdiction is considered to be private.

The formation of an offshore company in the Cayman Islands requires only one (1) director. The director of Cayman Islands offshore companies can be of any nationality and furthermore can be an individual or corporation. The number of shareholders need to form an offshore corporation in the offshore jurisdiction is also one (1). The director and shareholder may be the same person. Offshore or exempt companies in the tax haven of the Cayman Islands can be assured that privacy will be afforded to such corporations. The shareholders and directors registry of offshore companies formed in the Cayman Islands is not filed as public information therefore the public has no way of knowing who the rightful owners of Cayman Islands offshore corporations are. Cayman Islands offshore companies can also be formed using nominee shareholders and directors in an effort to provide additional privacy for the corporation. Nominee services are part of the service package offered by many registered agents and offshore service providers in the tax haven.

Offshore companies formed in the Cayman Islands have no obligation to prepare their annual financial statements and accounts for presentation or inspection by any government authority in the tax haven. An offshore company in the Cayman Islands has very little reporting to do. Offshore companies in the Cayman Islands can hold their shareholder and directors meeting ant any time and location convenient to all the persons involved. Meetings can be held via telephone to tele conferences.

The Cayman Islands is an unquestionable tax haven for offshore company registration. The territory has very modern and strict legislation in place to support its offshore sector and present a favorable environment for investors. Registration of offshore companies in the offshore jurisdiction takes a matter of hours thanks to very efficient professional who work in the offshore sector. Registration of offshore companies in the Cayman Islands can be completed via the internet.

The formation of an offshore company in the tax haven of the Cayman Islands has many advantages. The Cayman Islands had for decades provided offshore services in a well organized and competent manner. The tax haven provides investors with cost effective corporations which eventually helps to reduce taxes in a legal manner. Companies formed and registered in the offshore jurisdiction of the Cayman Islands are recognized around the globe as excellent business and trading companies.