Cayman Islands incorporation

Introduction

The Cayman Islands is a self-governing British Overseas Territory, comprised of 3 islands. The capital is George Town on Grand Cayman, which is the most populous of the islands. Miami is 1 hour away by air.

Population

The Cayman Islands has a population of around 78,000 (2022). Around 49% of the population is Caymanian, the remaining 51% are immigrants on work permits. Most Caymanians are of mixed African and European ancestry.

Language

The official and spoken language is English.

Currency

Caymanian Dollar (KYD).

Type of Law

Common Law.

Principal corporate legislation

Companies Law.

Type of Company

Exempted Company (most common), when the proposed activities of a company are to be carried out mainly outside of the Cayman Islands.

Powers of Company

An Exempt company has the same powers as a natural person.

Language of Legislation and Corporate Documents

English.

Registered Office

A registered office must be maintained in the Cayman Islands.

Company Name

Name can be in any language using the Latin alphabet, Chinese or Arabic (accompanied by an English translation). It is not required to include the word “Limited” or the abbreviation “Ltd” after the name.

Disclosure of Beneficial Ownership

Cayman companies are required by law to maintain and file beneficial ownership information. Once filed, the information will be stored on the Cayman Islands Government’s centralized beneficial ownership platform. Such information is confidential.

Share Capital

Minimum issued capital is 1 KYD.

Taxation

There are no corporation, capital gains, payroll, property or withholding taxes on any type of company.

License Fees

Payment should be made in January of each year after the year of incorporation. 

Accounting Records

Companies need to keep proper books of account including, where applicable, material underlying documentation including contracts and invoices, for at least five years from the date of preparation.

Economic Substance

Relevant entities must annually notify the Tax Information Authority (TIA) whether any relevant activities have been carried out. For those entities conducting a relevant activity are required to submit an Economic Substance Return and maintain economic substance in the Cayman Islands.

Directors

Minimum of one director. May be a natural person or body corporate, of any nationality and need not be resident in the Cayman Islands.

Company Secretary

Not mandatory, but customary.

Shareholders

Minimum of one shareholder.