Profile

The Cayman Islands are a very popular choice for incorporating businesses of many types. This is substantially driven by its convenient taxation and its innovation in offering structures with flexibility and attractive features. Its reputation is further enhanced by its political and legal systems, its use of the US Dollar and the English language. Through a combination of these factors Cayman has become one of the most popular jurisdictions worldwide for incorporation of new entities.

Cayman has shown innovation by setting up structures which are innovative and seek to address newer usage cases, such as the Cayman Foundation which is a good fit for newly-emerging Fintech applications.

Political

The political regime is considered to be stable and pro-business. It is economically stable, all of which adds to its reputation as a safe incorporation location.

Costs

Cayman is a more expensive location in which to incorporate than some of its closer competitors such as the BVI. Renewal fees charged by the government are about twice those in the BVI, although the sums involved are relatively small.

Tax status

The Cayman tax regime is Zero-rated for corporation tax. There are no capital gains, inheritance or wealth taxes.

Legal

Its reputation as a world financial centre means that it has access to skilled counsel and financial experts able to advise and guide people building structures here. The language of business is English and trade is typically US Dollar-based, although there is no restriction on the currencies that Cayman entities use.

Privacy

The level of personal disclosure is low, offering good privacy for company shareholders, and directors. There is disclosure to authorities in order to meet international standards, however the disclosure is not public-facing.

Reporting

The burden of company administration and reporting is kept low for smaller organisations, many structures require just the most basic of annual renewals. The reporting regime for larger scale structures particularly in retail finance is appropriately more rigorous.

KYC and AML Regulations

The Cayman jurisdiction is compliant with international protocols on anti-money laundering. Good reputation is important to the region and KYC and AML applies here.

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