|
Over the past three decades,
the Cayman Islands have matured into one of the world’s
largest international financial centers. The Cayman Islands
are located in the Caribbean 460 miles south of Miami, Florida.
The Cayman Islands are a British Overseas Territory and
derives all of its security and political stability through
its connection with Great Britain. Cayman’s legal system
is British common law modified by local legislation. The
government is headed by a governor, who is appointed by
the Crown of England. Cayman’s official language is English
and has a population of approximately 31,200.
The Cayman Islands make up
one of world’s largest international financial centers,
the second largest captive insurance domiciles, and is a
leader in offshore mutual funds. There are over 1900 mutual
funds and nearly 600 banks and trust companies. Forty-five
of the world’s fifty largest banks have subsidiaries or
branches in the Cayman Islands. Cayman Islands Stock Exchange
(the "CSX") is one of the world’s fastest growing
international stock exchanges. Cayman’s success as a financial
center is built upon its high caliber of professionals,
political and social stability, excellent communications,
progressive legislation, and sound regulatory regime.
There are six types of companies
which can be registered in the Cayman Islands. Depending
on the type of activities and whether the business will
take place within the Islands will determine which type
of company should be utilized. If you are interested in
forming a company where the activities of a company will
be carried out mainly outside the Cayman Islands, then an
exempt company should be considered. An exempt company can
be used for investment holding within Cayman as well as
outside the area. The features of an exempt company are
as follows:
Taxation
Shareholders
Directors
Reporting
Requirements
Restrictions On Name And Activity
Local
Requirements
Secrecy
Tax
Treaties
Professional
Services
Taxation
There are no taxes in the Cayman Islands on income, capital
gains, profits, dividends, investments or capital transfers
on any type of company. The company receives a twenty-year
guarantee against taxation from the Cayman Islands Government,
which may be extended to thirty years upon application.
Shareholders
An exempt company can be formed with only one shareholder
and with no minimum capitalization requirements. Bearer
or registered shares are permitted and shares may be issued
with nominal or no par value. Details of the shareholders
are not maintained on public record.
Directors
A minimum of one director is required and corporate directors
are permitted. Details of the directors must be reported
to the company registrar but this information is not available
to the public. Directors do not have to be a shareholder
or resident in the Cayman Islands, however, one statutory
meeting of the directors must be held within the Islands
every year. This may be done more conveniently by the appointment
of proxies.
Reporting
Requirements
There are no requirements to file financial reports. However,
an information return must be submitted to the Registrar
requiring a declaration that: (1) no changes, other than
those notified to the Registrar, have been made in the Memorandum
of Association, (2) the provisions of the companies law
have been observed, and (3) the company’s operations have
been mainly outside of the Cayman Islands.
Restrictions On Name And Activity
There are restrictions on the naming of companies. The name
of a new company must not resemble a name of an existing
company. The following words, and their associated activities,
cannot be used: Assurance, Bank, Trust, Insurance, Chartered,
Company Management, Mutual Fund, or Chamber of Commerce,
unless the necessary licenses under relevant laws have been
obtained.
Local
Requirements
The local company law requires that a company maintain
a registered office address within the Cayman Islands and
must also appoint a Cayman resident as registered agent.
Secrecy
The Confidential Relationship (Preservation) Law makes it
a criminal offense to divulge confidential information or
to willfully obtain or attempt to obtain confidential information
relating to a Cayman Island company. The law imposes a maximum
penalty of a fine and/or a term of imprisonment of up to
two years.
Tax
Treaties
The Cayman Islands have no double taxation treaties with
any other part of the world but have undertaken to assist
foreign governments by giving them information where a Cayman
Island company has been used or involved in activities,
which are mutually considered as criminal.
Professional
Services
Professional standards are high in the Cayman Islands. All
major international accounting firms are represented in
the Caymans and there are a number of local law firms specializing
in offshore financial matters. Top banks and leading offshore
mutual funds are domiciled in the Cayman Islands.
(Back To Top)
GUARDIAN
FINANCIAL SERVICES, INC.
6621 E. Pacific Coast Highway Suite 260
Long Beach, Ca 90803
(562) 431.1140- Fax: (562)684.4634
info@guardianfinance.com
|
