The Cayman Islands is one of the most important offshore destinations in the world and, among the types of companies which can be set up here, the exempted company is one of the most important. This is because it offers many advantages.
The exempted company in the Cayman Islands is one of the preferred choices of foreign investors because of the simple and fast registration procedure, but it also offers various tax advantages. Below, we explore why opening an exempted company in the Cayman Islands is so attractive.
Simple registration requirements for a Cayman exempted company
Opening a business in the Cayman Islands is usually simple, however, for the exempted company these requirements are even simpler. The local legislation requires one shareholder and one director who can be the same person for setting up this business form. Additionally, there are no residency requirements for the shareholders or directors. As a matter of fact, full foreign ownership is what attracts so many overseas entrepreneurs to the Cayman Islands.
Once the company is registered, privacy is insured as the names of the shareholders and directors are not publicly displayed by the Companies House. It is also good to know that the Cayman exempted company has the status of a domestic company which allows the shareholders to make changes in the company through a simple notification filed with the Trade Register.
Exempted companies in the Cayman Islands are not required to hold annual general meetings, but if they are held, they can be organized in any other country.
Tax advantages of exempted companies
One of the most important benefits of opening an exempted company in the Cayman Islands is that, once registered, it will not be subject to any corporate, capital gains or inheritance taxes. Also, the tax authorities here do not impose any specific accounting or auditing regulations which simplify the accounting of such a company a lot.
The Cayman exempted company is suitable for holding or trading purposes, so most foreign investors seeking to complete activities through such a company will find the right use for it. When adding all the advantages mentioned above to the fact that the liability of the shareholders is limited to their capital contribution to the company, the exempted company becomes one of the best ways of starting a business in the Caymans.