CAYMAN ISLANDS EXEMPTED COMPANY
GENERAL INFORMATION
The Cayman Islands are a British colony
situated in the Caribbean sea approximately 500 miles South of Miami,
Florida, with a population of approximately 50,000 people of mixed
origin. The Islands enjoy sophisticated legal, accounting and banking
services and derive political stability by virtue of their connection
with Britain. The legal system is British and the government is
headed by a Governor appointed by the Crown who presides over a
Government made up of twelve locally elected members and three senior
civil servants who hold ex-officio office.
There is no exchange control and no restrictions on the movement
of funds to or from the Islands.
The Confidential Relationships (Preservations) Law 1976 makes it
a criminal offence for any person to divulge confidential information
to a third party and 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. Tax offences would not be covered
by this treaty so no information would be revealed where allegations
of tax offences are made.
The Companies (Amendment) custody of Bearer Shares Law 2001 provides
for a licensed Custodian in the Cayman Islands to hold bearer shares
to th order of the beneficial owner.
TYPES OF CAYMAN COMPANIES
The registration and regulation of companies are governed by the
Companies Law 1998. There are six types of companies available,
which include resident, non-resident, exempt, segregated portfolio,
limited duration and foreign companies. Please
click here for a brief introduction of the types of companies/entities
available in Cayman Islands.
The exempt company is the most common type of company used and
what follows is for exempted company.
The activities of an exempt company shall be conducted outside
the Cayman Islands, though if may hold investments both within and
outside the islands.
FEATURES OF CAYMAN EXEMPTED COMPANY
A Cayman Island exempt company has the following characteristics:
Company Name
Companies can be incorporated with English and/or Chinese names.
When a company is incorporated with a Chinese name, the incorporation
documents and the Certificate of Incorporation shall contain a translation
of the name in English.
The following words cannot be used to name a Cayman company: Assurance,
Bank, Trust, Insurance, Chartered, Company Management, Mutual Fund,
or Chamber of Commerce, unless the necessary licenses under relevant
laws have been obtained.
Memorandum and Articles of Association
The Memorandum & Articles of Association (¨M&A〃)
is equivalent to the constitution of a Company in some jurisdictions.
The M&A can only be written in English. Kaizen Corporate Services
Limited can provide standard or tailor-made M&A.
Capital and Shareholders
The standard authorized capital of a company is USD50,000 divided
into 50,000 shares of USD1.00 each. There is no minimum capitalization
requirement. Capital can be expressed in any currency.
An exempt company requires a minimum of one shareholder, who can
be an individual or a corporation. 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.
There is no residence requirement for the shareholders.
The register of members (shareholders) of the company must be kept
in the registered office in Cayman. The register is not a public
record and is only available for inspection by persons authorized
by the directors of the company.
Company meeting can be held at any place inside or outside Cayman.
No annual general meeting is required.
Directors
A minimum of one director is required and corporate director is
permitted. Details of the directors must be filed with the Company
Registrar but such information is considered highly confidential,
not being available to the public. Directors do not have to be shareholders
or residents in the Cayman Islands, however, annual meeting of the
directors must be held within the Islands every year.
Company Secretary
It is not mandatory for the company to appoint a company secretary,
but since the Companies Law of Cayman is more stringent than many
other jurisdictions, we recommend that our firm be appointed as
the Company Secretary to ensure that the company complies with all
statutory requirements.
Registered Agent and Registered Office
An Cayman exempt company must at all times have a registered office
located within Cayman, which is normally provided by a Cayman management
company, law firm, accountancy practice or trust company. An Cayman
exempt company can resolve to change the location of the registered
office at any time.
Though there is no requirement to engage a registered agent in
Cayman, in practice, since all exempt company must have a registered
office in Cayman, the service providers providing the registered
office will also provide company management services. These services
providers are regulated and licensed under the Companies Management
Law 1999, which is administrated by the Cayman Islands Monetary
Authority. The Law requires the Management company to carry insurance
to cover any losses arising from claims of negligence, breach of
duty or dishonesty.
Annual Reporting
There is no requirement to file accounts with the registrar. However,
an annual return must be filed. The return takes the form of a simple
declaration.
Timescale
Incorporation time is in the order of 3 to 4 weeks, including delivery
time. We do not keep ready-made companies in stock.
Taxation
There are no taxes in the Cayman Islands on income, capital gains,
profits, dividends, investments or capital transfers. The company
receives a twenty year guarantee against taxation from the Cayman
Islands Government, which may be extended to thirty years on application.
Secrecy
The Confidential Relationship (Preservation) Law 1976 makes it a
criminal offence 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 of CI$5,000 and/or a term of imprisonment of up to 2 years.
REGISTRATION AND MAINTENANCE FEES
Registration Fees
Our registration fee for a Cayman exempted company with a share
capital less than US$50,000 around US$3,200. The fee covers current
year licence fee, current year registered agent fee and current
year charge for the provision of registered office.
Documents Required for Incorporation
Please click here for detailed list of
documents and information required.
Annual Maintenance Fee
Annual maintenance fee for a Cayman exempted company is around USD2,300
which covers annual licence fee, annual registered agent fee and
annual registered office fee.
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