Cayman Company Registration

In fact, not only our enterprises like to set up subsidiaries in the Cayman Islands, almost all the enterprises in the world have branches in the Cayman Islands. 49 of the top 50 banks in the world have branches in the Cayman Islands, and according to incomplete statistics, more than 50,000 large companies have registered in the Cayman Islands, more than 600 credit institutions such as banks and trusts, and more than 500 insurance companies have set up branches here. More than 500 insurance companies have set up branches here.

The Cayman Islands is the fourth largest offshore financial center in the world and a famous “tax haven” for business organizations! Many companies are attracted to incorporate in the Cayman Islands because of the following advantages of incorporating a Caymanian company:

1、Convenient tax planning

In the Cayman Islands, there are no direct taxes levied by the government and corporate profits, capital gains and personal income are not subject to tax. Profits derived from the company’s operations outside of the Cayman Islands are not subject to profits tax, investment income and profits tax, and the company is guaranteed to be exempt from any tax for 20 years after incorporation.

2、Favorable for overseas listing

Many of the Cayman Islands’ policies are more “appropriate” and bring great convenience to investors while meeting regulatory requirements, and have a higher international recognition. The Companies Law promulgated in 1961 is a departure from the old UK Companies Law, and its policies are more suitable for companies to list on the stock exchanges in Hong Kong, Singapore and the US, making it easier to gain the trust of overseas investors.

3. Confidential business information

Cayman has a confidentiality-friendly policy for international business companies, with minimal disclosure of information that would be criminally punishable.

4、Favorable to international trade

You can circumvent some national trade protection, and the company name is also free.

5、No foreign exchange control

There are no foreign exchange controls in Cayman, and the transfer of funds from international trading companies registered here is not subject to control. After incorporating a company in Cayman, you can open an offshore account and flexibly deploy foreign exchange funds.

6、No need to audit tax return

No audited statements of accounts or annual audits are required, bearer shares are permitted, and no local activity records are required.

7、Easy company registration

One person can appoint a professional registration agent to complete the registration of the company, without the need to go to the registered office in person.

8、Convenient company management

An annual government management fee is paid and no general meeting or board meeting is required.

A local company, also known as a resident company, has at least one shareholder and at least one director. The company is required to hold an annual general meeting once a year and is required to file an annual return with the Registrar of Companies detailing the data of the shareholders of the company. The register of shareholders and the register of members must be kept at the registered office of the company in the Cayman Islands and be open to public inspection.

▶ Non-local companies

A non-domiciled company is, by definition, a company that is not resident in the Cayman Islands. A non-domestic company is required to apply to the Cayman Islands Finance Department for a certificate of non-domicile status and the Financial Secretary is required to satisfy the following conditions for the issuance of a certificate of non-domicile status:

1. The company does not operate in the Cayman Islands.

2. The Company has no plans to operate in the Cayman Islands.

At the same time, non-domestic companies can be converted to exempted companies after filing an application.

▶Exempted Companies

An exempted company requires at least one director and may not carry on business within the Cayman Islands unless such business directly contributes to the company’s offshore operations. Furthermore, an exempted company cannot extend an invitation to the people of the Cayman Islands to subscribe for its shares or debentures. It cannot hold land in the Cayman Islands except with the approval of the Financial Secretary of the Cayman Islands. While there are many restrictions on exempted companies in the Cayman Islands, the benefits are clear:

1. exempted companies are not required to submit/report details of their shareholders to the Cayman Islands Companies Registry;

2. the register of shareholders/members of the exempted company is not required to be open to public inspection;

3. exempting the company from holding an annual general meeting;

4. An exempted company may apply to the Cayman Islands government and obtain a letter of guarantee that the company will not be subject to any charges. The initial application for a letter of guarantee is valid for twenty years and can be renewed before its expiration.
 5、Exempted companies can apply for deregistration and can transfer their registration status to other countries.

6. An exempted company can be registered as a limited term company. A limited term company requires at least two shareholders and is valid for a maximum of 30 years.

▶Limited-term companies

A limited term company is broadly similar to a LIMITED LIABILITY COMPANY (LLC) in the United States. LLCs combine the benefits of limited liability with the ease of administration of an LLC. The same provisions of the Companies Ordinance that govern exempted companies apply to LLCs, except for the following:

1、The Cayman Term Company must end with (LIMITED DURATION COMPANY) or (LDC) as the company name;

2. Cayman limited term companies must have at least two shareholders;

3. The Cayman Limited Term Company must restrict the internal transfer of shares or interests by means of its articles of incorporation, and the transfer of shares or interests must be approved by all shareholders.

4. Cayman limited term companies must have a term of not more than 30 years in the form of articles of incorporation. It is also possible to convert a limited term company to a non-limited term company through the corresponding application process. Similarly, the articles of association need to be changed to make the company valid for more than 30 years.

▶Overseas companies

1、Definition of overseas company

A foreign company is a company incorporated in another country or territory outside the Cayman Islands that also has a business address or carries on business in the Cayman Islands. If a company intends to hold land in the Cayman Islands, it must be registered as an oversea company (foreign company) under Part 11 of the Companies Ordinance.

The foreign company must clearly state its foreign company name and place of incorporation in all its official documents. Furthermore, it must clearly display the name and domicile of the foreign company at its place of business. If the foreign company is a limited liability company, it must state this in all official filings.

2、Programs for registering overseas companies

The following documents must be submitted when applying for the registration of an overseas company in the Cayman Islands:

A certified copy of the Memorandum and Articles of Association of the applicant company, notarized by the government of the place of incorporation of the applicant company or by a notary public, or a certified translation of the Memorandum and Articles of Association if the document is not in English.

A list of directors certified by the company’s key management personnel, including the names, addresses and occupations of the directors.

● One or more Cayman Islands residents as authorized representative(s), with the name and address of the representative(s).

1、Registered Cayman company name:

There are no special requirements for company names. English names, ending with LIMITED, LTD, CORP, etc., cannot appear in the names of BANK, TRUST, MUTUAL FUND, INSURANCE, or REINSURANCE, etc., unless they are licensed; Chinese names are allowed to be added for an additional fee.

2、Cayman company registered capital:

The Cayman Islands government has no restrictions on the registered capital of its offshore companies, but the general practice is to use US$50,000 as the minimum registered capital for incorporation. Capital may be divided into 50,000 shares at US$1 per share for a registered Caymanian company;

3、Share ratio

4、The scope of business:

There are no major restrictions on the scope of business in Cayman and companies can operate any nature of business under the premise of legality; however, it should be noted that special industries such as finance, banking, credit and insurance require special government approval.

5、Cayman company registered address: must be in the Cayman Islands.

6、Cayman registered agent:

A Caymanian company or individual (with Caymanian residency status) must be appointed as the registered agent;

7. The address of the shareholders of the company’s directors proves that

Generally, the address shown on the ID card, if you are a passport holder or a foreigner, please provide the director’s or shareholder’s personal residence address, not a mailbox or an industrial area address; (utility bill, credit card statement, choose one) within the last three months.

8、Proof of identity of company directors and shareholders:

Directors must be fully capable persons over 18 years of age, with no nationality restrictions, and must be one or more than one person. They must also provide identification or a passport.

9. A sample of the signature of the director and shareholder.

▶Registered Cayman Company Process

1. to draw up the name of the company, to confirm the registered capital, to provide identification and address proof documents of shareholders and directors and other relevant information;

2. We prepare the legal registration file for your signature.

3. submit the application to the Cayman Registry and obtain a full set of documents;

4. we will hand over the complete set of registered documents to you;

5. Registration time: 15-20 working days to complete all procedures and mail.

▶Documents obtained upon completion of incorporation of a Cayman company

1. Certificate of Incorporation (C.I.)

2. Full set of statutory documents for company registration

3. Company stock page

4. Articles of Incorporation (M & A)

5. 1 long bar badge

6. metal steel seal 1 piece