1. Industry research suggests that China will soon rank first in the world as a source of clients. Have you experienced an increase in demand for your company incorporation services from this region?
The demand for incorporation of Cayman Islands exempted companies from Chinese clients continues to increase yearly. Chinese clients appreciate the flexibility, asset security, ease of operation, maintenance and control afforded by Cayman companies, as well as the highly competitive fees charged. Chinese clients also appreciate that Cayman offers a sophisticated business environment with a full range of services including banks, trust companies, lawyers, accountants, insurance managers, mutual fund managers and administrators, and all the expected support services.
2. What is the single most important advantage your jurisdiction provides for Chinese clients?
Cayman corporate structures allow Chinese clients to maximize the flexibility and other benefits of utilizing such structures in international finance transactions and/or investments such as: the ability to structure group businesses with a holding company to maximize investment and tax efficiency, effect IPOs, merge or consolidate with another Cayman company or a company from another jurisdiction that permits mergers or consolidations with a foreign entity, to effect de-listings, and take-private transactions, and generally achieve efficient tax structuring of businesses; the ability to use Cayman corporate structures to facilitate tax-efficient wealth management and succession planning.
3. What is the main reason a Chinese client would consider using a shelf company in your jurisdiction?
Cayman structures are ideal for international finance transactions and/or investments for many reasons, including: incorporation with name written in Chinese characters; incorporation within one business day of documents being filed; no requirement for directors to be resident in Cayman; register of shareholders and minute books can be held in another jurisdiction; no requirement for shareholders’ annual general meeting; maximum confidentiality – with no requirement to publicly file register of shareholders or accounting information; no taxes on distributions or on capital gain; no withholding taxes on dividends or other distribution; no gift, estate or inheritance taxes; no foreign exchange restrictions
4. What is your jurisdiction’s unique selling point in setting up offshore companies for Chinese clients?
The Cayman Islands are the leading offshore financial jurisdiction with a very sophisticated business environment with a full range of services including banks, trust companies, lawyers, accountants, insurance managers, mutual fund managers and administrators, and all the expected support services. Chinese clients appreciate the degree of sophistication as well as the flexibility, asset security, ease of operation, maintenance and control afforded by Cayman companies, and the highly competitive fees charged.
Source: Loeb Smith
