CAYMAN ISLANDS

By Frances Emery. As the number of China's high net worth individuals grows each year, more and more are becoming privy to the advantages found in offshore financial centers. Whether it is a way to safeguard their investments, to reduce their tax burden, or to plan for an uncertain future, the world's most stable offshore financial jurisdictions can expect an increasingly large percentage of their clients to come from China in the future. The Cayman Islands is one of them. Although it is one of the world's leading offshore centers today, the Cayman Islands did not have an easy start.Its...

2020

Country: Cayman Islands Region:Caribbean Currency:Cayman Islands Dollar (KYD) Languages: English Time Zone: UTC-5 Phone Code: 1-345 Communications: Good Formation Cost:US$3,500 – US$4,500 Formation Time:3-5 business days Maintenance cost:US$2,500 – US$3,500 The Cayman Islands is one of the world’s leading international financial centres and is a politically stable jurisdiction thatoffers companies a tax neutral platform for mutual funds, private equity funds,holding structures, structured finance, insurance companies and listing vehicles. The Cayman Islands is also home to the world’s 50 largest banks and is the second largest offshore jurisdiction for captive insurance. Approximately eight out of ten of the world’s hedge funds...

2020

Country: Cayman Islands Region:Caribbean Currency:Cayman Islands Dollar (KYD) Languages: English Time Zone: UTC-5 Phone Code: 1-345 Communications: Good Formation Cost:US$3,500 – US$4,500 Formation Time:3-5 business days Maintenance cost:US$2,500 – US$3,500 The Cayman Islands is one of the world’s leading international financial centres and is a politically stable jurisdiction thatoffers companies a tax neutral platform for mutual funds, private equity funds,holding structures, structured finance, insurance companies and listing vehicles. The Cayman Islands is also home to the world’s 50 largest banks and is the second largest offshore jurisdiction for captive insurance. Approximately eight out of ten of the world’s hedge funds...

2020

The Cayman Islands International Tax Co-operation (Economic Substance) Law, 2018 (the “Economic Substance Law”), which is part of the OECD's global Base Erosion and Profit Shifting (BEPS) initiative, was passed on 17 December 2018 and came into effect on 1 January 2019. The Economic Substance Law will be implemented, including by further regulations and guidance to be provided, by the Cayman Islands Tax Information Authority (“TIA”). All international offshore financial centres (including Bermuda, BVI, Jersey, Guernsey and Hong Kong) already have or will implement similar legislation. To whom does the new Economic Substance Law apply? All companies incorporated under the...

CORPORATE & FIDUCIARY SPONSORED CONTENT 2019

The Cayman Islands enacted The International Tax Co-Operation (Economic Substance) Law on 1 January 2019 (the “Law”). The Law requires entities engaged in certain relevant activities to have demonstrable “economic substance” within the Cayman Islands, in accordance with the standards established by the OECD and the EU to combat base erosion and profit shifting (BEPS). WHO DOES THE LAW APPLY TO? Currently, the Law applies to Cayman entities that are defined as “relevant entities” conducting “relevant activities”. Relevant entities will include most Cayman Islands exempted companies, limited partnerships and Cayman LLCs except investment funds or entities through which investment funds...

CORPORATE & FIDUCIARY NEWS 2019

Executive Summary:Cayman is the largest offshore banking centre in the world, and the second largest offshore captive insurance base after Bermuda. There are no direct or indirect taxes; government revenue comes from customs duties, stamp duty and annual fees levied on corporations. A recent attempt by the administration to impose a payroll tax was withdrawn in favour of a substantial increase in work permit fees. It is thus difficult and expensive to employ expats. The economy is highly dependent on tourism and financial services. Since the opening of the Cayman Islands Stock Exchange in 1997, mutual funds have become a growing...

SPONSORED CONTENT 2018

Asia Outbound Company Formation and Funds Guide 2018 Introduction Country: Cayman Islands Region:Caribbean Currency:Cayman Islands Dollar (KYD) Languages: English Time Zone: UTC-5 Phone Code: 1-345 Communications: Good Formation Cost:3500-4500 USD$ Formation Time: 2-3 days Maintenance cost:2500-3500 USD$ The Cayman Islands is one of the world’s leading international financial centres and is a politically stable jurisdiction thatoffers companies a tax neutral platform for mutual funds, private equity funds,holding structures, structured finance, insurance companies and listing vehicles. The Cayman Islands is also home to the world’s 50 largest banks and is the second largest offshore jurisdiction for captive insurance. Approximately eight out...

CORPORATE & FIDUCIARY JURISDICTION 2018

What is unique in your jurisdiction and why Chinese investors should form companies there? FlexibilityThe flexibility of the structure of the Cayman Islands exempted company is one of its principal appeals. For example, an exempted company does not require any directors or officers of the company to be resident in the Cayman Islands.  The register of shareholders and minute books are not required to be held in the Cayman Islands and can be held in another jurisdiction. The company is not required to hold an annual general meeting of shareholders. There is no Cayman Islands law requirement for an exempted...

2015

What are the key advantages of your jurisdiction in terms of privacy & asset protection for a Chinese HNWI or Family (etc.) looking to succeed their assets to the next generation? Whilst Cayman has adopted the English common law relating to trusts and fiduciaries, it has bespoke legislative adjustments which have been specifically designed with international trusts and clients in mind. For example, there are no taxes or registration fees for private trusts. If you do register your trust to receive a no tax guarantee, the register is not available to the public, thus maintaining privacy. Cayman also has specific...

CORPORATE & FIDUCIARY JURISDICTION 2015