The Top 5 Benefits of Exempted Company Formation in the Cayman Islands

An offshore company in the Cayman Islands offers a wealth of benefits to international businesses.

The Sun, sand, sea, and the glorious tropical vibe of the Cayman Islands have enthralled millions of visitors over the years. But it’s the stable economy and a reputation for having one of the best offshore company formation services in the world that attracts foreign investors and entrepreneurs to this little Caribbean paradise. High on the list of business attractions is the entity known as the Cayman Islands Exempted Company.

An exempted company is registered with the Cayman Islands Company Registry but must conduct its business outside the Cayman Islands. The benefit of this structure is that it allows trade across international borders with ease while minimizing tax exposure.

Here are the five top reasons why a Cayman Islands Exempted Company is one of the most popular and effective ways for overseas investors to run an international business from any location and with minimal exposure to taxation.

• Speed of Incorporation: Setting up a Cayman Islands Exempted Company requires minimal paperwork and can be done extremely fast, in as little as a day.
• No Direct Taxation: A tax exemption certification system allows the owner of a Cayman Islands Exempted Company to obtain a 20-year government guarantee that no direct taxes will be imposed on the business, including corporate, capital gains, payroll, real estate, withholding, or other taxes.
• International Operation: A Cayman Islands exempted company is legally able to receive international income while minimizing international tax exposure.
• Offshore Management: There is no requirement that a Cayman Islands Exempted Company has to be managed locally. The business can be managed from anywhere in the world.
• Minimal Management Restrictions: It requires just one shareholder and one director for incorporation. They can be the same person or entity, and 100% foreign ownership is valid.

Along with these advantages and minimal reporting requirements, you can get rid of the need for complex and resource-consuming accounting procedures and annual audits. No need to worry about investor protection and privacy, as there are no laws that require the identities of a Company’s shareholders or directors to be disclosed.

To open a Cayman Islands Exempted Company, you would require the services of a registered agent who specializes in offshore company formation in the Cayman Islands. The agent must conduct due diligence to “know the client” and understand the proposed activities of the company that he sets up on behalf of the client. A registered Cayman Islands Corporate Service provider with established local affiliations will be able to handle all the details efficiently and at a minimal expense.