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Setup Business outside India

Cayman Islands

Overview

Cayman Islands is one of the most stabilized British overseas territories in terms of economic as well as political. Over a period of time, it has gained a reputation of center for financial services. With its most promising exemptions on taxability on corporates, property and capital gains, it has become one of the most attracted places to conduct business.

Benefits of setting up in Cayman Islands
  • Formation of entities with distinct identity and can be setup as an offshore as well as resident company;
  • Allows 100% foreign ownership and ease in transfer of ownership;
  • No tax system applicable;
  • Leading providers of institutionally focused and specialised financial services.

Types of entities in Cayman Islands

Exempt Company
  • For carrying activities outside of the Cayman Islands i.e. an offshore company, an exempted company may be setup.
  • Exempt Company is of two types, one being setup for limited duration and other being setup with segrated portfolio.
  • A Limited duration company (LDC) must have atleast two members, preserves limited liability and also offers advatages of a partnership. LDC continues for a limited time or purpose as specified in the Memorandum but cannot exceed 30 years. Upon expiry of its duration, it is deemed to have automatically commenced voluntary winding up and dissolution.
  • A Segregated Portfolio Company (SPC) is required to include in its name either “Segregated Portfolio Company” or “SPC”. It allows for the segregation of the assets and liabilities of individual portfolios – Known in some parts of the world as “cells” – from the general assets of the overall company as well as from other portfolios. Each portfolio, however, is not seen as a separate legal entity.
  • An exempted company is required to file an annual retun and additionally a SPC is required to file a return stating all movements on its portfolio during the year.
Limited Liability Company (LLC)
  • For carrying out the activities mainly outside of the Cayman Islands, a Limited liability company (LLC) may be setup. This type of company has separate legal identity therefore the members of the company cannot be held personally liable for the company's debts or liabilities.
  • A LLC has no share capital but members acquire LLC interest and the management rests with its members and/or managers.
  • The formation of a LLC is similar to the process of forming a Cayman Islands exempted limited partnership.
Non-Resident Company
  • The formation of a LLC is similar to the process of forming a Cayman Islands exempted limited partnership
  • Such company cannot conduct business in Cayman Islands but may deal in shares of exempted companies, foreign corporations and partnerships. Also, such company may carry such activities in furtherance to its foreign business.
  • Such companies must maintain at their registered office, open for public inspection, a register of their past and present members.
Overseas Comapny
  • An overseas company (usually referred to as a foreign company) is incorporated outside the Cayman Islands.
  • Any such company can hold land or carry on business in the Cayman Islands, or to act as the general partner of a Cayman Islands Exempted Limited Partnership after obtaining registration.
Comparison of entities in Cayman Islands
Exempt Company Limited Liability Company (LLC) Non-Resident Company Overseas Comapny
Legal Status Separate Legal Entity Separate Legal Entity Separate Legal Entity Separate Legal Entity
Limited Liability Yes Yes Yes No
Minimum Capital US $1 US $1 US $1 None
Limit of shareholders/ partners Minimum 1 Minimum 1 Minimum 1 Minimum 1
Requirement of Director/ Manager Minimum 1 Minimum 1 Minimum 1 Minimum 1
Requirement of Company Secretary 1 Company Secretary 1 Company Secretary 1 Company Secretary 1 Company Secretary
Registered Office Address Mandatory Mandatory Mandatory N.A
Opening of Bank Account Mandatory Mandatory Mandatory Mandatory

Services offered by CorpAcumen Global

We at CorpAcumen Global assist you in identifying best suitable entity considering the goals of your businessand thereafter initiate the setting up process

  • Submit incorporation documents with the authorities in the preferred state
  • Provide registered office and local company secretary
  • Post incorporation, assist in opening of bank account with suitable banker
  • Obtain necessary licenses for the type of business
  • Provide services pertaining to accounting and taxation
  • Ensure continual compliances post incorporation, both event as well as annual based