Cayman Islands Company Registration
The Cayman Islands are the world's fourth largest offshore financial center and one of the most renowned jurisdictions for offshore company registration, with tens of thousands of businesses registering Cayman companies each year. The Cayman Islands offer three major advantages: high confidentiality, low tax burden, and no foreign exchange controls, which have established the Cayman Islands' status as an offshore financial center and a "tax haven."
Advantages of Registering a Company in the Cayman Islands
1.Reducing Offshore Tax Burden for Businesses: The Cayman Islands Company Registration Statute stipulates a permanent exemption from tax obligations in the Cayman Islands. Currently, China and the Cayman Islands have signed a Double Taxation Avoidance Agreement, which is beneficial for businesses to reduce their tax burden.
2.An Important Stepping Stone for Businesses Going Public Overseas: Domestic companies often achieve overseas listings through indirect means by registering a Cayman company and swapping equity through the Cayman company.
3.Avoidance of Foreign Exchange Controls: Cayman Islands companies are not subject to foreign exchange controls, allowing flexible capital mobilization, and facilitating businesses in capital operations.
4.Facilitating Multinational Operations for Businesses: Registering an offshore company in the Cayman Islands can be a shortcut for businesses to go global and conduct multinational operations.
5.Confidentiality of Cayman Company Information: Shareholders, directors, and beneficiaries of Cayman companies are governed by the "Confidentiality of Relationships Law," ensuring high confidentiality of company information.
Conditions for Registering a Company in the Cayman Islands
1.Since 2019, the Cayman Economic Substance Act has officially come into effect. Newly registered Cayman companies must comply with the regulations of the Cayman Economic Substance Act. The determination of whether a company meets the requirements of the Cayman Economic Substance Act includes the following criteria:
（1）Whether the company has core income-generating activities in the Cayman Islands;
（2）Whether the company has appropriate management in the Cayman Islands (whether board meetings are held, their frequency, the number of attendees, and the requirement for minutes of board meetings to be kept in the Cayman Islands);
（3）Whether the company has basic operational activities in the Cayman Islands, sufficient expenditure, and a certain number of full-time employees.
2.Provide the name of the Cayman company (an English name is required; an additional fee is required for a Chinese name);
3.Confirm the shareholders, directors, beneficiaries, and share distribution ratio (at least one shareholder, who can be a natural person or a legal entity);
4.Confirm the registered capital, with a minimum of 1 USD, typically set to 50,000 USD by default;
5.Confirm the business scope and source of funds for the Cayman company.
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