Cayman Offshore Company: The Advantages Of Forming One And How To Do ItCayman Islands, located in the Caribbean, are a group of three islands. If anybody is looking for expanding business to international levels, then opening a Cayman company can be an excellent move. The financial services available in Cayman are excellent and respect is shown for the clients' needs of confidentiality and efficiency. The Cayman Islands are located between Cuba and Central America. They have over six hundred banks which makes them one of the largest centers for offshore banking. The infrastructure in the Cayman Islands is sophisticated and commercial. The regulations related to business, especially those related to offshore companies, are minimal. The exchange controls are nil and free movement of funds is allowed. The advantages of forming an offshore company in Cayman Islands and how to do it can be discussed for the purpose of accessible information for all those who are keen to establish offshore companies in the islands. Once an offshore company is established in the Cayman Islands then it becomes an Exempted company. The incorporation of Exempt Companies is done under the Cayman Islands Companies Law, 1960. This act is based on the English Companies Act of 1948. It is tax free in the true sense. No sales tax, capital gains tax, income tax, inheritance tax are to be paid. Moreover, there are no double-taxation agreements with other nations. For Exempt Companies, in order to do business in Insurance, Banking, and Mutual Funds, a special license or specific consent is to be acquired. Holding of real estate in the Cayman Islands by the exempted companies is not allowed. Trade is also to be carried out outside the Cayman Islands. Maintaining agents and an office registered in the Cayman Islands is mandatory. The minimum requirement of director is one. He may be of any nationality or a corporate entity or an individual. The confidentiality laws of Cayman Islands are laid down in the Confidentiality Relationship Laws which are very stringent. Breach of confidentiality in relation to companies in Cayman Islands is considered to be a criminal offense. The time required to complete the procedures of incorporation of companies is also short: two days. For a period of twenty years the offshore company formed in the Cayman Islands has enjoyed a tax free status. The reporting requirements there are extremely easy. No accounts need to be filed nor is there any requirement of audit. In case of bearers shares they must be held by custodians who are allowed to do so by the Cayman Islands Monetary Authority. The Mutual Legal Assistance treaty to which the Cayman Islands is subject requires it to render assistance to other nations requiring information about companies registered in the Cayman Islands. Co-operation is required so that criminal activities can be curbed. As long as a Cayman offshore company carries out legitimate activities, then it has nothing to fear. |