Cayman Islands Exempted Companies
Incorporation & Compliance Guide
Incorporate a Cayman Islands Exempted Company—the gold-standard offshore vehicle for hedge-fund platforms, SPVs, IP holding and global trading—and secure zero corporate, income and capital-gains taxes under the Companies Act 2024 Revision. Registration is lightning-fast (24–48 hours via the General Registry’s e-portal), director and shareholder details remain private, and the jurisdiction’s world-class courts and service ecosystem give investors instant confidence. Our turnkey Cayman company-formation service handles name reservation, bespoke Memorandum & Articles, registered office in George Town, Beneficial-Ownership and Register-of-Directors filings, plus economic-substance notifications, banking introductions and ongoing annual-return support—delivering a fully compliant, ready-to-operate corporate shell optimised for tax efficiency, asset protection and seamless capital raising.
1 | Why Choose the Cayman Islands?
- Global prestige — home to 12,000+ hedge funds and 500+ multinationals.
- Zero direct taxes — no corporate, income or capital‑gains tax.
- Speed — electronic registry enables same‑ or next‑day incorporations.
- Robust service ecosystem — world‑class banks, auditors and administrators.
- Modern, flexible law — Companies Act (2024 Revision) supports M&A, SPACs and redomiciliations.
- Strong IP & asset‑protection environment under common‑law jurisprudence.
2 | Governing Legislation & 2024‑25 Updates
Statute / Regulation | Key Points | |
|---|---|---|
Companies Act (2024 Revision) | Consolidates all prior amendments; clarifies “financial assistance” rules and simplifies share‑capital reductions. | |
Beneficial Ownership Transparency Act 2024 | Aligns with UK‑OT standards; introduces phased public‑search access from Q3 2025 while preserving exemptions. | |
International Tax Co‑operation (Economic Substance) Act (Revised) 2024 | Higher penalties (up to US $121,950) and enhanced TIA enforcement powers. | |
Register of Directors Regulations | Director details must be filed within 30 days; late fees accrue daily. | |
AML Regulations & Guidance Notes 2023 | Expanded source‑of‑wealth checks for politically exposed persons. |
3 | Exempted Company Features
Requirement | Detail |
|---|---|
Share Capital | No minimum; shares may be issued with or without par value in any currency. |
Directors | Minimum one (individual or corporate); names appear on a public register. |
Shareholders | Minimum one; records kept privately at registered office. |
Registered Office | Must be maintained in Grand Cayman through a licensed service provider. |
Financial Statements | No public filing; must maintain proper records. |
Economic Substance | Annual ES notification; full return only if “relevant activity” performed in Cayman. |
Redomiciliation | Companies can migrate in or out of Cayman under Part XII of the Act. |
4 | Incorporation Process
- Name Search & Reservation
- KYC / AML On‑Boarding – passport, proof‑of‑address, CV for each UBO.Draft & File Memorandum and Articles via the General Registry’s E‑Services portal.
- Certificate of Incorporation Issued (digital PDF); company number allotted.
- Post‑Incorporation – first board resolutions, share issuance, director register filing (Form 55).
- Bank Account Introduction – tier‑1 local or international banks; preparation of compliance pack.
- Economic Substance Notification – lodged concurrently with first annual return.
5 | Annual Maintenance Obligations
Obligation | Deadline / Frequency |
|---|---|
Annual return & government fee (US $854+) | 31 January |
Register of directors update | Within 30 days of any change |
Economic‑substance notification | Annually with return |
Beneficial‑ownership register update | Within 15 days of change (penalties CI$100/day) |
Accounting‑records location filing | Within 30 days of financial‑year end |
Non‑compliance with economic‑substance rules may incur fines up to CI$100,000 and TIA reporting to the foreign‑tax authority of the parent jurisdiction.
6 | Fixed‑Fee Incorporation Package
- Government incorporation & filing fees
- Bespoke Memorandum & Articles
- Year 1 registered office & licensed corporate‑services provider
- Digital corporate kit: Certificate, Registers, Resolutions
- Beneficial‑ownership & director‑register filings
- Economic‑substance classification memo
- Banking introduction (one account)
- 12‑month compliance helpline
Renewal from Year 2 includes government fee + registered office fee.
7 | Complementary Solutions
- Segregated Portfolio Company (SPC) Conversions
- Exempted Limited Partnership Formation
- Virtual‑Asset Service Provider (VASP) Licensing
- Independent Cayman Directors & AML Officers
- Master‑Feeder Fund Structuring
Ready to Incorporate in Cayman?
Book a 20‑minute strategy call and get a personalised roadmap to launch your Cayman Exempted Company.