Various Types of Cayman Island Company Formation

As an offshore company owner, you might know few business jurisdictions around the world, however, there are many. At present there are as much as 50 different jurisdictions spread across the world. Each of these business jurisdictions is renowned as famous tax shelters for offshore companies. In Cayman Island company formation you can setup up to five different types of module for business. These modules are resident companies, non-resident companies, limited duration companies, exempted companies and foreign companies. You can choose which Cayman Islands company formation you want to select for your business.

Here we will discuss the exempted corporation module in details and understand why this module is one of the most favourite model among businesses around the world.

Exempted companies basically are those entities which have proposed to carry out their business operations outside of Cayman Islands. This is certainly the most appropriate module for doing offshore transactions, where doing business in Cayman Islands is not prohibited except in execution of offshore business.

Benefits of Exempted Company,

• Exempted corporations are not bound to keep any register of members, or file annual returns at the Registrar office.
• Exempted corporations are also not forced to hold annual general meeting every year.
• An exempted company receive written guarantee for exemption of taxes imposed by Islands on the company for an initials time span of 20 years. This period is extendable up to 30 year in second phase.
• Free to bring changes to its Memorandum and articles of association as and when required without any kind of restriction from the Islands’ government.
• Exempted companies are free to issue shares with a nominal or no par value, which can be negotiable or not, which is at the discretion of company’s board of directors.

Apart from these regulations for exempted companies, funding in Cayman Island company formation is managed by Cayman registered fund.

In recent times mutual investment options increased in Cayman Islands considerably, hence it invited altercations in the fund policies and therefore, we have existing fund regulations in place. Cayman’s regulatory body, Cayman Islands Monetary Authority (CIMA) is growing with some pace due to inclusion of various other registered and licensed funds. These Cayman registered fund companies are regulated by various other regulatory bodies that have been formulated by CIMA from time to time. These pillars of Cayman’s funding setup are the Cayman Islands Society of Professional Accountants, the Cayman Islands Bar Association which brings out estimation of recommendations made by CIMA’s Policy and Research Division in accordance with the mutual fund industry in Cayman Islands. Other entities of this institution are the Cayman Islands Fund Administrators Association and the Cayman Islands Law Society.

These funding institutions are responsible for maintaining a balance between demand of offshore financial hub and pressure of creating an internationally accepted offshore funding module on requests of various international bodies.

Flexible policies and regulations especially for exempted company’s formation in Cayman Islands is a big step to attract more offshore business. Also, the Cayman registered fund regulations are monitored by various regulatory bodies for easy funding mechanism.

Author Resource:

Perry Crowley has pointed out to the growing trend of Cayman Island company formation that provides several advantages to outside businesses. The author favors Cayman registered fund which is the most common category of mutual funds known for its flexibility and tax efficiency. To establish a preferred fund structure here, he recommends the services of Genshape Management Limited.