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The Cayman islands

Description

The three Cayman Islands, Grand Cayman, Cayman Brac. and Little Cayman, are located in the western Caribbean. The Caymans are a British Overseas Territory, it’s a member of Britain Commonwealth. The state is a major international financial services centre. Also the islands are well known as one of the most popular offshore jurisdictions.

Advantages:

There are no personal or corporate taxes, no estate or inheritance taxes.
The island's favorable geographical location.
The state has a stable political system, based on the English Common Law system.
Developed and sophisticated business infrastructure.

Legislation:

Companies Law 1961 (amended in 1990, 1995, 2005, 2010)

Taxation:

The tax rate is about 0 in Caymans. There are no profits, value added, inheritance, income taxes. The only taxes, that Caymans have, are import duties on goods and products imported into Cayman and stamp duty on property purchases.

Main company forms:

Exempted companies (the most commonly used type for investors because such legal persons don’t run their business in the islands)
A company which carries on its business outside the Cayman Islands may be registered as an Exempted company. It’s equal to IBC ( International business company). The name of the company may end with the words "Limited", "Ltd.", "Incorporated" or "Inc."
In January of each year the Company must file with the Registrar of Companies a Statement signed by the Director that the operations of the Company have been outside the Cayman Islands, there are no other annual reporting requirements.
The Company may obtain a Guarantee from the Government against the imposition of future taxes in the Cayman Islands, such Guarantee is normally granted in the first instance for a period of 20 years.

Authorized capital:

Authorized capital can be expressed in any currency. Minimum authorized capital for company registration is US$50,000. It can be applied but not paid up. It’s possible to issue registered and bearer shares; bearer shares are held at professional custodian in the Caymans Islands.

Currency control:

No control.

Confidential information:

Information about shareholders and directors is confidential and isn’t acceptable for a third person.

Permitted activity:

Any activity, permitted by the law; banking and insurance activities require getting a license.

Agreement on double taxation avoidance:

As Cayman has no taxes, there are no double taxation agreements in place.

TIEA (Tax Information Exchange Agreement):

TIEA were signed with such states as New Zeeland, Indonesia, India, the USA, Canada, Great Britain, Germany.