Company Formation and Incorporation - Cayman Islands


The Cayman Islands were once part of the British Empire as a colony and then became a British Overseas Territory. English common law has always been the standard for its judicial system.  Many people know the Cayman Islands as a tax haven because it has no income taxes. The Cayman Exempted Company has become a very popular choice for foreign businesspeople to hold offshore bank accounts because of the privacy and Cayman tax-free benefits.

Cayman Islands corporations operate under the Companies Law of 1961.  Their corporate laws attract international business and numerous offshore investors choose to incorporate in their jurisdiction. 

Incorporating in the Cayman Islands is attractive to many as it is simple and fast. This is because it has a very developed and stable economy. This includes support from trust companies, lawyers, banks, insurance managers, accountants, administrators, and mutual fund managers. Furthermore, companies can find local support services to aid them.


Incorporation Process and Timeline

 Limited Liability Company

Exempt Company

Resident CompanyForeign Company Cayman Islands Foundation
Minimum number of directors11111
Minimum number of shareholders11111
Local Presence (director/ shareholder/ officer)NoNoYesNoNo
Maximum Foreign Shareholding100%100%0%100%100%
Physical registered office address requirement






Minimum Paid Up Share CapitalUSD 1USD 1USD 1USD 1USD 50,000
Incorporation Timeline1 week1 week 1 – 2 weeks1 – 2 weeks1 – 2 months

Public Register of Shareholders and Directors



Cayman Islands General RegistryCayman Islands General RegistryCayman Islands General RegistryCayman Islands General RegistryCayman Islands General Registry

Taxation and Accounting

 Limited Liability Company

Exempt Company

Resident CompanyForeign CompanyCayman Islands Foundation
Corporate Tax0%0%0%0%0%
Auditor RequirementNoNoNoNoNo
VAT PayableNoNoNoNoNo
Capital Gain Tax 0%0%0%0%0%
International Currency Control on RemittanceNoNoNoNoNo


 Limited Liability Company

Exempt Company

Resident CompanyForeign CompanyCayman Islands Foundation
General ActivityInternational TradingInternational TradingInternational TradingInvestment/ TradingWealth Management
Economic Substance RequirementDepends on business natureDepends on business natureDepends on business natureDepends on business natureDepends on business nature
Government Contracts EntitlementYesYesYesYesYes

Corporate Bank Account

 Limited Liability Company

Exempt Company

Resident CompanyForeign CompanyCayman Islands Foundation
Corporate Bank Account AvailableYesYesYesYesYes
Bank Account Opening Timeline2 – 4 months2 – 4 months2 – 4 months2 – 4 months2 – 4 months

Cayman Islands offers the following benefits:

  • Straightforward and fast incorporation

The incorporation process can be done within the week as there is no requirement for government regulatory authority approval.

  • Whitelisted

The Cayman Islands are a British Overseas Territory and follows international tax regulations, unlike the usual “tax havens”. This allows them from being placed in the offshore blacklist by the Financial Action Task Force and the international organisation.

  • Financial Assistance

There is no statutory prohibition on an exempted company providing financial assistance with regard to the acquisition of its own shares. The directors of the exempted company owe a fiduciary duty to the company to act in good faith in the best interests of the company in agreeing to provide the financial assistance.

  • Taxation

A shareholder is not subject to Cayman Islands taxes with respect to any distribution received from the company (including dividend and other distributions upon liquidation of the company) or with respect to any gain realised upon the sale, redemption or exchange of shares. There is no withholding of taxes with respect to any dividend or other distribution made to a shareholder on the sale, exchange or redemption of shares. No gift, estate or inheritance taxes will arise in the Cayman Islands on the transfer of shares by way of gift by, or on the death of, a person who is not a resident of the Cayman Islands.

  • Business condition

The development of the Cayman Islands as an international financial centre has led to a sophisticated business environment with a full range of services including banks, trust companies, lawyers, accountants, insurance managers, mutual fund managers and administrators, and all the expected support services. There are currently more than 100 trust companies maintaining their own office in the Cayman Islands.

  • Mergers

Mergers with other corporations from Cayman Islands or other jurisdictions are allowed


Cayman Islands Company Registration Guide

General Registry (Cayman Islands) develops and implements policies and systems for all registers including those for companies, partnerships, trusts, patents and trade marks..

The Cayman Islands Monetary Authority (CIMA) is the primary financial services regulator of the Cayman Islands and supervises its currency board.The CIMA manages the Cayman Islands currency, regulates and supervises financial services, provides assistance to overseas regulatory authorities and advises the Cayman Islands government on financial-services regulatory matters.

Desfran Services in Cayman Islands

With more than a decade of experience, our team at Desfran is here to meet your business needs beyond just company formation. We also provide the following services in Cayman Islands:

  • Company formation
  • Assistance in Business Management
  • Corporate Management advisory
  • Provision of registered agent and registered address
  • Provision of company management, directorship, and shareholding services
  • License application assistance
  • Onshore/ Offshore bank account introductions and applications
  • Virtual office services and other corporate services
  • Nominee services

Application Process:

  1. Submit your interest here
  2. Our Offshore Formation Specialists will reach out to you for an in-depth discussion
  3. A customised proposal will be sent to you upon uncovering your needs,
  4. Upon the proposal confirmation, we will require the of the following information for the application
  • Proof of Identity
  • Proof of Residence (within the last 3 months)
  • director(s),
  • shareholder(s) and
  • beneficial owner(s)

Once the above has been approved, we will send you an invoice for payment.

The incorporation process will commence upon receiving payment

Desfran deals directly with the authorities instead of the use intermediaries in your application process. In this way, we are able to ensure our prices remain competitive while you are ensured of utmost privacy and care in your application.

Contact us today.

Your one-stop cross-border service provider

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