Cayman Islands

Securities Investment Business License.

overview

Cayman Islands

The Cayman Islands are a British Overseas Territory located in the Western Caribbean, South of Florida and Cuba, West of Jamaica.

In contrast to conventional offshore jurisdictions, Cayman Islands financial services industry is well-regulated, hence enjoys a very positive reputation among investors.

There are no prohibitive licensing and regulatory provisions or stringent measures calling for local custodians, managers or directors as the legislation recognizes that most service providers are already regulated in their home jurisdiction.

There is a complete lack of direct taxation. Corporate, capital gains, property or withholding taxes simply don’t exist.

With over 200 banks and financial institutions based here, the Cayman Islands boost the fifth largest banking sector in the world, with a high concentration of top financial providers. There are also plenty of accounting firms (including all the Big 4 firms) and leading law firms.

The financial market here is regulated by the Cayman Islands Monetary Authority (CIMA), which imposes a stricter regime than most other offshore jurisdictions.

Since the implementation of ‘Mutual Legal Assistance Treaty’ in 1986 which facilitates the investigation by foreign enforcement agencies whenever a Cayman Islands company is suspected of fraud, the public perception of Cayman Islands has improved.

There is an increased level of compliance among the business community in the Cayman Islands, while confidentiality and anonymity still held in highest regard.

  • Time Frame: About 6 Months
  • Taxation: 0% (No corporate, capital gains, property or withholding taxes).
  • License: Cayman Islands Securities Investment Business License

For each Director, Shareholder and Ultimate Beneficial Owner:

  • Notarized / Certified True Copy of Passport
  • Notarized / Certified True Copy of Proof of Address
  • Notarized / Certified True Copy of Bank Statement
  • Bank Reference Letter
  • Curriculum Vitae (C.V.) dated and signed
  • 2 Character Reference Letters
  • 1 Reference verifying good financial standing
  • Clean Criminal Records
  • Educational Qualification Certificate

 

For each Corporate Shareholders of the company:

  • Certificate of Incorporation
  • Memorandum of Association
  • Articles of associations
  • Articles of Incorporation
  • Register of Directors  
  • Register of Shareholdings
  • Certificate of Good Standing (if the company is over a year old)

 

Other Required Documents:

  • Liquidity Provider Agreement
  • Proof of Source of Wealth
  • A detailed business plan, together with an outline of the company’s intended activities

Company structure:

  • Only one shareholder is required (either natural or legal person, no restriction on nationality).
  • At least 2 directors (natural persons only, no restrictions on nationality or residence)
  • The company must appoint an auditor

 

Taxation (A Tax Efficient Jurisdiction):

  • Corporate Income Tax: 0%
  • Dividend Tax – 0%
  • VAT: 0%
  • Personal Income Tax: 0%


Accounting requirements:

  • Returns must be submitted quarterly
  • Audited financial statements must be submitted annually


Others:

  • Registered office – Required
  • Registered Agent – Required
  • Secretary – Required


Insurance:

  • The company should maintain insurance to cover professional indemnity, the liability of its senior officer and corporate secretary, and/or business interruption at all times.
  • Insurance outside Cayman Islands is permitted.
  • Legal Framework: Securities Investment Business Law (SIBL)
  • Regulatory Authority: Cayman Islands Monetary Authority (CIMA)
  • Capital Requirement: KYD 100,000 (approximately USD 120,000)

Permitted Activities:
  • Accept and transmit funds
  • Execute orders on behalf of the clients
  • Underwrite financial instruments
  • Securities management
  1. Compile and prepare of all of the documents for initial verification

  2. Incorporation of a company in Cayman Islands

  3. Submit the application of Forex License to Cayman Islands Monetary Authority (CIMA)

  4. In the meantime, CIMA will require additional documents that will have to be provided in order to back-up specific information

  5. Liaise with CIMA on follow-up actions

  6. If all conditions are met, provisional approval will be granted by CIMA

  7. Once we reach this stage, Offshore Tech & Intermediary Services will provide proof of local presence, as well as settling all the fees.
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