Cayman Islands

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

overview

Cayman Islands

Cayman Islands Securities Investment Fund License.

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

Given the institutional and sophisticated nature of the investors in Cayman funds, the Mutual Funds (Amendment) Law does not impose any restrictions on investment objectives, risks, target rates of return, leveraging or other commercial matters, given the institutional and sophisticated nature of the investors in Cayman Island funds.

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.

Highly secure asset protection thanks to stringent legal framework.

  • Time frame: About 4 Months
  • Taxation: 0% (No corporate, capital gains, property or withholding taxes)
  • License: Cayman Islands Securities Investment Fund License
Application Process:
For the Company:
  • Certified list of names, addresses and nationalities of the directors and corporate officers of your company
  • Details of principal office in Cayman Islands
  • Additional documents requested by the Authority

For each Director, Shareholder and Ultimate Beneficial Owner:
  • Bank reference letter
  • 2 character reference letters
  • 1 reference verifying good financial standing
  • Clean criminal records
  • Educational qualification certificate

Please note:
  • If documents are not in English language, then they must be accompanied by a notarised translation.

  • When Shareholders are legal entities, it is required to provide apostilled set of corporate documents and Certificate of Good Standing.

  • The list of required documents published here is not exhaustive, CIMA may request to submit additional documents depending on the situation.
Company Structure:
  • At least 2 Directors

Taxation (A Tax Efficient Jurisdiction):
  • Corporate Income Tax: 0%
  • Dividend Tax – 0%
  • VAT: 0%
  • Personal Income Tax: 0%
 
Accounting Requirements:
  • All regulated mutual funds must have their accounts audited annually, with audited financial statements filed with CIMA within six months of the year end of the relevant mutual fund in electronic format, together with an annual return form including prescribed details, signed by a director.
  • The financial statements must be signed-off by an approved Cayman Islands-based auditor.

Others:
  • Registered Office – Required
  • Registered Agent – Not Required
  • Insurance -not Required
  • Secretary – Not required
  • Legal Framework: Mutual Funds (Amendment) Law 2020 & Private Funds Law 2020
 
  • Regulatory Authority: Cayman Islands Monetary Authority (CIMA)
 
  • Time Frame: About 4 months
 
  • Minimum paid up capital: No minimum or maximum amount prescribed for authorised, issued or paid up share capital
 
  • Initial minimum subscription :
 
  • Not less than 100,000 USD (or its equivalent in any other currency) per investor; or
 
  • Equity must be listed on a stock exchange approved by CIMA.
 
Permitted Activities:  
  • Collect funds from investors to invest in securities such as stocks, bonds, money market instruments and other assets, for the purpose of capital appreciation.
 
  • The portfolio must be operated by a professional fund manager, and structured in a way that matches the objectives proclaimed in the prospectus.
 
  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 Securities Investment Fund 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, we will provide proof of local presence, as well as settling all the fees.
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