Open an Exempted Company in the Cayman Islands
Updated on Thursday 15th June 2017
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Cayman Islands represents one of the main jurisdictions for starting a hedge fund. At the same time, investors can benefit from other types of structures which provide attractive taxation policies, such as the exempted company. This type of legal entity is incorporated following the regulations applicable under the Companies Law.
Provisions referring to the exempted company in the Cayman Islands
The main aspect defining the exempted company in the Cayman Islands refers to the fact that through this legal entity the investor will carry his or her business operations outside the country.
Those who want to perform investments in the Cayman Islands must know that the exempted company represents the most popular business form for offshore companies. Although the company’s activities will be carried out outside this jurisdiction, the investor will need to register the legal entity with the Registrar of Companies, based on a declaration which will testify this aspect.
The exempted company in the Cayman Islands is not allowed to enter business activities with legal entities or natural persons residing in this country. At the same time, the company can’t own land in the jurisdiction, unless the Financial Secretary of the Cayman Islands will provide consent in this sense.
Investors interested in how to start an investment fund in the Cayman Islands should know that they may also set up a hedge fund startup, which can be registered under three different legal entities.
Advantages of the exempted company in the Cayman Islands
Investors interested in how to start an investment fund should know that the legal entity will be incorporated based on the articles of association and the memorandum of association. The documents will provide information on the associates in the company, but it is important to know that the names of the company’s shareholders are not required to be registered with the Registrar of Companies. At the same time, the company can be incorporated by a single founder, who does not have to complete any residency requirements. The regulation is also applicable for the company’s directors.
One of the main advantages of the exempted company in the Cayman Islands refers to the fact the legal entity will be exempted from taxation for a period of twenty years.
Investors interested in how to start a fund or an exempted company in this jurisdictions are invited to contact our team of affiliates in the Cayman Islands for further information on the registration requirements.