Why Start a Fund in the Cayman Islands?

Updated on Tuesday 13th June 2017

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Why Start a Fund in the Cayman Islands? Image
The Cayman Islands provides one of the most attractive markets for the registration of a fund. The jurisdiction offers a flexible regulatory framework, an advantageous taxation system applicable to the legal entities available here and other similar benefits. The types of companies that can be registered in the Cayman Islands provide a suitable basis that will allow the investors to obtain a high level of income. One of the highlights of the fund market in the Cayman Islands refers to the incorporation of hedge fund startup, being the top preferred manner for business purposes chosen by foreign entrepreneurs. 
 

Attractive regulatory framework in the Cayman Islands 


The regulatory framework available in the Cayman Islands for investment vehicles aims at a fast development of the businesses set up here. Investors interested in how to start an investment fund in the Cayman Islands should know that certain types of companies can be registered in two days, following a simple registration procedure. 

In order to register a company in the Cayman Islands, the respective entity will need to respect the basic incorporation requirements. In this case, the company should be represented by at least one director and one shareholder.  

Any company operating as a fund in the Cayman Islands is required to be registered with the Cayman Islands Monetary Authority (CIMA) and those interested in how to start a fund must know that the registration procedure may vary, depenind on the legal structure chosen for incorporation. 


Stable economy        

                                  
Another important aspect when starting a hedge fund or another type of investment vehicle in this jurisdiction points to the stability of the local economy. The region is considered a British overseas territory and it has a high level of political stability as well. In 2016, the local economy increased by 3%. 
 

Taxation in the Cayman Islands                      


The investment funds that can be set up in the Cayman Islands benefit from numerous tax exemptions. For example, the income deriving from investment activities is not taxed here. The same rule applies for the taxation of capital gains or the distribution of dividends and similar instruments. 

Businessmen are invited to contact our team of affiliates in the Cayman Islands for consultancy on the main reasons to invest in this jurisdiction.