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Offshore company setup: advantages of the Cayman Islands
If you want to take your business offshore, I’m sure you’ve heard about this country. Of all the jurisdictions we prefer, our advisors recommend setting up a Cayman Islands business.
What you should be looking for if you want to move your business abroad
The offshore company set up is not much of a secret. As long as you hire a certified agent, you'll be all right. The process of choosing the jurisdiction is, however, a different story. If I have to summarize in two words what you should look for in the place where you will take your business offshore, it would be “convenience” and “protection”.
Low tax and easy maintenance
When I say “convenience” I mean everything that will bring you benefit and simplify your life. Naturally, if you go through all the trouble and are convinced that you want to move your business abroad, you'll do it because it brings you benefits. This is why low-tax jurisdictions are so popular for these types of strategies.
With the Cayman Islands corporate services, you only need to pay for custom duties and the license costs. Most taxes are not applied since the Cayman Islands company register provides incentives to attract foreign investment. From your side, you'll be optimizing your earnings and having the legal option to avoid tax erosion.
But not everything is about money: time is important too. Here you'll find that running a corporation is quite simple, especially with the assistance of your agent. The Cayman Islands company formation requires only one single person. For example, you can create your business with one director and one shareholder who can be the same individual. This will significantly streamline the due diligence process as you only have to provide information for one. There is also no board of directors and no minimum capital required.
Asset protection and privacy
A company in the Cayman Islands is as safe and private as it can get. If you want to take your business offshore, this is something to consider. Here you'll find that the names of shareholders and directors appear on the Cayman Islands company register but not on public records.
When it comes to asset protection, the matter is more complex. Many agents promote these companies as asset protection tools but they're not in the direct sense of the word. This advertisement is based on the fact that, if you move your business abroad, you are diversifying. So, instead of putting all eggs in one basket, you can open a branch abroad so that you have access to a different currency, a more stable environment, and more investment options. However, this will all depend on the case. If you come from an overtaxed country, you'll probably want to have a branch company in Cayman Islands, so that you have a protective cushion.
This works against local claims, local judge rulings, asset freezing, bank runs, and exchange controls. To what extent, this depends on the case.
Nonetheless, when it comes to the strict meaning of asset protection, this can only be achieved by a carefully designed plan that most of the time will include a trust.
The principle of the trust, or foundation in some cases, is the one in which property is legally separated from the owner. Thus, the assets are under the custody of a trustee or foundation for the benefit of the people you choose.
Contact our experts to find out how you can put your company under a trust’s ownership.
Disclaimer: This article is delivered as general information on the Cayman Islands corporate options. The updated and definite information will be provided to you during formal consultation.
Cayman Islands company formation
When it comes to the specifics, this country requires the usual forms and documentation for due diligence. For further details, please visit our article about establishing a Cayman Island company with an account.
Offshore company set up in this country takes approximately one to four days. Moreover, you'll find that the population is well-educated with a literacy rate of almost 100%. However, the local workforce is mostly concentrated in the tourism sector, which can make recruiting for a business a little hard.
All in all, this is a fantastic jurisdiction for a reason: it's both convenient and secure. With high flexibility, cost-effective fees, and plenty of incentives, opening a company in Cayman Islands may just be what you’re looking for. Contact your Mundo representative for tailored information and a quotation.
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