Cayman Company + Bank
Your company is a very important part of your forever free plan. This is the ultimate, income-generating asset in your overall financial strategy.
Every investor knows that diversification is key, and they put their capital into assets of different kinds: gold, stocks, cash, real estate, etc. However, our experts tell us that a company should also be seen as an important asset. Here, you invest not only money but also time.
Why is this? Because if you open a low-tax company you’ll build a supreme investment mechanism that generates income, more than any other dividend. But where to open a company? This is not a secondary question. For a company to work as a powerful money-making machine it needs to be set up correctly and, most importantly, in the right place.
This is why today we present one of the finest jurisdictions to set this idea in motion: open a company in Cayman Islands and enjoy the best of the offshore corporate world.
Advantages of setting up a company in the Cayman Islands
Tax-neutral environment in a whitelisted jurisdiction
One of the features that make a Cayman Islands company so popular is the country’s tax friendliness. This is why many businesspeople around the world choose this option. With this decision, they access a variety of tax benefits. When it comes to taxes, companies are not subject to corporate, income, withholding, property, or capital gains tax. This goes for both a locally owned or a foreign-owned company in Cayman Islands.
If you're wondering how the government gets revenue from this, the answer is simple: they receive custom duty and licensing fees to build their state budget.
Moreover, you can get all these benefits in a totally whitelisted jurisdiction. Since the Caymans follow all the international tax standards, they are not on the EU’s blacklists.
Usually, the setup of an offshore corporation is associated with lengthy processes and lots of red tape, but things are different here. This country makes doing business easy. All you have to do is choose the right structure, prepare the due diligence documents and you'll have your company up and running in 1 to 4 working days.
When it comes to fees, they are usually quite low especially when they're compared to similar offers in the Caribbean. Here, not only fees increase but also the minimum required initial capital.
But money is not everything: time is actually our most valuable asset. If you register a company in Cayman Islands, you'll save lots of time as managing it will be straightforward. For example, a company in the Caymans doesn't require a local director, moreover, you can set up your structure with only one director and one shareholder and this can be the same person. To sum up, you need only one person to open a company in Cayman Islands.
A board of directors is not required, nor do you have to appoint any managerial role. Finally, there are no capitalization prerequisites, which means that investors don't have to put money upfront.
One of the best advantages of a company in the Caymans is that shareholders and directors are not on public records. Nonetheless, their names are presented before the Cayman Islands company register.
A flexible environment
Flexibility is something to consider very seriously when going offshore. You never know when you’ll change your plans and you probably travel often, so you need a structure that you can manage easily and remotely.
For example, a company in the Caymans doesn’t necessarily have to be local. Mergers are also allowed both locally and internationally. The Cayman Islands company register allows this and the final jurisdiction doesn't necessarily need to be the Caymans.
A country that welcomes businesses
The Cayman Islands are super business-friendly since business is its nature. There are several financial institutions that have chosen this country to place their investment and the Cayman Islands Monetary Authority has registered more than 11,000 funds. Recently, the Department of Commerce and Investment is set up to create special economic zones to make transactions even simpler. Thus, structures under this regime will get many benefits like reduced custom fees, express licensing and registration, competitive employment fees, and tax incentives.
Stable and reliable government
Although many overlook it, this is not a minor point. A country may be the perfect paradise today but completely change after elections. A new government can turn things completely around in the future and even take opposite measures to those that attracted you in the first place. So, you carefully need to plan where to open a company, and this applies in this case too.
The Cayman Islands government is investment-friendly and encourages foreign capital. The country is under the United Kingdom’s sovereignty, which means it has similar parliamentary practices and is home to a democratic regime. Here you won't find exchange controls or other policies that may affect business in the short or long term. You can rest assured that this is the nature of the country because of its history and close connection to one of the most important financial hubs in the world. In other words, the Cayman Islands are open for business, and this is not about to change anytime soon.
High literacy rate
By setting up a company in the Cayman Islands you'll be getting into a highly cultured country. The local literacy rate is 98.8%. This is important, especially if you're planning to work with local partners or employees. You don't have to worry about the language barrier as English is the official language here.
A small downside to the Cayman Islands is that it's very oriented to the service and tourism sector, so most of the workforce is dedicated to this. Foreign companies may find it difficult to find employees with special qualifications or particular skills.
Requirements and fees to open a company in Cayman islands
- Standard capital: $50,000 or its equivalent in another currency
- ID proof which must be a certified copy of the passport.
- Bank reference letter or bank statement.
- Professional reference.
- Curriculum vitae.
- Form KYC1 and order form (your Mundo representative will hand you the drafts).
- Proof that the source of your funds is legal.
Note: Documents must be submitted beforehand in a digital format. They must be of good quality and legible. All documents must be in English or translated into English. Mundo assists you with alternative documents if you shall not be able to provide these.
Our legal fee includes:
- Register of directors and members.
- Articles of association.
- Certificate of incorporation and incumbency.
- Resolution of the first board.
- Share transfer (from the subscriber to the shareholder).
- Appointment of the first directors.
- Notarized set of documents.
- Corporate bank account.
Once the registration is complete, we start the pre-approval process to open your account. Your Mundo expert will choose the right banking institution for you. This depends on your line of business, activities, and objectives. We consult with our partners, who are highly qualified banking specialists.
While the company is registered in approximately 2-4 business days, the bank account is set up in 1 or 2 weeks. This depends on how quickly you submit your due diligence papers and how long it takes for the bank to confirm your source of funds.
Disclaimer: The requirements and fees are viable on the date of publication; however, Mundo cannot control factors that might result in changing of the requirements or fees. To know the updated information, please contact our experts.
Open a low-tax company in the Cayman Islands with Mundo
The idea of having a company and a bank account abroad is quite tempting. This does not only mean diversification, but also higher profit. The tax advantages can help you avoid tax erosion if you know how to use them. Yet, keep in mind that these don’t exempt you from paying taxes in your country of residency or citizenship. This factor depends entirely on your particular tax situation and can only be assessed on a one-to-one consultation. For this reason, we highly recommend consulting with Mundo experts, who have plenty of experience in international taxation.
If you’re wondering where to open a company, the Cayman Islands may be the right choice for you. Contact us and meet your Mundo representative, who will guide you along the way and help you achieve your financial goals.
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