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Cayman incorporation

About registration

Cayman is the fourth largest offshore financial center in the world and one of the world's famous offshore companies. Every year, tens of thousands of enterprises register Cayman company. The Cayman Islands is exempt from a number of taxes, which makes it an offshore financial center and a "tax haven".

In addition, Cayman company is often used to build a structure to help enterprises to achieve curve listing. Cayman company can also avoid the restrictions of foreign investment companies stipulated by many countries, which has great attraction for many enterprises. Cayman has three characteristics: high confidentiality, tax relief and no foreign exchange control.

Advantages of registration
1. Reduce the offshore tax burden of enterprises: the company registration law of the Cayman Islands provides permanent exemption from the tax obligation of the Cayman Islands. At present, China and the Cayman Islands have signed an agreement to avoid double taxation, which is conducive to reducing the tax burden of enterprises.
2. An important springboard for overseas listing of enterprises: domestic enterprises often achieve overseas curve listing by registering Cayman company and replacing equity by Cayman company.
3. Circumvention of foreign exchange control: Cayman Islands companies have no foreign exchange control, they can be flexibly mobilized to facilitate the capital operation of enterprises.
4. It is convenient for enterprises to carry out transnational operation: registering Cayman offshore company can be a shortcut for enterprises to go to the world and carry out transnational business.
5. Information confidentiality of Cayman company: the shareholders, directors and beneficiaries of Cayman company are subject to the confidentiality maintenance relationship law, and the company's information is highly confidential.
Condition of registration
1. From 2019, the economic substance act of Cayman will come into force. The newly registered Cayman company must meet the economic substance act of Cayman to judge whether a company meets the economic substance act of Cayman:
① See if the company has revenue generating core business in Cayman;
② Whether the company has proper management in Cayman (whether to hold a board of directors, frequency of holding, number of participants, and minutes of the board of directors must be kept in Cayman);
③ Whether the company has basic operation activities, sufficient expenses and a certain number of full-time employees in Cayman.
2. Provide the name of Cayman company (English name is required, if additional cost is required for Chinese name).
3. Confirm the proportion of shareholders, directors, beneficiaries, and shares (at least one shareholder can be a natural or legal person)
4. The minimum registered capital is USD 1, basically USD 50000.
5. Confirm the business scope and capital source of Cayman.
Registration process
1. Approve the proposed name of Cayman and determine the Chinese and English name of Cayman;
2. Fill in the Cayman company registration application, power of attorney and sign the agreement, and pay the advance payment;
3. Determine the shareholders, directors, share proportion and registered capital of the Cayman company, and then submit the corresponding information;
4. Go through relevant procedures in all departments of Cayman government;
5. After the company is registered successfully, hand over the complete set of registered company documents and collect the balance;
6. Documentation, Cayman company registration completed.
Company operations

1. The bank account number can only be applied for after the establishment of Cayman company. After the registration of Cayman company, you can open a domestic offshore account or an offshore account in Hong Kong, such as HSBC, Hang Seng Bank, Citibank, Standard Chartered Bank, etc. the best choice is to open an offshore bank account。

2. The annual audit of Cayman company is one of the important links to maintain Cayman company. The annual audit fee of Cayman company includes the annual renewal fee of the government, the annual registration service fee of Cayman company and the service fee of the registered address of Cayman company.

Common problem
How long does it take to register with Cayman?
A: it will take about 18-20 working days. If the company has a Chinese name, the time may be extended for another week.

Q: what information is needed to register a Cayman company?
A: the information required for registration includes:
① the English name of the company;
② the copy of the ID card or passport of the director and the sponsor, and the scanning copy of the address Certificate (the above certificate needs to be notarized by the domestic notary office, or notarized by the accountant / lawyer (Hong Fu'an can provide the Hong Kong accountant certification service at a separate cost);
③ the statement of business scope.

Q: what is Cayman's tax situation?
A: the Cayman Islands received a royal decree in 1978, which provided for the permanent exemption of the Cayman Islands from tax obligations. Therefore, there is no tax in the Cayman Islands at all. There is no tax on individuals, companies or the trust industry. Therefore, it also gained the reputation of "tax haven".
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