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BACKGROUND
Geographical Location
The Cayman Islands consists of an island group in Caribbean Sea, nearly one-half of the way from Cuba to Honduras
. The main island, Grand Cayman, is situated approximately 1150 kilometres south of Florida. The three islands
have a total area of 260 square kilometres, with Grand Cayman having an area of 200 square kilometres.
Climate: tropical marine; warm, rainy summers (May to October) and cool, relatively dry winters (November
to April).
Population
The population of the three islands is approximately 39,335 (July 1999 est.), the majority of which reside
on Grand Cayman.
Religions: United Church (Presbyterian and Congregational), Anglican, Baptist, Roman Catholic, Church
of God, other Protestant denominations.
Political Structure
The Cayman Islands are a British colony and therefore the United Kingdom Parliament at Westminster retains
the right to legislate. The islands have a Governor who is appointed by the Queen who heads the Cayman Islands
Government and is responsible for the civil service, defence, law and order and external affairs. There is a Legislative
Assembly consisting of 12 elected members plus the Financial Secretary, the Attorney General and the Administrative
Secretary which may make laws with the consent of the Crown.
An Executive Council, consisting of three official members appointed by the Governor and five members elected
by the Legislative Assembly, formulates policy and advises the Governor.
Infrastructure and Economy
The economy of the islands is strong enjoying full employment with most of the revenue being derived from the
financial services sector and tourism.There are excellent telephone, fax and telex facilities with direct dialling
to and from the rest of the world. The islands are served by Cayman Airways, Pan-Am, Northwest Airlines and American
Airlines. Miami is one hour away by air and the island also has direct air links with New York, Atlanta, Tampa,
Houston and Jamaica. The islands are a popular cruise-ship stop.
Language
The official and spoken language is English.
Currency
Caymanian Dollar. 1 Caymanian Dollar = U.S.$1.20.
Exchange Control
None.
Type of Law
Based on English Common Law.
Principal Corporate Legislation
The Company Law of the Cayman Islands is based on the English Companies Act of 1948 and can be found in the
Cayman Islands' Companies Law of 1960, as amended.
KEY FEATURES TABLE
| General |
Non-Res |
Exempt |
| Political Stability |
Good |
Good |
| British Based Legal System |
Yes |
Yes |
| Type of Company |
Non-Res |
Exempt |
| Disclosure of Beneficial Owner |
No |
No |
| Migration of Domicile Permitted |
No |
No |
| Tax on Offshore Profits |
Nil |
Nil |
| Non-English Language Names Allowed |
Yes |
Yes |
| Corporate Requirements |
| Minimum Number of Shareholders |
One |
One |
| Minimum Number of Directors |
One |
One |
| Bearer Shares Allowed |
No |
Yes |
| Corporate Directors Permitted |
Yes |
Yes |
| Secretary Required |
Yes |
Yes |
| Standard Authorised Share Capital |
US$50,000 |
US$50,000 |
| Local Requirements |
| Registered Office/Agent |
Yes |
Yes |
| Company Secretary |
No |
No |
| Local Directors |
No |
No |
| Local Meetings |
No |
No |
| Government Register of Directors |
Yes |
Yes |
| Government Register of Shareholders |
No |
No |
| Annual Requirements |
| Annual Return |
Yes |
Yes |
| Audited Accounts |
No |
No |
| Recurring Government Costs |
| Annual Tax/Licence Fee |
US$427 |
US$500 |
| Annual Return Filing Fee |
Nil |
Nil |
COMPANY FORMATION
Type of Company for International Trade and Investment
Exempt Company.
Procedure to Incorporate
For Exempt Companies by submission of the Memorandum and Articles of Association and registration fee to the
Registrar of Companies, together with a sworn statement declaring that the business activities of the proposed
company will be undertaken mainly outside the Cayman Islands. The names and addresses of the proposed first Directors
must be disclosed to the Registrar.
Restrictions on Trading
Cannot trade within the Cayman Islands, own real estate in the Cayman Islands. Cannot undertake the business of
Banking, Insurance business or mutual fund business unless licensed. Cannot solicit funds from the general public.
Powers of Company
A Cayman Islands Exempt Company has all the powers of a natural person.
Language of Legislation and Corporate Documents
English.
Shelf Companies Available
Yes.
Time Scale to Incorporate
2 days.
Name Restrictions
"Bank", "Insurance", "Assurance", "Re-Insurance", "Trust",
"Municipal", "Charter", "Co-operative", their foreign language equivalents or, in
the opinion of the Registrar, any word that would suggest a connection with a Royal family or Government authority.
Language of Name
Names can be expressed in any Language, provided that the Registrar of Company receives a translation thereof.
The corporate documents will however be in English.
Names Requiring Consent or a Licence
"Bank", "Insurance", "Assurance", "Re-Insurance", "Trust",
"Building Society" or their foreign language equivalent.
Suffixes to Denote Limited Liability
There is no requirement to utilise a suffix to denote Limited Liability, although normally companies are incorporated
to include the suffixes "Limited", "Incorporated", "Corporation" or their abbreviations.
Disclosure of Beneficial Ownership to Authorities
No requirement.
SHARE CAPITAL, TAXATION, LICENCE FEES AND COMPLIANCE MATTERS
Authorised Share Capital
The minimum is U.S.$1.00, but it is normal to incorporate with an authorised share capital of U.S.$50,000,
this being the maximum for the minimum Capital Duty payable to the Registrar of Companies upon incorporation.
Classes of Shares Permitted
- Registered Shares of par or no par value.
- Bearer Shares.
- Preference Shares.
- Redeemable Shares.
- Voting or non-voting shares.
Bearer Shares Permitted
Yes. Permitted.
Taxation
There is no form of taxation in the Cayman Islands relating to individuals, corporations or trusts.
Double Taxation Agreements
The Cayman Islands has no double taxation agreements.
Licence Fees
For Exempt Companies with a share capital not exceeding U.S.$50,000 = U.S.$500.
For Exempt Companies with a share capital greater than $50,000 but not exceeding U.S.$2,000,000 = U.S.$700.
For Exempt Companies with a share capital exceeding U.S.$2,000,000 = U.S.$1,750.
Financial Statement Requirements
There is no requirement to file accounts for Exempt Companies.
STRUCTURE OF MANAGEMENT
DIRECTORS
Minimum number of Directors
One
COMPANY SECRETARY
Company Secretary Required
No, the legislation does not make any specific reference to a Company Secretary.
SHAREHOLDERS
Minimum number of Shareholders
One
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