Company Formation Survey 2008


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		1. Company law	The Companies Law (2007 Revision)
		2. Types of company: (a) type of company preferred for international transactions:	Exempted Companies; Ordinary Non-Resident; Ordinary Resident; Limited Duration Companies; Limited Liability Companies; Guarantee Companies; Protected Cell Companies (Segregated Portfolio Companies); No Par Value Companies.
		(b) shareless companies:	Permitted.
		3. Capital requirements:	There are no minimum paid up capital requirements.
		4. Costs to incorporate, excluding government fees:	Fees to incorporate vary in accordance with the structure proposed. They range from USD500 to USD1,500 for structures which are not complicated.
		5. Fees paid to authorities to incorporate:	Incorporation Authorised Capital i. Exempted: a. Up to USD50,000: USD575 b. Over USD50,000 to USD1 million: USD806 c. Over USD1 million to USD2 million: USD1,690 d. Over USD2 million: USD2,402 ii. Non-Resident: a. Up to USD50,000: USD490 b. Over USD50,000: USD690 iii. Ordinary a. Up to USD50,000: USD184 b. Over USD50,000: USD427 iv. Other companies: same as exempted or non-resident (depending on designation required).
		6. Annual fees paid to authorities:	Non-Resident: same as incorporation; Exempted: same as incorporation. Annual fees are payable in December each year and are the same as fees payable to the authorities on incorporation. There are late filing fees ranging from 33% to 100% of annual fees.
		7. Taxation rates applied to companies generally:	There are no income, capital gains or other forms of direct taxation.
		(a) the taxation of companies in 2 (a)
		8. Method of incorporation:	The corporate documents must be filed with the Registrar of Companies along with the requisite fees.
		9. Who may incorporate - specify what, if any, local representatives/ professionals required?	All company managers and persons offering incorporation services must obtain a licence from the Cayman Islands Monetary Authority and are regulated by that authority. Banks, trust companies and attorneys-at-law are permitted to incorporate companies along with company managers. All companies must maintain a registered office on the Island with a licensed representative.
		(a) are ready made companies available?	One member.
		10. Length of time to incorporate:	24 hours for rush services or three days normal service. Additional fees are required for 24 hour service.
		11. Minimum members:	One member.
		12. Registered office:
		(a) Can the registered office be a bank/ lawyer/ accountant's office (brass plate)?	Registered office must be with a licensed regulated person or entity, including banks, trust companies, attorneys or corporate managers.
		13. Directors and secretary: (a) Must a director/ secretary be resident?	There are no requirements for local directors or officers.
		(b) Are Corporate Directors allowed?	Yes.
		14. Appointee directors/ secretary possible?	Initial directors are appointed by shareholders. Directors appoint the officers. Corporate service providers, banks and trust companies will provide directors and officers for companies.
		15. Amount of fees payable to appointee directors/ secretary:	Fees payable for directors and officers range from USD2,500 and upward depending on the type of business the company conducts.
		16. Meetings:	There is no longer a requirement that the directors hold at least one meeting annually in the Cayman Islands.
		17. Annual return:	Companies are required to file an annual return with the Registrar of Companies each year along with the payment of fees.
		(a) Must financial statements of a company be audited?	Companies should prepare annual financial statements. Only regulated companies, ie, banks, trust companies, insurance companies or other regulated entity or service provider are required to file annual audited accounts.
		18. Is disclosure of profits required by filing balance sheets with annual returns?	Annual returns to the Registrar of Companies do not include financial statements. Audited accounts to regulators will include profit statements.
		19. Are there any exchange control or other financial restraints imposed upon a company?	No exchange controls exist.
		20. Companies formed in the last year:	14,238.
		21. Number of companies on the company register altogether:	87,109.
S I T E M A P BACK TO TOP		22. How, if any, is migration into and out of the jurisdiction achieved?	Migration in and out is permitted to and from jurisdictions with laws that permit the same.
		23. Is migration out of your country provided for?	Yes.
		24. Any amendments to company law over the last 12 months:	Yes – a revised version of the law 13 November 2007 with changes to winding up provisions.
		25. Anticipated amendments to company law over the next 12 months:	New winding up rules expected in the next 12 months and further revisions to the Companies Law
			Compiled by Michael Alberga, Myers & Alberga