Jul 5 2011
Common scheme of Cayman companies
The Companies Law from 1961 ( further amended in 1990, 1995) is based on English law. The wider
recent revision came with the Companies Law, 2009, becoming effective on 11th of May, 2009.
The Cayman jurisdiction offers four types company under the Companies Law:
- Cayman Island ordinary resident company
- Cayman Island ordinary non-resident company
- Cayman Island exempt company
- Cayman Island Exempted Limited Duration Company
Starupr offers two commonly used companies – ordinary resident and exempt company
Ordinary Resident Company
An ordinary resident company (meaning Company intended to run a business on Cayman Islands) is usually formed for the purposes of carrying on local business. There is an requirement for an AGM (Annual General Meeting) and a register of members must be kept at the registered office, open to public inspection. The next requirement is to keep the end wit “Ltd.” or “Limited”. There is a Immigration process which is supposed to be taken into account before you think about to start move to Cayman Islands. Registration fees of US$ 365.85 are payable on incorporation and annually for capital not exceeding US$ 50,000.
For better understanding of The Companies Law (Exempted Company) please read about Non-Resident Company.
Ordinary Non-Resident Company
There is a different between non-resident and resident company. Non-resident company is subject to the same rules as a resident company however Non-resident company can not conduct any business within the islands.This company is usually chosen for the purpose of offshore operations. You don’t need any license if you don’t conduct business in the territory of Cayman Islands. There is just one requirement for reporting to fill the annual list (giving the names and address of members, directors and the amount of paid-up capital) to the Registrar. Non-resident must also maintain at their registered office, open for public inspection, a register of their past and present members. Fees payable to the Registrar of Companies for Non-resident company – uppers SH Capital 42,000 – fee US$ 487,80.
If you think to open up an exempt company there is no special requirement however if you would like to be sure to have guarantee for next 20 years (if the government will change the company law and regulation) then you can apply for extra certificate which will guarantee you the exemption for next 20 yerars since incorporation date. An exempt company (or limited duration exempted company) is the normal form of choice for collective investment vehicles. Incorporation fees depend on registered capital. Fees payable to the Registrar of Companies for Non-resident company – uppers SH Capital 42,000 – fee US$ 573,17. It’s better to compare a non-resident company and an exempted company in order to see the main differences . Here are main differences:
- there is no requirements to keep a register of members open for public inspection
- an ex. company need not hold a AGM (Annual General Meeting) in the islands ( non-resident companies is a must)
- the form of company as “Limited” or the abbreviation “Ltd.” does not have to stand behind the name
- the capital might be expressed in any currency or in multiple currencies
For both type of companies need to be filled a declaration with the Registrar (government body) that the operations of the registrant (our customer) will be conducted with the outside the Cayman Islands. If you would like to see the Registration & Annual Fees click here.