Bell Rock has formed thousands of companies on behalf of its clients. We have procedures and processes which enable us to draft and register a Cayman company within 48 hours of receiving instructions provided all regulatory and compliance requirements are met. Our extensive expertise in this area not only enables us to advise clients on the type of company which will meet their needs but ensures that the formation process is quick and in full compliance with all regulations.
The three types of most commonly registered companies in Cayman under the Companies Act are the Ordinary Resident Company, Ordinary Non-Resident Company, and the Exempted Company.
An ordinary resident company
- usually formed for the purposes of carrying on local business in the Cayman Islands. In addition to the Companies Act, it is subject to the terms of the Local Companies (Control) Act 1995 which requires licensing, and the annual submission of a list of shareholders. Registration fees are payable on incorporation and annually.
An ordinary non-resident company
Subject to the same rules as a resident company, but must not conduct any business within the islands. This form, or that of the exempt company, is the usual choice for offshore operations. The Financial Secretary will grant a certificate of non-residence if he is satisfied that the company does not and does not intend to trade onshore. The company is then relieved of the licensing requirement. The normal minimum capital requirement is USD50,000. There are no restrictions on the location of general meetings or of directors or the secretary.
Records of members, directors, mortgages and charges must be kept. Financial records must be maintained although no audit is necessary and there is no requirement to file financial statements. Ordinary non-resident companies can apply to convert to exempted companies.
A Cayman Islands Exempt Company
– this differs from a non-resident company in the following ways
An exempted Cayman company does not have to use Ltd or Limited in its name;
it may issue bearer shares in addition to registered shares, but they must be held by an authorized depositary;
it need not file a list of shareholders annually, and does not even have to keep such a list;
it may obtain a Certificate of Tax Exemption (ie against any future Cayman taxation)