Are you looking to set up a business, but not sure if your hometown is the right place for it? Well, perhaps a change of scenery is in order, and maybe the Cayman Islands is the place for it.
As you will see in this article, setting up a business on the Cayman Islands registrar of companies is easier than most. Couple this with the huge number of benefits we will be listing here, it might just be the place for you. So, to find out why the Cayman Islands is a great place to set up a business, read on…
An Introduction to the Cayman Islands
The Cayman Islands were once set up as a colony of the British Empire, and are now a British Overseas Territory. The islands are made up of three land masses in the Caribbean, the largest of which is named Grand Cayman.
All three are major holiday destinations with a lot to offer, including tropical weather and seas, as well as lovely people and accommodation. Not only that, but they make a great place to set up a life and business.
Quality of life here is second to none, and general living costs are pretty low. So, if you are looking to set up a business, the Caymans could just be a place to relocate to.
Why Do People Set Up a Business in the Cayman Islands?
Now that we know a little more about the Cayman Islands, why is this such a great place to set up a business? Well, once you’ve gone into the nitty gritty legal requirements of it all, and realised it’s a possible choice, there are a number of benefits. These include:
Firstly, the Caymans have always had a very stable economy. This is because their banking system is very popular, as well as the continuous tourism here, making it a very lucrative environment. There are more businesses than people registered here, making it a booming hotpot of start-ups and older businesses alike.
To add to this, their continuous political stability is a credit to their friendly government and sound legal system, which rivals any other in the world. Generally, it’s a thriving area where people across the world are welcome, and able, to live and succeed.
The highlight of living in the Caymans are the financial incentives. Specifically, the zero-tax lifestyle is prevalent throughout every aspect here. It is, in fact, a white-listed area unlike many other “tax havens”, so it is a completely legal way of life. But what tax benefits might you encounter here?
Firstly, the lack of Income Tax means disposable income is much greater here than in most countries. What’s more, all other taxation on businesses, including corporate tax and capital gains, equates to zero pounds. To further this, there are also no shareholder transfer taxes, like inheritance tax.
On a similar vein, any new businesses will not have to pay any upfront capital as a deposit, as you do in many other countries. What’s more, initial corporate registration and annual renewal fees are lower than most places. So, you can set up with no penny under your name, making it much more flexible for start-ups.
Ultimately, it makes it an enviable condition for businesses to survive and thrive in. It also makes it a perfect place for people to live in general.
Speedy and Easy Set Up and Management
Initial set up and incorporation of your Caymans business is a piece of cake. It can take just one day to completely sort, because there is no government regulatory authority approval needed.
To add to this, general management will also be speedy and easy as shareholders do not have to be in the country to manage them. They could be anywhere in the world and still run the company efficiently and legally.
Alongside the fact that shareholders don’t have to be legal residents to set up a business here, there’s a lot more flexibility where that came from!
For example, Cayman Islands statutes allow mergers with other corporations in both the Cayman Islands and in other countries. This means that the final merger will exist in multiple jurisdictions.
In addition to this, corporate laws in the Caymans mean the company director can also be the single shareholder of the company. So, no other entities need to be present; just one person to head it up completely.
In other countries, financial documents have to be filed for tax reasons, which means all financial and business expenses and incomings are open for all to see. That said, because of the zero-tax policies in the Caymans, this isn’t the case.
This privacy also extends to corporate documents. For example, there is no annual requirement to hold a shareholder meeting, and if meetings take place, minutes don’t have to be recorded. This means that business transactions and meetings can remain within the business alone.
One great bonus about the Cayman Islands is that the native language is actually English. This makes it really easy for English businesspeople to integrate themselves into working life here.
Enough about the financial benefits, and let’s move onto the things that matter! More specifically, the weather in the Caymans is regarded as tropical, meaning you’re pretty much guaranteed warm weather every day. Not a bad environment for working life!
The people in the Caymans are not only friendly and welcoming, they are also highly educated, making them a perfect pool of people to hire from. What’s more, we’ve already touched on the supportive government, which makes this a great place to set up a business.
Finally, let’s not forget about the huge numbers of tourists who enter the Caymans every year. Apart from 2020, where the picture changed dramatically for many holiday-goers, the average year sees more and more tourists come and go annually.
In 2019, the total was counted at almost 503,000 tourists throughout the whole year! This means there’s a huge market for a wide variety of businesses looking to flourish.
Ready to Set Up Your Cayman Islands Business?
Clearly, there are many redeeming qualities which make the Cayman Islands one of the best places to set up a business. Be it financial incentives, the friendly and tropical climate, or the lack of general admin, there’s much to boast about.
We hope this article has provided you with food for thought in terms of your new business location. Perhaps the Cayman Islands will be your home in the future? Good luck!