Setting up a company in the Cayman Islands
To set up a company in the Cayman Islands as a founder from abroad, you work through a licensed service provider, reserve a name, file a memorandum and articles of association with the General Registry and return signed consent forms. If the business will be carried on mainly outside the Islands, the exempted company is the type designed for it. The filing itself is short. What takes time is the identity checks, the choice of company type and the yearly duties that follow from it.
In short: pick the company type, appoint a provider licensed by the Cayman Islands Monetary Authority (CIMA) to act as registered office, pass its identity and ownership checks, file the incorporation application with the registration fee, then keep the January return, the annual fee and the beneficial ownership information up to date every year.
Which company type to use when you set up a company in the Cayman Islands
The General Registry lists several company types. The choice depends mainly on where the business will trade.
| Type | What the Registry says it is for |
|---|---|
| Ordinary resident company | Carries on business within the Cayman Islands |
| Exempted company | Activities carried out mainly outside the Cayman Islands |
| Ordinary non-resident company | An alternative to the exempted company |
| Limited liability company (LLC) | Members cannot be held personally liable for the company’s debts |
| Foundation company | A separate legal entity that may be formed by any person |
| Special economic zone company | Authorised to carry on business in a special economic zone |
The exempted company comes with a clear limit. Under the Companies Act, it may not carry on a trade or business in the Islands with any person, except in furtherance of its business outside the Islands, unless it holds a licence to do business there. It can still sign contracts in the Islands and use its powers there for its business abroad. A subscriber also signs a declaration at incorporation that the company will operate mainly outside the Islands.
If you plan to sell to customers on the Islands, look at the ordinary resident company instead and expect further local licensing. The rules for that path are different, so ask a company formation provider in the Cayman Islands to compare the two before you file.
Step 1: Appoint a licensed provider as registered office
Every company must have a registered office in the Islands. For an exempted or non-resident company, the Companies Act goes further: the registered office must be the address of the person licensed by CIMA to provide company management services to that company. In practice this is the first decision you make, because the provider files your application and keeps your records.
The government’s business portal describes two routes: hire a licensed service provider, or open an account on the Registry’s Cayman Business Portal. For an exempted company, the registered office rule means a licensed provider is part of the picture either way.
Before you sign, look the provider up on CIMA’s search page, which lists entities currently licensed or registered by the regulator, including company managers and corporate service providers. On Accountanty, 14 of the 15 firms listed in the Cayman Islands offer company formation and 14 offer corporate secretarial services.
Step 2: Pass the identity checks and declare the beneficial owners
Expect the provider to ask for identity and address documents for every shareholder, director and beneficial owner before it files anything. Have certified copies ready early; this step usually sets the pace.
The General Registry explains that Cayman companies are required by law to maintain and file beneficial ownership information. A beneficial owner is someone who:
- holds more than 25% of the shares or voting rights, directly or indirectly; or
- can appoint or remove a majority of the board of directors.
If no one meets either test, the beneficial owner is the person who has significant influence or control over the company. Under the Beneficial Ownership Transparency Act, 2023, the corporate services provider that gives the company its registered office keeps the register and deposits the information with the authorities. Failing to file can lead to the company being struck off.
Step 3: Reserve the name and prepare the memorandum and articles
The Registry describes three steps to incorporation: reserve the company name, complete the incorporation application and return the signed consent forms.
- Name. If the name contains a restricted word, you need prior approval from CIMA or the Registrar before the application goes in.
- Memorandum of association. It sets out the name, the registered office and the objects of the company.
- Articles of association. They regulate how the company runs internally, such as how directors are appointed and how shares transfer.
The Act lets one or more persons form a company by subscribing to a memorandum, so a single founder is enough. The Registry also notes there is no minimum capitalisation requirement. The registered capital you choose still matters, because it sets your fees.
Step 4: File the application and pay the registration fee
Your provider files the application with the Registry and pays the government fee. For an exempted company the fee depends on registered share capital, per the Registry’s fee schedule effective 1 January 2025:
| Registered share capital (CI$) | Registration fee |
|---|---|
| Up to 42,000 | CI$700 (US$853.66) |
| 42,001 to 820,000 | CI$1,000 (US$1,219.51) |
| 820,001 to 1,640,000 | CI$1,984 (US$2,419.51) |
| Above 1,640,000 | CI$2,568 (US$3,131.71) |
The provider’s own fee for formation and the first year of registered office comes on top. The Registry’s incorporation page gives no standard processing time; once your documents are complete, ask the provider for a written timetable.
Step 5: Get the company ready to operate
Once incorporated, the company keeps its registers at the registered office. The Registrar keeps a list of current directors, which anyone may inspect for a fee, so treat director names as information others can see.
Next comes the bank account. Banks run their own checks on the company and its owners, and six listed firms offer bank account assistance. If the business needs a licence for its activity, such as fund or insurance business, that is a separate application to the regulator and should be planned before you start trading.
Yearly duties for an exempted company
The Companies Act sets a fixed rhythm. In January of each year after the year of registration, an exempted company files a return declaring, among other things, that its operations have been mainly outside the Islands, and pays its annual fee with it.
| Registered capital (CI$) | Annual fee (Companies Act, Schedule 5) |
|---|---|
| Up to 42,000 | CI$925 |
| 42,001 to 820,000 | CI$1,225 |
| 820,001 to 1,640,000 | CI$2,209 |
| Above 1,640,000 | CI$2,793 |
Paying late costs more: a penalty of 33.33% of the fee from 1 April, 66.67% from 1 July and 100% from 1 October. A company that does not file the return or pay the fee is treated as a defunct company.
Two other duties need a plan from the start:
- Economic substance. The Economic Substance Act came into force on 1 January 2019 to implement the standard on substantial activities. Some companies, depending on what they do, must show real activity in the Islands and report each year. Ask your provider early whether your company is in scope.
- Beneficial ownership updates. Changes in who owns or controls the company must reach your provider so the register stays current.
On Accountanty, all 15 listed firms offer accounting and 10 offer tax compliance, which covers the bookkeeping and reporting side.
The tax position, as the Registry states it
The General Registry states that there are no corporation, capital gains, payroll, property or withholding taxes on any type of company in the Cayman Islands. That is the local position only. Where you live, where the company is managed and where it earns income can all create tax duties elsewhere, and the Islands take part in international tax cooperation through the Department for International Tax Cooperation. Take advice in your home country before you rely on any structure.
Finding help with the set-up in the Cayman Islands
Accountanty lists 15 firms in the Cayman Islands, all based in George Town: 10 corporate services providers, 3 law firms and 2 accounting firms. Ten of them name foreign clients as a focus, and funds and family offices are the industries they mention most often (9 firms each). Seven name English as a working language, three offer Chinese and three Spanish. If you want a firm used to clients from abroad, start with the accountants for foreign clients list.
To compare offers without writing to each firm, send a free quote request through Accountanty. We review it and forward it to firms that fit your company.
Verdict
The legal steps are few and fixed: a licensed registered office, identity checks, a name, the memorandum and articles, and the registration fee. The decisions that shape the company come earlier, especially whether an exempted company fits where you will trade. Settle the type and the provider first, put the January deadline in your calendar, and you can set up a company in the Cayman Islands with its yearly duties planned from day one.