• Location: Situated as a British Overseas Territory around 400 kilometers from Miami, Florida, in the Caribbean Sea.
• Population: Approximately 40,000 residents.
• Language: English is the primary language spoken.
• Legal System: Governed by an International Business Law framework.

In the Cayman Islands, offshore companies, also known as exempted companies, are subject to specific legal requirements and regulations. Some of the key legal requirements for offshore companies in the Cayman Islands include:

• Incorporation Documents: Offshore companies must submit certain incorporation documents, such as the Memorandum and Articles of Association, to the Cayman Islands Registrar of Companies during the incorporation process.
• Registered Office and Registered Agent: Offshore companies are required to have a registered office address in the Cayman Islands, which serves as the official address for legal and administrative communications. They must also appoint a registered agent in the Cayman Islands who can receive legal notices and official correspondence on behalf of the company.
• Directors and Shareholders: Offshore companies in the Cayman Islands must have at least one director, who can be an individual or a corporate entity. There are no specific nationality requirements for directors or shareholders, and they can be of any nationality. However, details of directors and shareholders are not publicly disclosed.
• Annual Filings: Offshore companies are required to file an annual return and pay an annual government fee to the Cayman Islands Registrar of Companies. The annual return includes details such as the company’s directors, shareholders, registered office address, and share capital.
• Corporate Governance: Offshore companies are expected to adhere to good corporate governance practices, including maintaining accurate and up-to-date corporate records, holding annual general meetings (AGMs), and keeping minutes of board meetings.
• Compliance with Laws and Regulations: Offshore companies must comply with all relevant laws and regulations in the Cayman Islands, including company law, anti-money laundering (AML) regulations, and tax laws. They are also subject to regulatory oversight by the Cayman Islands Monetary Authority (CIMA) and other regulatory bodies.
• Financial Statements: While there is no requirement to file financial statements with the Cayman Islands authorities, offshore companies are required to maintain proper accounting records and prepare financial statements in accordance with generally accepted accounting principles (GAAP) or International Financial Reporting Standards (IFRS).

To incorporate a company in the Cayman Islands, you need at least one director and one shareholder (who can be the same person), with the company name being unique. The company must also have a registered office in the Cayman Islands. There are no minimum capital requirements for incorporation, and the company can be owned 100% by foreign nationals.

The most common type of company incorporated in the Cayman Islands is an “Exempted Company.” This type of company is typically used for international business activities and is exempt from local taxation. For investment funds, a “Segregated Portfolio Company” (SPC) may be suitable. The choice depends on the client’s business model, and an exempted company is usually ideal for most foreign-owned businesses looking to operate internationally.

The incorporation process typically takes 1 to 3 business days, depending on the complexity of the business structure and the submission of necessary documentation. Once the registration is completed, the client will receive the Certificate of Incorporation, allowing the company to start operations almost immediately.

After incorporation, companies must maintain their registered office and have a local representative, such as a company secretary. While there are no annual audit requirements for most companies, they must file annual returns and pay an annual fee to the Cayman Islands Government. Companies must also maintain accurate records of their beneficial owners. For certain business activities, additional reporting may be required.