Cayman Islands, Offshore Company's Choice
Posted by: Jack | 2016-12-16 09:21:10
Cayman Islands is the fourth offshore financial center as well as a famous diving resort. Most of you may ask what offshore company is. It means a legal entity which has no business in registration place. The local governments do not tax such companies but only take a few annual management fees.
Thus, for its attractive policy, most people who know Cayman Islands would register a company here including Internet companies.
1.People over 18-year-old of any nationality can register.
2.Registered capital is $50000 without capital verification(This may be the reason why Internet companies tend to register here for its small company scale).
3.British Common Law is used and the corporation form is Exempt Corporation.
4.Exempt Corporation is equivalent to no tax in local, so it is good for tax evasion.
5.All information of shareholders will be kept in strict confidence.
6.Annual general meeting is no need(can save lots of troubles).
7.All financial service giants imaginable had registered in Cayman because they are not restrained by some complicated policies(It means that you can register in mainland but needn't a transnational company account because you can just operate at the giants'branches).
8.Only one shareholder and one director can register a company. Moreover, the shareholder and director can be the same person(I think you may interest in it).
9.You can use any word to the name of your company(but you need to apply if use trust or reinsurance), such as university, graduate school and global and federation limited by domestic can also be used.
10.There is no limit on company purposes except bank, insurance and military which need application. You can do whatever you want(Oh, gosh. How free you will be).
11.You can enjoy foreign capital treatment and directly invest after registration(Such as stake, joint venture and single proprietorship).
12.It is convenient to suspend a company if burdening great financial pressure. Cayman allows suspending company at any time, what you need to do is to give annual subscription fee and annual examination fee.
Many people tend to have a try now. Some net friends may want to ask that what matter should be paid attention to. Now, let me share with you.
Laws and taxes
First of all, the company regulation in Cayman Islands bases on British Common Law. The Exempted Company can exempt all company taxes(This is the most important reason why attractiveness) and can apply for a Tax Exemption Certification which is valid until 20 years later to further confirm the exemption identity.
Matters need to attention
Standard authorized capital is ＄50000 and there is extra fee fore more capital stock. Bearer shares are forbidden and not need to disclose company information to public. Shareholder or director meeting can be hold in any place in the whole world. Annual declaration is a must but needn't to audit(I have shared to you at the beginning).
Fees and time
Besides, the registration fees of standard shares ($50000) are RMB28000(More registered capital will cost extra), but registration is completed 20 workdays later when prepare all company files in need.
At last, when registering, we need to notarize and certificate files, provide recommendation letters from lawyers, apply offshore accounts, provide incumbency certification of director, and revise requisite files. The company which had completed registration can be offered follow-up services such as anonymity shareholders or director service, overseas trust service, files revise and virtual offices and so on.
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