Location
The Cayman Islands consists of a group of three islands in the Caribbean: Little Cayman, Cayman Brac and Grand Cayman. The main Island, Grand Cayman, is situated approximately 480 miles southeast of Miami.
Political Structure
The Cayman Islands are a British colony and therefore the United Kingdom Parliament at Westminster retains the right to legislate. A “Governor” who is appointed by the Queen Elizabeth II heads the Cayman Islands Government. There is a Legislative Assembly consisting of 18 seats: 3 appointed members from the Executive Council (Financial Secretary, the Attorney General and Administrative Secretary) and 15 members elected by the popular vote.
An Executive Council, consisting of three official members appointed by the Governor and four members elected by the Legislative Assembly, formulates policy and advises the Governor. Appointments are to a four-year term.
Economy and Infrastructure
The economy of the Islands is strong, enjoying full employment with most of the revenue being derived from the financial services sector and tourism.
Miami is one hour away by air and the Island has direct air links with New York, Atlanta, Tampa, Houston and Jamaica. The Islands are a popular cruise-ship stop.
Population, Language and Culture
The population is approximately 55,000.
The official and spoken language is English.
Exchange Control
None.
Type of Law
Common Law based on English Common Law.
Principal Corporate Legislation
The Company Law of the Cayman Islands is based on the English Companies Act of 1948 and can be found in the Cayman Islands:
Companies Law 1961
Companies Law (2007 Revision)
Companies (Amendment)(No 2) Law 2009
Companies (Amendment) Law 2011
Companies (Amendment) Law 2013
Taxation and Fees
There is no form of taxation in the Cayman Islands relating to individuals, corporations or trusts.
The Cayman Islands has no double tax agreements.
Licence Fee
For exempt companies:
For a share capital not exceeding US$50,000: US$854
With a share capital greater than US$50,000 but not exceeding US$1 million: US$1,220
With a share capital greater than US$1,000,000 but not exceeding US$2 million: US$2,420
Financial Statements Required
Companies (Amendment) Law 2010 states that “Every company shall cause to be kept proper books of account including where applicable, material underlying documentation including contracts and invoices. Such documentation must be retained for a minimum period of five years from the date on which they are prepared”. Failure to retain such records shall be subject to a penalty of $5,000.
Unregulated exempt companies do not need to file accounts.