Opening a recruitment company in the Cayman Islands is useful to help other businesses find and hire the right candidates, especially for positions requiring specific skills or experience. The incorporation process is straightforward and the jurisdiction offers several tax benefits to entrepreneurs. Our Cayman Islands incorporation specialists can guide you through the entire process to ensure your recruitment company meets all legal requirements.
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Legal structure for opening a recruitment company in the Cayman Islands
Since the recruitment business will operate locally and provide services within the jurisdiction, opening a Cayman Islands exempted company is not possible. This structure is primarily used for international business activities and entities not engaging in local trade. It is more suited for offshore operations.
To set up a recruitment company in the Cayman Islands, you would need to establish it as an ordinary/resident/local company. This legal structure allows businesses to conduct local activities.
Domestic companies must adhere to the Local Companies (Control) Act (LCCA) and the Trade and Business Licensing Act (TBLA). Therefore, before opening a recruitment company in the Cayman Islands, you must first obtain an LCCA and TBLA license. The LCCA license is not required if at least 60% of the recruitment company is owned and controlled by Caymanian citizens. Applying for the licenses can be quite complex and requires submitting an application, cover letter, and other supporting documents to the Trade and Business Licensing Board. It is also necessary to pay the licensing fees. Our Cayman Islands company formation specialists can handle this process on your behalf.
Setting up a recruitment company in the Cayman Islands as a local company demands at least one shareholder, one director, and one secretary. It must also have a registered office in the Cayman Islands.
Additionally, the local company needs to submit a return of shareholdings to the Registrar of Companies before commencing business and also on an annual basis. The company must also provide certified copies of several key documents, which our specialists in company incorporation in the Cayman Islands can help with.
Taxation of companies in the Cayman Islands
One main reason for opening a recruitment company in the Cayman Islands is that there are no direct taxes such as personal or corporate income tax or capital gains tax. Additionally, the jurisdiction does not have a Value Added Tax (VAT) or Goods and Services Tax (GST). There are also no social security contributions.
The only taxes are for import duties on goods brought into the territory, which do not apply to a recruitment company. The 7.5% stamp duty is applied to certain transactions, such as the transfer of real estate or shares.
Our team can explain more about how to set up a Cayman Islands company and take advantage of the tax benefits.
Statistics about employment in the Cayman Islands
Entrepreneurs looking to open a recruitment company in the Cayman Islands can find the following statistics useful. The information refers to the Caymanian population and employment as provided by the Spring 2023 Labour Force Survey (LFS):
- The total number of employed individuals in the Cayman Islands was 57,266;
- This number includes 21,615 Caymanians;
- 3,902 employed individuals were Permanent Residents with Right to Work (WRW);
- 31,749 non-Caymanians were employed.
In case you need additional services provided by our team, we can also help with immigration in the Cayman Islands.
Do not hesitate to contact our team if you are interested in setting up a recruitment company in the Cayman Islands.