Opening a subsidiary in the Cayman Islands is a great opportunity for businesses that wish to expand their operations internationally. Many companies also establish subsidiaries in the Cayman Islands as holding companies for their investments or other valuable assets. A subsidiary established in the country can be structured as a Cayman Islands exempted company. Our team of company formation specialists can help you in detail with this process if you are interested in expanding your business to the Grand Cayman in 2024.
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How to establish a subsidiary in Cayman Islands
The general process of establishing a subsidiary in Cayman Islands includes:
- Deciding the proper type of legal entity for your subsidiary (exempted company, limited liability company, limited partnerships, etc.);
- Choosing your company name, which must be unique and comply with the jurisdiction’s naming requirements;
- Complete the incorporation application and submit the necessary documents;
- Obtain the consent forms from directors, shareholders, and other key personnel who have specific roles within the newly established subsidiary.
Subsidiaries in Cayman Islands are regulated by the General Registry. Like in many jurisdictions, a subsidiary is a separate legal entity from its parent company. The subsidiary can enter into contracts, own assets, and assume liabilities in its own name.
The incorporation procedure is relatively simple and straightforward, and our specialists in company incorporation in Cayman Islands will offer support in each step of this process if you plan on establishing the subsidiary in 2024.
Documents needed to set up a subsidiary in Cayman Islands
Some documents play a crucial role in the incorporation process and provide the necessary legal framework for your subsidiary’s operations. Our Cayman Islands company formation specialists have highlighted the most important ones:
• Memorandum of Association;
• Articles of Association;
• proof of registered property address;
• information on shareholders and directors (IDs or passports, addresses, etc.).
We can help you gather all relevant documents for opening a subsidiary in Cayman Islands and we can also help you open a company in Cayman Islands, no matter its type.
Advantages of setting up a Cayman Islands subsidiary
Opening a subsidiary in the Cayman Islands can offer several advantages, particularly for international businesses and investment activities.
One of the main advantages is that Cayman Islands is known for its favorable tax environment, as there are no direct taxes on income, capital gains, corporate profits, or inheritance. This can lead to potential tax savings for your business and investments.
The Cayman Islands government has issued no foreign exchange controls, providing flexibility for international transactions and currency management.
Subsidiaries can provide a layer of protection for assets, as they are legally separate entities from their owners. This separation can help shield assets from potential risks, liabilities, and legal claims. They can also engage in a wide range of international business activities, including investment holding, trading or consulting.
Opening a company in Cayman Islands in 2024 is a straightforward, simple process. This can make it easier for businesses to establish and operate a subsidiary, saving plenty of time and effort in this process. Starting a business in Cayman Islands can take no more than 4 days compared to other countries, such as Kuwait where it can last 3 months.
The country maintains strong financial privacy and confidentiality. Financial information and details about the ownership and management of companies in Cayman Islands are often kept confidential.
Why invest in Cayman Islands?
Ultimately, establishing a subsidiary or a company in the Cayman Islands in 2024 is a great idea, proven by these statistics:
- Over 11,000 new companies were opened in 2022;
- In total, there were over 119,000 active companies in the country;
- 81.2% of the total active businesses were exempted Cayman Island companies.
As per the latest annual economic report issued by the Economics and Statistics Office for the year 2022, the real gross domestic product expanded by 3.8 %, and visitor arrivals to the Islands contributed to positive economic growth. Other data shows that:
- the services sector drove most of the economic performance in 2022, accounting for 89.4% of the GDP (an increase of 3.7% compared to the previous year);
- robust growth was also recorded in the accommodation and restaurants sector (a 23.2% increase) and transport, storage, and communication (an increase of 11.4%).
Please contact our team if you are interested in learning more about opening a subsidiary in Cayman Islands or need assistance in any legal matter.