Offshore · Company formation
Company formation in Cayman Islands
For investment funds, holding companies, and cross-border SPVs seeking tax neutrality.
At a glance
- Entity
- Exempted company (company limited by shares, "Ltd")
- Corporate tax
- 0% — no corporate income, capital gains, payroll or withholding tax; a 20-year tax-exemption undertaking (extendable to 30) is obtainable
- Incorporation time
- 3–5 business days standard; 1–2 days on the express service (as of 2026)
- Minimum capital
- None; commonly US$50,000 authorised (50,000 shares at US$1), the ceiling of the lowest fee tier
- Resident director
- Not required; a minimum of one director of any nationality or residence
- Audit
- Not required for a plain exempted company; mandatory for CIMA-regulated funds
- Remote set-up
- Yes, fully remote through a licensed Cayman registered agent
- Government fee
- From US$853 (KYD 700) registry incorporation fee, tiered by authorised share capital; +US$610 for express incorporation (as of 2026)
- Best for
- For investment funds, holding companies, and cross-border SPVs seeking tax neutrality.
The process
- Engage a licensed Cayman registered office/agent (mandatory) and clear KYC/AML on the beneficial owners
- Reserve and clear the proposed company name with the General Registry
- File the Memorandum and Articles of Association with the Registrar of Companies
- Pay the incorporation fee, tiered to authorised share capital (express service available for faster registration)
- Receive the Certificate of Incorporation, appoint director(s), issue shares and maintain statutory and beneficial-ownership registers
- File the Economic Substance Notification, apply for the tax-exemption undertaking, then open a bank account
What can go wrong
- Economic substance regime: entities carrying on a 'relevant activity' (e.g. holding, fund management, financing, IP) must be directed and managed in Cayman, conduct core income-generating activity locally, and file an annual ES notification/return with the DITC.
- A registered office and licensed agent are compulsory and recur annually; an annual return and government fee fall due each January.
- Tax neutrality does not travel: home-jurisdiction CFC and place-of-effective-management rules, plus OECD Pillar Two (15% minimum for large groups), can claw back the benefit — take home-country advice.
- Cayman-regulated funds require CIMA registration, a Cayman-approved auditor and CIMA fees; substance-light banking access has tightened, so budget lead time to open accounts.
Popular relocation routes
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Form a company in Cayman Islands?
One named person on the file, an honest read on tax and substance, and a fixed quote before you commit.