Cayman Islands Company Formation
Register a Cayman Exempted Company in 1–2 weeks. 0% tax guaranteed for 20 years. CIMA regulated. World’s #1 fund domicile. Institutional credibility. From USD $6,000.
Why form a company in the Cayman Islands?
The Cayman Islands is the world’s fifth-largest financial centre and the #1 global domicile for hedge funds, private equity funds, and structured finance vehicles. Over 80% of the world’s hedge funds are Cayman-domiciled. The jurisdiction provides institutional-grade credibility recognized by every major bank, prime broker, and institutional investor globally.
Exempted Companies receive a 20-year tax exemption certificate guaranteeing that no income tax, capital gains tax, or withholding tax will be imposed for 20 years from the date of incorporation. This provides the strongest tax certainty of any offshore jurisdiction.
The Cayman Islands Monetary Authority (CIMA) provides comprehensive regulatory oversight for financial services including mutual funds, insurance, banking, and securities. CIMA regulation gives Cayman entities a level of institutional credibility that is unmatched by other Caribbean or offshore jurisdictions.
The legal system is based on English common law, with the Privy Council in London serving as the final court of appeal. Cayman has a sophisticated body of company law, trust law, and insolvency law specifically designed for international financial structures. The jurisdiction has no exchange controls and no restrictions on the repatriation of profits.
Cayman Exempted Company
Exempted Company
MOST POPULARThe Exempted Company is the most common Cayman entity for international businesses. It requires a minimum of 1 shareholder and 1 director (any nationality), a registered office in Cayman, and no minimum capital requirement. The company is “exempted” from the requirement to maintain a register of members open to public inspection. It cannot conduct business within the Cayman Islands itself.
Best for: Hedge funds, PE funds, holding companies, SPVs, structured finance, insurance, crypto fund structures.
Detailed cost breakdown
Cayman company formation includes government registration fees, registered office fees, and professional service fees. Government registration fees range from approximately CI$750 to CI$2,400 depending on authorized share capital. Our all-inclusive package at USD $6,000 covers government registration, MOA and AOA, registered office (first year), 20-year tax exemption certificate, and all statutory filings.
| Service | Fee |
|---|---|
| Exempted Company (all-inclusive) | From USD $6,000 |
| Registered office (annual) | From $2,000 |
| Nominee director (annual) | From $3,000 |
| Bank account opening | From $1,500 |
| CIMA fund registration | From $15,000 |
| Annual government fee | From $1,000 |
| Economic substance filing | From $800 |
Cayman tax structure
The Cayman Islands has no income tax, no corporate tax, no capital gains tax, no withholding tax, and no payroll tax. Exempted Companies receive a 20-year tax exemption certificate upon incorporation, providing guaranteed tax neutrality for two decades. There are no exchange controls and full freedom to repatriate profits. Cayman has no DTA network, as the jurisdiction has no direct taxes to negotiate treaties against. For structures requiring treaty access, combine with a Singapore or Hong Kong operating entity.
Cayman Islands fund domiciliation
Cayman is the dominant global jurisdiction for investment funds. CIMA regulates three main categories: Registered Funds (minimum US$100,000 investment per investor, simpler registration process), Licensed Funds (for retail or public offering, requires full CIMA license), and Private Funds (limited to 15 investors or where investment decisions are made by investors themselves). The Segregated Portfolio Company (SPC) structure allows multiple investment portfolios to be held within a single legal entity, with each portfolio ring-fenced from the liabilities of other portfolios.
For crypto and digital asset funds, Cayman provides a recognized and familiar legal framework that institutional allocators and prime brokers are comfortable with. Many of the largest crypto funds globally are Cayman-domiciled.
Annual compliance requirements
Cayman vs BVI vs Bermuda
Cayman, BVI, and Bermuda are the three premier offshore financial centres. Cayman dominates for fund structures (80%+ of global hedge funds), SPVs, and institutional finance due to CIMA regulation. BVI is preferred for holding companies, trading structures, and asset protection at a lower cost ($3,000 vs $6,000). Bermuda specializes in insurance and reinsurance with a strong regulatory framework. For institutional fund structures, Cayman is the default choice. For simpler corporate structures, BVI offers better value.
Cayman Islands company formation FAQ
How much does Cayman company formation cost?
Government registration fees range from CI$750 to CI$2,400 depending on share capital. Full-service packages from USD $6,000 including registration, MOA, registered office (1st year), and 20-year tax exemption certificate. Annual costs include registered office ($2,000+/year) and government fees ($1,000+/year).
Why choose Cayman over BVI?
Cayman is preferred for institutional fund structures and regulated financial services due to CIMA oversight. Over 80% of hedge funds are Cayman-domiciled. BVI is better for simpler holding and trading structures at lower cost ($3,000 vs $6,000). Choose Cayman for institutional credibility and fund structures. Choose BVI for general corporate use.
Is there a 0% tax guarantee?
Yes. Exempted Companies receive a 20-year tax exemption certificate guaranteeing no income tax, capital gains tax, or withholding tax will be imposed. This is the strongest tax certainty of any offshore jurisdiction and is a key reason institutional investors prefer Cayman structures.
What is CIMA?
The Cayman Islands Monetary Authority is the financial services regulator. CIMA oversees funds, insurance, banking, and securities. CIMA regulation provides the institutional credibility that makes Cayman the world’s #1 fund domicile and gives investors confidence in the regulatory framework.
How long does formation take?
1-2 weeks for standard Exempted Company registration. Express service available for urgent needs. Fund structures requiring CIMA registration may take 4-8 weeks depending on the fund type and complexity.
What annual compliance is required?
Annual Return filing with the Registrar, annual government fee, registered office maintenance, economic substance reporting (for companies with relevant activities), and beneficial ownership filing. No audit requirement for non-regulated Exempted Companies.
Can I open a bank account?
Yes. Cayman companies are accepted by all major global banks. Local Cayman banks, as well as international banks in Hong Kong, Singapore, Switzerland, and the US readily accept Cayman entities. Fund structures benefit from established prime brokerage relationships.
Is Cayman suitable for crypto funds?
Yes. Cayman provides a recognized legal framework for crypto and digital asset funds. Many of the largest crypto funds globally are Cayman-domiciled. CIMA provides regulatory oversight that institutional allocators require. The Segregated Portfolio Company structure is particularly popular for multi-strategy crypto funds.
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