Cayman Islands Companies: The Asia Connection

Gene A. DaCosta • Posted 19/11/2010 • Under Articles

The Cayman Islands has, in recent times, proved itself an increasingly popular jurisdiction for the incorporation of companies owned or operated by parties located in Asia. There are a number of reasons for this popularity.

Cayman has no corporation tax, income tax, capital gains tax, inheritance tax, gift tax, wealth tax, or any other tax applicable to a company conducting offshore business although certain documents are subject to (generally nominal) stamp duty. Tax planning for Cayman exempted companies can also be greatly enhanced through the ability of all exempted companies to receive a “Tax Exemption Undertaking”, generally granted for a period of twenty years, pursuant to which such companies are exempt from any possible future Cayman taxes.

There is no exchange control in the Cayman Islands and Cayman companies are free to acquire, hold and sell foreign currency and securities without restriction. Nor is there any restriction on the nationality of the directors or shareholders of an exempted company, meaning that responsibility for the management of a Cayman company can largely rest with its board of directors.

Read more in the article below.