Source-cited draft: company formation & entity choice for Cayman Islands (tax year 2025) — rates, thresholds and rules with primary-source citations. Unverified; pending local-accountant review.
Source-cited draft.Written from sources but not reviewed by a licensed practitioner, so it may be incomplete or wrong. General reference only; don't file or take a position on it without professional review.
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Every figure is drawn from this Tax Guide and cited to its source.
Common entity types
Exempted company; ordinary resident/non-resident company; exempted limited partnership (ELP); limited liability company (LLC); segregated portfolio company (SPC); foundation companyCompanies Act (2025 Revision) (Cayman Islands) — https://www.harneys.com/our-blogs/regulatory/cayman-islands-companies-act/
Most common offshore vehicle
Exempted company — may not carry on business with the public in Cayman except in furtherance of business carried on outside the IslandsCompanies Act (2025 Revision) (Cayman Islands) — https://multilaw.com/Multilaw/Multilaw/Global_Business_Entities_Guide/Cayman_Islands_-_Exempted_Company.aspx
Minimum share capital
None — there is no statutory minimum share capital; companies are commonly authorised with a nominal capital (e.g. US$50,000) to stay in the lowest annual-fee bandCompanies Act (2025 Revision) (Cayman Islands) — https://multilaw.com/Multilaw/Multilaw/Global_Business_Entities_Guide/Cayman_Islands_-_Exempted_Company.aspx
Minimum directors / shareholders
At least one director and one shareholder; no residency requirement and corporate directors are permitted ((confirm current minimums))Companies Act (2025 Revision) (Cayman Islands) — https://multilaw.com/Multilaw/Multilaw/Global_Business_Entities_Guide/Cayman_Islands_-_Exempted_Company.aspx
Registered office
Required — every company must maintain a registered office in the Cayman Islands, normally provided by a licensed corporate services providerCompanies Act (2025 Revision) (Cayman Islands) — https://www.harneys.com/our-blogs/regulatory/cayman-islands-companies-act/
The Cayman Islands is a leading offshore incorporation centre. The most common vehicle for non-resident business is the exempted company, alongside exempted limited partnerships and LLCs. There is no minimum share capital and no corporate tax, but companies pay annual government fees and must keep a registered office and statutory registers.
Other Cayman Islands computations in the OpenAccountants Tax Library.
Incorporation timeline
Typically 1–5 business days for standard registration; expedited same/next-day service available for an additional express fee ((approx — confirm))General Registry — Cayman Islands — https://www.ciregistry.ky/fees/
Name reservation fee
Between US$49 and US$195 to reserve a company name for up to four months, depending on the reservation periodCompanies Act (2025 Revision) — Fees Regulations (Cayman Islands) — https://www.ciregistry.ky/fees/
Initial / annual government fee — band 1
Exempted company with no registered capital or registered capital up to CI$42,000: CI$925 annual fee (increased from CI$825, effective 1 January 2025)
Initial / annual government fee — band 1
Exempted company with no registered capital or registered capital up to CI$42,000: CI$925 annual fee (increased from CI$825, effective 1 January 2025)
Annual government fee — band 2
Exempted company with registered capital over CI$42,000 up to CI$82,000: CI$1,225 annual fee (increased from CI$1,125, effective 1 January 2025)Companies Act (2025 Revision) — Fees Regulations (Cayman Islands) — https://www.harneys.com/our-blogs/regulatory/cayman-islands-proposed-changes-in-partnership-and-company-fees-takes-effect-from-1-january-2025/
Annual return filing
Every company must file an annual return and pay the annual government fee in January each year following its year of registrationCompanies Act (2025 Revision) (Cayman Islands) — https://www.ciregistry.ky/fees/
Beneficial ownership register
Most Cayman companies must maintain an adequate, accurate and current beneficial ownership register and file required particularsBeneficial Ownership Transparency Act (Cayman Islands) — https://www.harneys.com/our-blogs/regulatory/cayman-islands-companies-act/
Economic substance / annual compliance
In-scope entities must file an annual economic substance notification and (where carrying on relevant activities) an ES return; CRS/FATCA reporting applies to financial institutionsInternational Tax Co-operation (Economic Substance) Act (Cayman Islands) — https://taxsummaries.pwc.com/cayman-islands/corporate/other-issues
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