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Foreign Company

Do foreign entities do business in the Cayman Islands? Well, in short, of course they do! Cayman Foreign Companies represent a significant chunk of the business done in these here isles – and we’d like to let you know that business is robust and that business is good.

A Bit About A Non-Resident Foreign Business

Generally speaking, a “Cayman Islands non-resident company” is generally defined as an “ordinary non-resident company”. Simply put, the Cayman Islands Companies Law governs these companies and any foreign person can own a “non-resident company”! There are a few rules though, as is tradition. Firstly these companies are barred from engaging in trade within the borders of the Cayman Islands. BUT, they can execute contracts in Cayman in order to do business outside of the islands. That’s an important caveat. For example – you can engage tourists to assist them in the formation of legal entities. You can also engage with local service providers to maintain the needs of your business. A/C broken? All good. Need high-speed Internet or trash removal? Also within your purview. A Certificate of Non-Residency will be issued by the financial secretary upon approval that your company will not explicitly engage in trade activities within the borders of the Cayman Islands.

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What Are The Benefits Of Being A Foreign Company In The Cayman Islands?

There are actually quite a few attractive benefits to being a foreign company doing business in the Cayman Islands. We’ll go ahead and list a few key benefits for you now:

You can own your own company. You can own your entire company in many instances.
Zero taxation. Your homeland might ascribe to the “global taxation” framework but we do not. You are required to adhere to your homeland’s tax structures for the record.
Limited shareholder liability.
Directors and shareholders names are not part of the public record. If you’re a “nominee shareholder” these rules do not necessarily apply to you.
Zero minimum authorized capital.
Only one shareholder required. Same for directors.
Zero reporting. No returns, audits or annual account reporting requirements.

What Is A Foreign Company Then?

A foreign company is a company incorporated outside of the Cayman Islands. Pretty simply put. Registration of a foreign company is pursuant to “Part IX of the Companies Law “ and is necessary to allow overseas companies to hold land or carry on normal business activities in the Cayman Islands (or to act as the general partner of a Cayman Islands Exempted Limited Partnership).

How Do I Register My Foreign Company In The Cayman Islands?

To register your foreign company in the Cayman Islands you need to do a few things. Get a few things together. These things are as follows:

Obtain a certified copy of your foreign company’s certificate of formation or incorporation (or the equivalent documentation issued by the relevant authority as evidence of its formation).
Obtain a certificate of good standing issued by the relevant authority or, if you cannot obtain a certificate of good standing, a declaration signed by a director of your company that your company is in good standing with the relevant authority in your jurisdiction.
Obtain a certified copy of any charter or by-laws or memorandum or articles of association or other constitutive documents of your company.
Provide a list and specified details of the directors. I.E. the names and addresses of a person resident in the Cayman Islands who is authorized to accept service of process and any other type of notice on behalf of the company.
Pay that money (aka the requisite fee).

Foreign companies do business in the Cayman Islands and have done so for many years. It’s a highly robust and growing part of our island’s economy and is projected to be so for years and years to come. A supportive government and business community provide a wealth of opportunities to incentivize international entities to choose our shores as a place to conduct business. Do business in the Cayman Islands – it would be to your direct disadvantage to not consider it.