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Company Formation

Starting Your Business in the Cayman Islands

Considering relocating your business to the Cayman Islands? The first step is determining which type of company best suits your business needs. This can be a bit overwhelming, but don’t worry—professional advisors and attorneys are available to guide you through the process of forming your Cayman company. Let’s dive in!

In general, there are two main types of corporate entities in the Cayman Islands: Exempted Private Limited Companies and Limited Liability Companies (LLCs).

When it comes to an Exempted Private Company, there are a few key restrictions on naming. Your company name cannot be identical to an existing registered company or any translated name on the register. It also cannot be similar to a name in a way that may cause confusion or deceive. For example, registering a name like “Coca-Cola” or a variation in another language (Chinese, French, etc.) is prohibited. However, if the existing company is being dissolved and consents to the use of its name, an exception can be made.

Additionally, the Registrar of Companies in the Cayman Islands has specific guidelines regarding company names. For instance, the words “Chamber of Commerce” cannot be used in the company name unless the company is specifically licensed by the Governor of the Cayman Islands and is not required to include “Limited” or the abbreviation “Ltd.” in its name. The same applies to names including “building society.”

With this in mind, you’ll be ready to begin the process of setting up your business in the Cayman Islands!

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While it may seem technical, these rules are crucial to understand when starting a business in the Cayman Islands. For example, you will need approval from the Cayman Islands Registrar if you wish to form a company with a name containing words like “royal,” “imperial,” or “empire,” or anything that could suggest association with Her Majesty The Queen or any member of the British Royal Family.

Additionally, using terms such as “municipal,” “chartered,” or any words that imply links to local authorities or bodies incorporated by Royal Charter is prohibited. Words like “cooperative,” “bank,” or “insurance” also require specific approval. Furthermore, terms like “gaming,” “gambling,” or “lotteries” are strictly off-limits and will not be accepted for your business name.

These foundational regulations are just the beginning, but they are essential for navigating the company formation process in the Cayman Islands. We’ll explore more specific guidelines in future posts, so stay tuned!

LLC Formation in the Cayman Islands: What You Need to Know

LLCs have pretty much the same rules as Exempted Private Limited Companies. You cannot have a name that is identical to another company unless they are being dissolved and it has given you significant permissions to do so. You can also not set up an LLC that is named with the intent to mislead and deceive. So no tomfoolery here ladies and gentleman! Once you decide which type of company works best for you what do you need to submit to begin the process? Glad you asked. Firstly, you will need to submit some general information about your company including who will be the Director(s), Shareholders and what everyone’s share ratios are (i.e. who owns how much stake in your new Cayman Islands company?). You are also going to need to define what types of services you will need for your company. These can be a bank account linked to the business, nominee services, a physical office need or an address where your company will be located, accounting services or the need to register any intellectual property or trademarks you may hold. Once you determine what services you will need for your new Cayman Islands company you will need to determine how quickly you want to have this company officially up and running. These time frames are not that long and a normal company can be formed in as little as four business days. Should you be in a rush – some requests can be fulfilled in as little as two business days provided you have submitted all the required documentation and paid all the requisite fees. Typically these fees are paid by bank transfer, a major credit card or via transfer methods like PayPal. Just remember, if you are paying for your company formation via transfer from Europe or Asia it will take longer for your funds to land on the island and clear.

Forming a company in the Cayman Islands is a relatively easy and straightforward process and we’ll delve a bit more into it in future posts. The important thing to remember is that you must have your paperwork in order and the company you are forming must be in good standing and have an appropriate name that is not meant to confuse or deceive. There are many companies and law offices on the island that can assist you in setting up your company so the best bet is to reach out to one of them for the latest regulations and the proper steps. Setting up a company in Cayman is relatively easy business and business is good!

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