Lorna Carroll – Cayman Islands

Lorna Carroll – Cayman Islands

Why Cayman?
The Cayman Islands have long since been a popular tourist destination due to its beautiful beaches, turquoise waters and abundance of marine life but there are two sides to that coin and the Cayman Islands remain at the forefront of the global financial industry.

What makes it a favourable jurisdiction for many businesses and investors?
Several reasons actually:

Favorable Tax Regime: The Cayman Islands is known for its tax neutrality. It currently has no corporate tax, capital gains tax, income tax or withholding tax.

Robust Regulatory Framework: The Cayman Islands are very consistent in their approach to the regulatory landscape and are a member of the Caribbean Financial Action Task Force (CFATF). They are a jurisdiction that have been, and continue to be, very proactive in aligning their regulatory framework with the Financial Action Task Force (FATF) international standards to prevent money laundering, terrorist financing and tax evasion. In addition, over the past number of years with a global focus on beneficial ownership, economic substance and tax transparency, the Cayman Islands fully committed to and implemented legislation and/or adhered to global initiatives on those topics.

 Legal System: The Cayman Islands legal system is based on English common law, supplemented by local legislation. The courts are very experienced and well-developed.

Mature Financial Services Industry: The Cayman Islands are a leading offshore financial centre and are known for its expertise in structured finance, investment funds, banking, insurance, and other financial services. In 1996, the Cayman Islands Stock Exchange (CSX) was established which provides a competitive listing facility for mutual funds, debt securities and other structured products in the Cayman Islands. In addition, Cayman entities can be formed quickly, often on the same day of filing, once compliance requirements are satisfied. This speed and efficiency make it a convenient choice for businesses.

Political and Economic Stability: The Cayman Islands is a British Overseas Territory and benefits from a stable government and political environment.

Costs of doing business: Generally, the costs of doing business are less than other popular financial services centres. There is no requirement as a matter of Cayman Islands law for a Cayman Islands unregulated exempted company to appoint an auditor or file audited financial statements with any governmental body within the Cayman Islands.

Author: Lorna Carroll, Director and Head of Capital Markets Services Cayman Islands and graduate of the BA Accounting and Finance