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CAYMAN ISLANDS COMPANY FORMATION
Cayman Islands Company Formation Guide
The Cayman Islands do not impose taxes on income, capital, capital gains or sales, and there is no withholding tax, inheritance or gift tax. The Cayman Islands' main sources of taxation are customs duties, stamp duty on land and real estate transfers, and other indirect taxes, and there is no exchange control.
The Cayman Islands classifies companies that operate outside the Cayman Islands as exempted companies under its company law, and the benefits are as follows.
- No taxation for 20 years.
- At least one shareholder can be registered, and the registered shareholders do not have to be registered with the company registry.
- No par value shares can be issued.
- The company name must be in English only, and the abbreviation “Limited” or “Ltd.” must be written after the company name.
- There is no obligation to convene an annual general meeting and board of directors meeting.
- The annual reporting obligation is simplified, and the directors or secretary can handle the matter in writing in compliance with Article 193 of the Companies Act and in the event that business activities occur outside of the Cayman Islands.
Requirements and documents to be prepared for incorporation:
1. A copy of the passport of the shareholder/director
2. Original verification of the copy of the passport of the shareholder/director
- Korean passport: A copy of the English passport (issued by the district office or city hall) ( See sample )
- Passport of other countries: Certified True Copy or Notarial Certificate ( See sample )
3. Two types of recent (within 3 months) English address verification documents for shareholders/directors (addresses must be the same)
- Living in Korea: English certified copy of resident registration (from the community service center) + front and back scans of driver's license (View sample)
- Living in another country: Utility bill + bank statement (or equivalent official document) (View sample)
4. Fill out the application for incorporation (View the application form)
Procedure:
1. Submit the application for incorporation and required documents
2. Check compliance with KYC and due diligence
3. After confirmation of the engagement, issue an invoice and pay the fee
4. Fill out the incorporation registration documents, articles of incorporation, and other documents and send them to the client by email (1-2 business days)
5. Print and sign the document and send it to us (1-2 business days)
6. Receive the incorporation registration documents and proceed with the incorporation (3-5 business days)
7. Produce the company kit and nameplate (2-5 business days)
8. Once the incorporation and production of the company kit and nameplate are complete, we will send them to you.
Estimated time required: 8-13 business days
In the Cayman Islands, the following two corporate forms are most common.
1. Exempted Company: Established under Part VII of the revised Companies Law.
2. Limited Liability Company(LLC): Established under the revised Limited Liability Companies Law.
Establishment of a Cayman Exempted Company
Establishment cost: USD 4,400 (total cost at the time of establishment)
Annual maintenance cost: USD 3,400
* Annual services are based on the year from the beginning of the year to the end of the year in accordance with local regulations. Therefore, even if you establish your company in December of the current year, you will need to pay an additional annual renewal fee before January of the following year. Please review this before proceeding and set up your company's establishment schedule.
Included:
1) Incorporation, registration and government registration fees
2) Preparation of a mandatory statement that no business will be conducted in the Cayman Islands
3) Drafting Articles of Incorporation and Registration
4) Certificate of Incorporation issued by the Cayman Islands government
5) Preparation of Subscription Agreement and related contracts for the corporation
6) Preparation of documents required for incorporation and maintenance of the corporation, including director consent forms, board resolutions for the issuance of shares, shareholder/director lists, and UBO (Ultimate Beneficial Owner) documents, etc.
7) Provision of business address on the register (from the beginning of the year to the end of the year)
8) Certificate of Incumbency (proof of corporate existence)
9) Notarization of corporate documents
10) International mailing of corporate documents
Establishment of a Cayman Limited Liability Company (LLC)
Establishment cost: USD 5,000 (total cost at the time of establishment)
Annual maintenance cost: USD 4,000
* Annual services are based on the year from the beginning of the year to the end of the year in accordance with local regulations. Therefore, even if you establish your company in December of the current year, you must pay the annual renewal fee before January of the following year. Please review this before proceeding and set up your company's establishment schedule.
Included:
1) Incorporation, registration and government registration fees
2) Certificate issued by the Cayman Islands Registrar of Companies
3) Preparation of a statement of no business will be conducted in the Cayman Islands
4) Preparation of a partnership agreement between members
5) Registration of managers and processing of registration
6) Preparation, registration and storage of documents required for incorporation and maintenance of a company, including UBO (Ultimate Beneficial Owner) documents 7) Provision of business address on registration (from the beginning of the year to the end of the year)
8) Certificate of Incumbency (Certificate of Corporate Existence)
9) Notarization of Corporate Documents
10) International Mailing of Corporate Documents
Opening a bank account:
Opening an account remotely at a major bank in the Cayman Islands.
Account opening arrangement and consulting fees: USD 1,200.
Minimum deposit per bank:
Butterfield Bank - USD 150,000
Cayman National Bank - USD 100,000
Royal Bank of Canada (RBC) Bank - USD 500,000
Canadian Imperial Bank of Commerce (CIBC) FirstCaribbean International Bank - USD 25,000
NCB (Cayman) - USD 100,000
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