Establishment of Cayman tax-free company

The registration procedures and requirements for exempted companies in Cayman Islands are the same as those for local companies. A tax-exempt company needs at least one director. An exempted company may not conduct business in the Cayman Islands unless such business directly contributes to the company's overseas business. In addition, the exempted company cannot invite the people of Cayman Islands to subscribe for its shares or bonds. Exempted companies are not allowed to hold land in the Cayman Islands unless approved by the Financial Secretary of the Cayman Islands. The benefits of exempting companies include:

(1) Exempt the company from submitting/reporting shareholder details to the Cayman Islands Companies Registry;

(2) Exemption from making public the register of shareholders/members of the company for public inspection;

(3) Exempting the company from convening the annual general meeting of shareholders;

(4) Tax-exempt companies can apply to the Cayman Islands Government and get a guarantee that they will not be prosecuted. The first application for protection is valid for 20 years, and you can apply for renewal before the expiration.

(5) An exempted company may apply for cancellation of registration and transfer its registration status to other countries.

(6) An exempted company may be registered as a limited company. A time-limited company needs at least two shareholders, and the longest validity period is 30 years.