Thinking of setting up your company in the Cayman Islands? Here are some things to consider before diving right in to Cayman Islands company setup.
The Cayman Islands has become one of the greatest places to move to for business and pleasure. For starters, Cayman Islands residency is pretty simple for a UK or US citizen to obtain, especially since the work from home era spurred the Global Citizen Concierge Program, which helps with Cayman Islands company setup.
On top of this, the Cayman Islands boasts a whole host of benefits, including tax relief and a beautiful island setting. What more could you ask for?
Pros and cons of Cayman Islands company setup
For a balanced take on why a Cayman Islands company setup could be the next step for you and your new business, read on…
The Pros of Setting Up Business in the Cayman Islands?
There are plenty of benefits in Cayman Islands company setup. These include:
Ease of Access
As we briefly mentioned previously, obtaining residency on the islands is now easier than ever. In fact, there are a number of potential options to choose from, the newest of which is the Global Citizen Concierge Program (GCCP).
The GCCP is a new government initiative which allows people who are employed outside of the Islands to relocate and work remotely in the Cayman Islands for up to 24 months, which makes it easier for Cayman Islands company setup. As long as the individual has the financial independence to do so, can pay the annual fee, and has proof of employment, they are eligible.
The only other restrictions are income; applicants must have a minimum annual income of:
Tax Breaks
The Cayman Islands are one of the most well-known tax havens of them all. In fact, not only do they not charge corporate tax on businesses, they also don’t charge citizens:
This is because they rely on tourism and work permits to replace the usual taxation system. It makes it an ideal place to set up a business, as taxes on profits are non-existent, saving companies thousands.
Stability
The Cayman Islands is revered for its general stability across the board. They’ve enjoyed economic, legal, and political stability throughout history.
Not to mention, they have a very stable and developed legal system, and an advanced banking system. This makes them a pretty solid place to live and work.
Privacy
Unlike many other countries, the Caymans offer a high degree of investor protection for all businesses on the islands. Without it being mandatory to file financial records ordisclose Director or shareholder names, confidentiality and anonymity is made possible.
English-Speaking
The predominant language on the islands is English, which makes it the ideal place to head to from the US or UK. This Englishness also extends to the court and law systems, which are based on English common law. So, any legal documents required personally or in business will be conducted in a familiar language and jurisdiction.
Short Commutes
Considering the largest of the islands – Grand Cayman – is only around 22 miles long, the likelihood of a long commute is almost non-existent. In fact, real island residents have confirmed that their commute is usually no more than 10 minutes.
Beautiful Scenery and Lots to Do
Alongside the obvious tax and citizenship benefits, we can’t ignore the setting that the islands offer. With beautiful beaches, tropical weather, and an amazing list of things to do, you won’t be short of a good time here.
Work/Life Balance
Considering the beautiful scenery and tax benefits, it’s no wonder that work/life balance on the Cayman Islands is second to none. What’s more, work/life balance is actually encouraged as part of everyday life in the Caymans. This makes it a very different place to work than the US, for example, where presenteeism at work is often sought after.
The Cons of Setting Up in the Cayman Islands?
We can’t take a balanced look at setting up a business in the Caymans without exploring the cons. Of course, the many pros above makes it hard to beat, but we can’t ignore the following negatives:
High Cost of Living
Despite the tax breaks here, high costs of living might just revoke this benefit entirely. In fact, taking a look at some examples of the most basic living costs, average prices are:
Comparing these prices with similar things in the UK, you’ll most likely require a higher salary to live somewhere like this.
Takes a While to Settle In
Despite the residential opportunities for expats, those who have moved to the islands themselves have said it takes a little longer to set everything up when moving here. For example, renting somewhere, installing internet, opening a bank account, and the like, all seem to take longer than they would in the UK.
This can most likely be attributed to the laid-back culturehere. So, as long as you’re prepared for this – rather than the hustle and bustle of London life – you’ll fit right in.
Poor Transport Links
The public transportation system on the islands isn’t as advanced as some others. It’s mainly limited to buses and expensive taxis, which means that having your own car is essential if you move to the Cayman Islands.
Of course, this won’t be an issue if your business is carried out at your new Cayman Islands home. So, if you were thinking of investing in office space, transportation links might be worth considering before doing so.
Conclusion
As you can see, there are plenty of benefits, and a few drawbacks, for setting up a business in the Cayman Islands. For a businesswoman looking to find the perfect setting for their company, perhaps the Caymans is the place to be?
