- Questions Relating to the Main Advantage that Cayman Islands Corporate Structures Provide to Clients?
- April 13, 2015 | Author: Gary Smith
- Law Firm: Loeb Smith - George Town Office
1. Cayman corporate structures allows clients to maximise the flexibility and other benefits of utilizing such structures in international finance transactions and/or investments: the ability to structure group businesses with a holding company to maximise investment and tax efficiency, effect IPOs, merge or consolidate with another Cayman company or a company from another jurisdiction that permits mergers or consolidations with a foreign entity, to effect de-listings, and take-private transactions, and generally achieve efficient tax structuring of businesses; the ability to use Cayman corporate structures to facilitate tax efficient wealth management and succession planning.
2. What is the main reason a client would consider using a Cayman Islands exempted company? The Cayman exempted company is ideal for international finance transactions and/or investments for many reasons, including: incorporation with name written in foreign characters; incorporation within one business day of documents being filed; no requirement for directors or officers to be resident in Cayman; register of shareholders and minute books can be held in another jurisdiction; no requirement for shareholders’ annual general meeting; maximum confidentiality and anonymity - with no requirement to publicly file register of shareholders or accounting information; no taxes on distributions or on capital gains; no withholding taxes on dividend or other distribution; no gift, estate or inheritance taxes; no foreign exchange restrictions.