The Cayman Islands is a tax-neutral jurisdiction administered by the Registrar of Companies (General Registry) under the Companies Act (As Revised). It is the leading domicile for investment funds and a common base for fintech and digital-asset holding structures, offering no direct taxation alongside an established legal system and economic-substance and beneficial-ownership regimes aligned to international standards.
The standard vehicle is the exempted company (limited by shares) under the Companies Act (As Revised), designed for business carried on outside the Cayman Islands. Alternatives include the Cayman LLC, the exempted limited partnership, the segregated portfolio company, and the foundation company.
There is no minimum capital — authorised share capital up to US$50,000 keeps the company in the lowest fee tier — and a single director and shareholder are allowed with no residency requirement. Incorporation must go through a licensed corporate service provider, which maintains the registered office. The government incorporation fee varies by authorised share capital; standard registration takes three to seven business days, with an express service (around US$988) completing in one to two business days. Registrable beneficial owners (25%+) must be recorded in a beneficial-ownership register at the registered office.
The Cayman Islands imposes no corporate income, capital gains, or withholding tax and no VAT/GST, and an exempted company can obtain a tax-exemption undertaking; there is no requirement to file accounts or appoint an auditor. Each January the company files an annual return and pays the annual fee to the Registrar, and notifies the Tax Information Authority whether it carries on a "relevant activity" under the International Tax Co-operation (Economic Substance) Act. The beneficial-ownership register is maintained under the Beneficial Ownership Transparency Act (Revised), in force since 31 July 2024.