Cayman Islands: Types of Company
Ordinary Non-Resident Company
An ordinary non-resident company is subject to the same rules as a resident company, but under the terms of the Local Companies (Control) Law 1995, must not conduct any business within the islands. This form, or that of the exempt company, is the usual choice for offshore operations. The Financial Secretary will grant a certificate of non-residence if he is satisfied that the company does not and does not intend to trade onshore. The company is then relieved of the licensing requirement and the need to provide lists of shareholders to the Immigration Department. An annual list must still be provided to the Registrar, but it is quite usual to appoint proxies.
The normal minimum capital requirement is KYD42,000, and the minimum capital duty levied on incorporation of a nonresident company and annually thereafter ranges from KYD600 to KYD2,468 depending on capital contribution. There are no restrictions on the location of general meetings or of directors or the secretary, if there is one, except that one shareholders' meeting must be held in Cayman each year.
Records of members, directors, mortgages and charges must be kept. Financial records must be maintained although no audit is necessary and there are no filing requirements.
Ordinary non-resident companies can apply to convert to exempted companies.