The Cayman Islands have wonderful corporate laws, which can be seen in the fact that there are over 36,000 companies registered there.

There are three major types of companies in the Cayman Islands, which include Ordinary-Resident Companies, Ordinary-Non-Resident Companies and Exempted companies.

Ordinary-Resident Companies are companies that do business on the islands. They are categorized as “resident” and have to apply for and receive a "non-resident" or "exempted" designation from the Financial Secretary. At this time, the designation does not have to be applied for at the time of incorporation, but can be done several years later. In addition, this is the only company that can own real estate without approval.

Ordinary-Non-Resident Companies are companies that conduct business off the island. A good example of this type of company is one that holds the title to a Cayman registered ship.

Exempted companies are companies that do all their business away from the Cayman Islands. In order to gain this designation, a proposed director will have to declare that the operation will be outside of the Cayman Islands and this must stay with this way for the life of the company in order to keep this designation. On the other hand, laws governing offshore jurisdictions of exempted companies do allow this type of company to have Cayman real estate; however, the exception has to be granted by the Financial Secretary. Exempted companies in the Cayman Islands are guaranteed a tax-free status for a period of at least 20 years. In addition, other benefits for exempt companies can include, the company name does not have to end with Limited or Ltd., and the company does not have to maintain a Register of Members within the islands. Not only this, but an exempted company can form as a Limited Duration Company. This will allow the company to qualify for the same treatment as a partnership under the United States
tax code.