Facts on a Cayman Islands Exempt Company
Unlike Ordinary Companies, Cayman Islands Exempt Companies are not required to have the Ltd suffix after their company name. Exempt Companies are also allowed to offer their stocks for sale to residents of the Cayman Islands if they are listed on the Cayman Islands Stock Exchange (CSX). Exempt Companies that sell or have sold shares are not allowed to hold land. For Exempt Companies that have not sold and will not sell shares and who wish to hold land, an exemption may be acquired from the Financial Secretary of the Cayman Islands. Issuing bearer shares is also allowed for Exempt Companies.
Exempt Companies are prohibited from conducting business within the Cayman Islands unless it is necessarily involved with other offshore operations. Exempt companies may also freely change their Memorandum and Articles of Association, needing only to notify the Registrar should they do so. This arrangement is advantageous to companies who wish to establish offshore operations in the Cayman Islands.
Exempt Companies are not required to maintain a list of members and directors for public inspection. Unless any changes have been made, they are also not required to file annual reruns with the Registrar
For Exempt Companies whose capital is under CI$42,000, the incorporation fee is set at CI$410. Exempt Companies with capital greater than CI$42,000 up to CI$820,000 have to pay an incorporation fee of CI$660. Exempt Companies with capital of more than CI$820,000 up to CI$1.64 million are charged a CI$1,384 incorporation fee. Exempt Companies with capital exceeding CI$1.64 million are charged CI$1,968. Exempt Companies can express their capital in a currency other than Canary Island Dollars.
Exempt Companies can obtain a certificate of tax exemption, protecting them from any tax measures that the government of the Cayman Islands is already implementing or might implement in the future.
The directors must hold a meeting at least once a year within the Cayman Islands, but proxies may be used. General meetings attended by members or shareholders are not required.