What’s so Special about establishing a Company in the Cayman Special Economic Zone?

Cayman Enterprise city is a Special Economic Zone (SEZ) in the Cayman Islands providing an advantageous business environment whereby businesses can set up a physical presence in the Cayman Islands. From the time Cayman Enterprise City was first launched, over 250 companies have been established in the SEZ. Some of the companies in the SEZ range from internet and biotech companies to aviation and maritime companies amongst others. Companies are not subject to any local corporate taxes and companies have a physical presence including staff presence in the Cayman Islands. 

Advantages of the Special Economic Zone: 

• Tax exempt from corporate, sales, income and capital gains tax
• 100% foreign ownership is allowed 
• Quick to establish operations (4-6 weeks) 
• 5 year work/residency visas that are renewable and granted in approximately 5 days 
• Great jurisdiction and laws 
• No Government filing or reporting or auditing requirements  
• Pro Business Environment 
• Protection of Intellectual Property Offshore 
• Great quality of life and safe place to live  
• Warm climate year round 
• EST time zone 
• Accessible flights to global markets 

Companies in the SEZ are exempted or partially exempted from aspects of Immigration Law, Trade and Business Licensing Law, Customs Law amongst other legislation. 

The first step is to determine if your business can fit into one of the categories for the Cayman Special Economic Zone;

 1. Cayman Commodities and Derivatives Park

2. Cayman Science and Technology Park

3. Cayman Media Park 

4. Cayman Internet Park

5. Cayman Maritime & Aviation Park. 

 The majority of companies are established in Cayman Internet Park and Cayman Media Park. A more detailed description of the types of activities can be provided upon request.The activities that the company intends to carry out must be verified to ensure that they are in accordance with the SEZ Law so that the company can be properly established and licensed in the SEZ. Once it is determined that a company can be established in the special economic zone, some factors to consider when deciding to establish in the Cayman SEZ include; how many staff members are required, what amount of office space is required, are there specific IT needs or other needs. 

The Special Economic Zone (SEZ) Law provides a number of incentives and the Cayman Islands are an ideal business jurisdiction. The legal system is based on English Common law and the environment is very business friendly and is rated consistently as one of the top global financial centres in the world and the number one jurisdiction for hedge funds. 

Interested in obtaining more information on establishing a company in the Cayman Special Economic Zone? contact [email protected] 

Jennifer Harding-Marlin / Attorney / jhmarlin.com 

*The information in this article is not legal advice and is for general information purposes only.