What you need to know about keeping money with an offshore business in the Cayman Islands.
Many are feeling confined because of local tax structures. Others have wealth but no form of asset protection. By creating an offshore LLC, an individual can do both and more. LLCs allow you to hold funds, make investments, and so much more. The best part is that it is completely legal.
The whole process seems illegal from the outside looking in; taking your money overseas in order to pay less in taxes. The best part is that it’s completely legal. If you want to keep your wealth and pay less in taxes, an offshore business can help you. You can’t just move your money and business overseas and ignore it, though. Individuals with an offshore LLC still need to report taxes.
One of the best nations to form an offshore LLC is the Cayman Islands. The process is quick and easy and you will receive major tax benefits. The Cayman Islands is a country in the Caribbean Sea, near Cuba, made up of three islands, Grand Cayman, Little Cayman, and Cayman Brac. This British Overseas Territory has a population of roughly 60,000 people. For many years, the Cayman Islands have been a popular destination for wealthy individuals to hold their money offshore.
The official language in the Cayman islands is English which is a perk for many English-speakers that may be concerned about a language barrier. For more perks of starting your LLC in the Cayman Islands, continue reading below.
Why the Cayman Islands?
Tax havens are legal ways for individuals and corporations from all over the world to reduce their tax responsibilities. They provide banking services to foreign entities, allowing them to save money, and making it more appealing than continuing their financial business in their home countries. For individuals, tax havens can offer lower or no capital gains tax, tax on interest, inheritance, or personal income. Many corporations have saved billions by reporting earnings to subsidiaries in countries that have better corporate tax laws.
The Cayman islands is one of the most attractive tax havens found around the globe.
The islands offer one of the most attractive tax loopholes of both individuals and corporations. Here, corporations can be formed and retain assets without paying tax. When this is doe for business purposes, it is completely legal. Offshore companies don’t pay taxes. Instead they pay a licensing fee directly to the government every year. The amount of authorized share capital the company has is used to calculate this fee.
The Cayman Islands is very popular for offshore hedge funds and is one of the largest captive insurance centers in the world. Private and institutional investors are drawn to the Cayman Islands as a regulated and tax neutral region.
Privacy is another leading advantage of forming an LLC in this offshore destination. When registering an LLC, there is a simple document filed with the Registrar that doesn’t provide the names of the members or managers. The process of forming the LLC is easy as well, which will be discussed further below.
There are no corporate, capital gains, income, profit, withholding, or other taxes on a corporation in the country.
Forming a company is quite easy in the Cayman Islands. To form a corporation in the Cayman Islands, you will need at least one director and a secretary. You will also be required to register the names and addresses of the directors and officers.
Before you register your company in the Cayman Islands, you must choose a name for the LLC. There are a few rules, however. Some words are prohibited from being used:
- mutual fund
- Chamber of Commerce
- Building Society
These words require proper licensing or permits to be named as such. The name must also be different than other business name located in the Cayman Islands. It is optional for the LLC name to include Limited Liability Company, LLC, or any other abbreviation, not required.
After you have the name, you register the company with the Cayman Islands General Registry through the Cayman Online Registry Information System, or CORIS.
The entire filing process can be done in a single day. The Registrar will issue a Certificate of Registration when the LLC is officially registered.
Thinking of Going Offshore?
There are many advantages of taking your money offshore from setting up an offshore bank account from your home country to moving abroad and seeking out new investments. However you’d like to move your money offshore, Alpen Partners can help. There are a plethora of tax benefits for going offshore, whether it’s expatriating and living completely in a new country, working, investing, or banking. In many cases, you can lower your tax responsibilities while staying legally compliant.
Begin by reading our article about how to take your money offshore. Here you can learn more about asset protection, diversification, banking overseas, and more.
It is important to note that not everyone can be a registered advisor. Alpen Partners is dedicated to providing the proper help to our clients. To qualify to register with the SEC, investment advisors usually have $25 million or more in assets under management. We don’t take this responsibility lightly. SEC-registered advisors are held to a high standard of conduct among other advisors.
In order to be an SEC-registered advisor, Alpen Partners has to register with the Securities and Exchange Commission (SEC) as an investment advisor. We had to pass an exam on uniform investment advisor law that covers federal securities laws and other topics related to investment advising.
Alpen Partners Wealth Management International AG, the sister company of Alpen Partners Wealth Management AG, is now a registered investment advisor with the U.S. Securities and Exchange Commission (SEC). Together with our partner Swiss private banks, our company can now offer the full Swiss private banking experience to American clients, both resident and non-resident.