Cayman Islands


ESSENTIAL FACTS

LOCATION: 19 30 N, 80 30 W
The Cayman Islands are made up of Grand Cayman, Cayman Brac and Little Cayman and are located in Caribbean Sea, more or less between Cuba and Jamaica.

POPULATION: 46,600
The majority of residents live on Grand Cayman.

CURRENCY: Caymanian dollar (KYD)

LANGUAGE: English

CLIMATE: With a tropical marine climate, Cayman Island summers are warm and rainy while the winters are dry but cool.

EDUCATION: 98 percent of those over age 15 have had at least some formal schooling.

PUBLIC HOLIDAYS: Constitution Day - first Monday in July

HISTORY AND GOVERNMENT

HISTORY
The Cayman Islands at first belonged to Jamaica; then they became British colonies until 1863, when Jamaica regained administrative duties over the islands. From 1959 to 1962 the Cayman were a territory of the West Indies; in 1962, it fell back under British rule.

POLITICAL SYSTEM
The chief of stated of this British crown colony is Queen Elizabeth II, who appoints and is represented in local Cayman government by a Governor. In the Prime Ministerial role is a Leader of Government Business. There is a unicameral Legislative Assembly put in place by elections and Executive Council (cabinet) appointments.

JUDICIAL SYSTEM
The Cayman Islands’ legal system is based on British common law and local statutes. The judicial branch is comprised of the Summary Court, the Grand Court and the Cayman Islands Court of Appeal.

COMMERCE AND TRADE

COMMERCIAL ACTIVITY
Agriculture: Vegetables, fruit; livestock; turtle farming
Industry: Tourism, banking, insurance and finance, construction, construction materials, furniture
Exports: Turtle products, manufactured consumer goods to the US
Imports: Foodstuffs, manufactured goods from the US, Netherlands Antilles, Japan

BANKING, FINANCE AND INVESTMENT

FINANCIAL FACTS
The Cayman Islands are perhaps the best-known offshore jurisdiction - and with about 70,000 registered corporations, rightly so. All this financial activity has brought high-end tourism and a thriving service industry to the islands, which has contributed to an incredibly high standard of living - not only for the Caribbean, but worldwide.

Fiscal year: 1 April - 31 March

BANKING
Licensed banks fall under one of three categories. The first category is Class A, which permits banking activity both within Cayman Islands jurisdiction and in other offshore locations.

The other two categories are both Class B, but are further divided into restricted and unrestricted licenses. Restricted Class B banks are required to submit a full list of proposed bank clients to the Financial Services Department of the Caymans, which also has the only authority to permit additions to that list. However, the bank minimum worth is a low USD$20,000.

Class B unrestricted licenses must have a USD$400,000 minimum worth, but can conduct banking business with however may customers they choose without first registering the list with the Financial Services Department.

The name of the department that oversees the banking industry - as well as the Financial Services Department - is the Monetary Authority. All reporting is done to this authority.

Basle Convention rules apply to all bank licenses, fees and transactions.

STOCK MARKET
The Cayman Islands Stock Exchange (CSX) has been in operation for over 10 years, and has approximately 1,500 listings and a market capitalization of more than $123 billion.

Mostly used for Cayman-based funds and securities, the CSX does not come under the jurisdiction of EU or US stock market regulatory authorities. Instead, it is governed by the Cayman Islands Stock Exchange Authority.

MEMBERSHIPS
Caricom (associate), CDB, Interpol (subbureau), IOC, UNESCO (associate), UPU

FOREIGN INVESTMENT
The Cayman Islands do not offer any other incentive to attract foreign investment to their offshore financial centre than complete tax exemption.

IMMIGRATION

VISAS
Only a passport and return ticket is necessary for stays up to six months.

EMPLOYMENT
The Cayman Islands Immigration Department handles all work permit applications. Five-year permits are given to doctors, leaders of religious-based organizations, educators at every level, and personal service workers. Others receive three-year permits.

Corporations with more than 14 foreign nationals on staff must submit a business-staffing plan to the Immigration Department; upon approval, five-year work permits are issued to foreign employees.

Although exceptions do receive approval, the Immigration Department generally issues permits for a total of seven continuous years of employment.

CITIZENSHIP
A quota system is used in issuing Cayman citizenship to Britain, its colonies and territories.

BUSINESS

BUSINESS ENTITIES
The Cayman Islands Registrar of Companies is the regulating authority for incorporating offshore businesses, and generally is able to complete the registration process in 24 hours. As long as the company’s office is registered in the Caymans and the Memorandum of Association is submitted and there is at least one shareholder listed, the company can be registered.

Those wishing to incorporate can do so as an Ordinary Resident Company, Ordinary Non-Resident Company, Exempted Company or an Exempted Limited Duration Company.

TRUSTS
Cayman trust law mandates that all trusts based in the Caymans have a 150-year duration. There is no need to register the trust with any Cayman authority. Trusts can be imported and exported, and can be used for practically any purpose.

TAXATION
Stamp duties are applied to real estate transfers and financial transaction legal documents except for those having to do with mutual funds.

Import duties are applied, but building materials used for new hotel construction are exempt.

Other than the above, there are no other taxes levied on foreigners and Caymanians alike.

The Cayman Islands have not taken part in any double tax treaties. However, the US does have a Tax Information Exchange Agreement with the Cayman government.