Cayman Islands companies are commonly used in structuring international transactions. The Cayman Islands has also established itself as the jurisdiction of choice for the listed issuers on the Hong Kong Stock Exchange. As at May 2024, there are 2,609 companies listed on the Main Board and/or the GEM Board of the Hong Kong Stock Exchange, of which over 50% are Cayman Islands companies.
We highlight some of the reasons for this and the key advantages of using Cayman Islands companies.
- Respectable legal system – As a British Overseas Territory, the Cayman Islands enjoys a legal system based upon English common law principles, with the final court of appeal being the Judicial Committee of the Privy Council in London.
- Regular updates to its company law legislation – The Companies Act of the Cayman Islands is regularly updated in consultation with the private sector.
- Taxation – There are currently no withholding taxes or taxes based upon profits, income, gains or appreciations being levied in the Cayman Islands. In addition, an exempted company may obtain a renewable undertaking from the Cayman Islands government that it will not be subject to such taxes for a period of 20 years.
- No exchange control restrictions – There are no exchange control regulations or currency restrictions in the Cayman Islands. As such, funds may be transferred in and out of the Cayman Islands freely without any restrictions.
- Timely incorporation – An exempted company may be incorporated on the day the application is made with the Registrar of Companies in the Cayman Islands.
- High quality professional services – The Cayman Islands finance industry is well supported by highly experienced professional service providers in the various sectors including legal, insurance, investment, fiduciary and corporate services and representation by all of the major international accounting firms.
The Conyers Hong Kong office is Asia's market leader for IPOs and mergers & acquisitions. Our lawyers regularly advise on Bermuda, British Virgin Islands and Cayman Islands laws on complex cross-border transactions.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.