Almost everyone has heard the name “Cayman Islands”. Have you ever wondered why? Easy. This island is the king of kings when it comes to tropical paradises and financial freedom, our favorite combination.
Known as the turquoise paradise, these three semi-virgin islands are part of the British overseas territory. This piece of heaven is barely 264 km2 and is located in the middle of the Caribbean Sea, right between Jamaica and Cuba, where it welcomes cruise ships loaded with tourists and offshore investors who stop by every day on its main island, Grand Cayman.
Accompanying the main island are the two jewels that complete the most stunning trinity in the entire Caribbean: the islands of Little Cayman and Cayman Brac.
This dream place attracts tourists and investors alike because of its beauty and its advantages, such as the fact that there is no income tax on its territory.
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We are excited to tell you that Privatus Maximus, one of the most recognized banking experts in the Cayman Islands have joined forces to offer you a truly compelling opportunity.
Just for our distinguished readers, we are offering a package that combines corporate and banking services in the Cayman Islands. In other words, it has never been easier to have the help you need to open a company (no matter what its legal structure is) and a bank account in this turquoise paradise.
The natural goodness of the Cayman Islands made it worthy of the name “turquoise paradise”. And in the same way, their incredible banking system has given these islands the title of “the Swiss of the Caribbean”.
It is worth noting that in the Cayman Islands it is not uncommon for banks to allow you to open an account without visiting their offices. Almost all communication is done through email and video calls. This is very convenient.
Most offshore banks are branches, subsidiaries, and affiliates of international financial institutions, with 40 of the 50 largest banks in the world present in the islands.
Other reasons why the Cayman Islands are the quintessential banking destination for those looking for the best of the best are:
Total discretion: in this beautiful jurisdiction the names of the beneficiaries of offshore companies registered here, are not incorporated in any public registry and there is no obligation to disclose the identity of the beneficiaries. The Cayman Islands does not have double taxation agreements with any country and banks protect the identity of the people who entrust them with the custody of their assets and money. However, as a CRS country, the fund information will be shared with the tax authorities of your country of origin.
Stability: the Cayman Islands are one of the main international financial centers, so, as expected, the economic sector of banking and services is exceedingly developed. This will give you the certainty that your money is safe in a stable environment.
Forget about taxes: along with their wonderful economic outlook, there is another aspect that puts the Cayman Islands on a higher level than many other jurisdictions. The islands have no income tax, property tax, or capital gains tax.
Convenience to open your account: another advantage of opening a bank account in the Cayman Islands is that you can open it without physical presence. Its banks are an example of high-quality online banking that allows the client to perform any transaction. There is also the possibility to request any type of banking services such as foreign exchange accounts, credit cards, and more.
Timeframe: opening a bank account in the Cayman Islands can take from one to five weeks, depending on how agile the expert you choose is to advise you and how soon you can meet the requirements. Although the bank may delay the process if they require more information.
Banking services in the Cayman Islands
This jurisdiction has one of the most advanced, if not the most developed, financial ecosystems in the entire Caribbean. The Caymanian government is serious about the soundness of its financial services and that is why most of the public and private efforts are geared towards keeping the Cayman Islands at the cutting edge of banking services.
In the Cayman Islands’ banking services offer, you can find almost anything you can think of: multi-currency accounts, investment accounts, savings accounts, as well as investment and credit instruments.
Cayman Islands banks offer a full range of products for non-resident clients. Deposits, savings, and checking accounts are widely available at many banks with competitive interest rates offered in all major currencies.
The Cayman Islands is one of the leading international financial centers in the world. Over 80% of more than US $1 trillion of deposits are booked through banks in the Cayman Islands, representing interbank bookings between onshore banks and their domestic branches or subsidiaries.
Currently, the Cayman Islands financial system is supported by nearly 210 banks that are licensed to operate in the Cayman Islands, of which 19 are Category A, or authorized to conduct international and domestic business. The remaining are Category B banks, whose work is limited to international transactions only.
Caymanian banks offer a wide range of services for individuals, businesses, and institutions:
Deposit, savings, and checking accounts in any of the world’s major currencies. First level online banking. Personal credit and debit cards. Lines of credit and loans. Cash and Asset Management. Merchant services. Safety boxes. Insurance. Investment instruments. Treasury services. The process of opening a bank account in the Cayman Islands is relatively simple if you have the appropriate guidance.
To open a particular bank account, you must provide detailed personal information to verify the holder’s identity and the origin of the funds.
The required documentation consists of financial reference provided by your current bank indicating the average balances held for six months, documentation on the identity, residential address, occupation, details regarding the purpose of the account as well as the nature and volume of transactions expected in dollars, including the origin of the initial deposits. Most banks usually require a minimum initial deposit of about $2,500, although the amount varies depending on the bank you choose.
These are the most common requirements you will need to start using Caymanian banking:
You will need to fill out a form with your information. The details of the forms vary depending on the bank you decide to use, so it is best to consult with your expert. The next step is to submit the form with the following documents: Copy of the legal documents from your Caymanian legal entity (in case the bank account is for a company). Notarized copy of passport and identity documents of the beneficiary(ies). Notarized copy of passport and identity card of the beneficiary(ies) of the bank account. Copy of a document proving your residence not older than three months (a utility bill such as electricity, water, or telephone; or a bank statement). CV of the beneficiary(ies) of the account. Bank recommendation letter. If necessary, the letter should be translated into English. After filling out the form and collecting the documents, your expert will send everything to the bank you have chosen for review. If you submit your application correctly and the bank does not find any problems, your account can be open within a week. It’s a fairly straightforward process.
Opening a bank account in this turquoise paradise is not a simple process, but you can go through it without problems with the help of our professionals.
Our services in the Cayman Islands: corporate structure + bank account
We at Privatus Maximus have partnered with the best advisors and experts in corporate and banking services in the Cayman Islands to design a package that will open the doors of the turquoise paradise to our readers.
This offer is a straightforward option for people who want to register a company and open a bank account at a special price in one of the most coveted places in the world.
Doing business in the Cayman Islands has never been a reality as obtainable as it is now with our services. Enjoying one of the most recognized international financial centers on the planet can now be a possibility for you.
Our package consists of the creation of the corporate structure that best suits your needs and a bank account that suits the operations you want to carry out on the island. All for an absurdly attractive price.
If you want to know more details about this promotional package or the rest of our services in the Cayman Islands, contact us now!
Who are we and what can we do for you?
We at Privatus Maximus a firm that has been providing trust and immigration services for 25 years. Thanks to this partnership we have been able to increase and safeguard the freedom of our clients in the best jurisdictions when it comes to financial services, such as the Cayman Islands.
The work of almost three decades has translated into a network of professionals without comparison around the most favorable jurisdictions for the personal and economic freedom of our clients. Now, Privatus Maximus has also contributed to this network with new experts and jurisdictions. The Cayman Islands is one of them.
At an incredible price, our Caymanian experts can offer you:
Register a corporate structure, regardless of type. Advice and management to open bank accounts or acquire financial services. Fill out the forms and submit the documents required by each entity. Having an empire and a bank account has never been so easy. What are you waiting for? Contact us now and start enjoying the benefits that the Cayman Islands have to offer!
How can you protect yourself from the growing insecurity in which many countries in the world are immersed?
One essential way is by relocating to a jurisdiction that guarantees you the lifestyle you desire and the possibility of obtaining an advantageous second citizenship after a qualifying period.
Due to its unique status as a British Overseas Territory, The Cayman Is-lands remain one of the few places on earth where residents can apply for a British Passport after completing the formalities of being granted residen-cy and living on the island for five years.
The combination of having the right to obtain what is probably the most prestigious citizenship in the world today and having tax residency in an in-ternational financial center with the best tax policy imaginable is like the marriage between a Caspian Sea caviar and a bottle of the finest Cham-pagne Extra Brut. It is an option for those with the most extremely discern-ing tastes.
However, contrary to what one might think, residing in the Cayman Islands is not that expensive.
This jurisdiction allows for a lifestyle that, for many, beats Monaco, Switzerland, and the French Riviera.
This is why:
The best tax optimization you can get: the main reason why the Cayman Islands is positioned as the most exclusive international fi-nancial center for investors and high net worth individuals around the world is because of their tax policy, the most prominent element of which is that there is no tax on income, capital gains, property or companies. First world lifestyle: one thing that amazes us about life in the Cayman Islands is that this jurisdiction’s per capita GDP exceeds the per capita GDP of the entire European Union. This is a place designed to experience the highest pleasure and freedom threshold. It is within reach of many airports: unlike other island paradises that you reach after a flight with three connections, the Cayman Is-lands are a significant destination for significant airports in Latin Amer-ica, Canada, the east coast of the United States, and some major cit-ies in Europe. It is a British overseas territory: one of the aspects that discour-age investors from the Caribbean is that governments in the region are unstable. However, that is not a problem in the Cayman Islands, which offers the political and economic stability that other jurisdictions in the region cannot achieve.
The two most popular types of residency programs in the Cayman Islands at the moment for high net worth clients are:
Residency Certificate for Persons of Independent Means; and Certificate of Permanent Residence.
A person who is eighteen years of age or older and meets the requirements set out below may apply for the right to reside in the Cayman Islands as a person of independent means. If it is successful, you will be granted a Resi-dency Certificate for Persons of Independent Means. The Certificate, which is valid for twenty-five years and is renewable thereafter at the discretion of the Chief Immigration Officer, entitles the person to reside in the Cay-man Islands without the right to work.
Dependants of the holder of a Residency Certificate for Persons of Independent Means
The spouse and any dependent children of a holder of a Residency Certifi-cate for Persons of Independent Means will also be granted a Residency Holders (Dependant’s) Certificate entitling them to reside in the Cayman Is-lands without the right to work.
To be eligible to apply for a Residency Certificate for Persons of Independ-ent Means, a person must:
Be at least eighteen years of age; Not have any serious criminal convictions; Be in good health and possess adequate health insurance coverage; Have attained the below financial standing. Where the applicant intends to reside in Grand Cayman:
He must satisfy that he has a continuous source of an annual income of US$147,000, without the need to engage in employment in the Islands; or;
That he has opened an account with the Cayman Islands Monetary Au-thority-regulated and locally licensed institution (possessing a Class A li-cense following the Banks and Trust Companies Law (2013 Revision) or regulated under the Securities Investments Business Law, and maintains a minimum deposit in the account of at least US$488,000 assets¹; and
That he has invested the sum of US$1.2M in Grand Cayman, of which at least USI$610,000must be in developed residential real estate.
“assets” include cash cash equivalents, fixed income instruments, equities, and listed Exchange Traded Funds.
Death of, or divorce from, the holder of a Residency Certificate for Persons of Independent Means
Upon the death of or divorce from the holder of a Residency Certificate for Persons of Independent Means, the surviving or former spouse’s right to reside in the Islands may be revoked at the discretion of the Chief Immi-gration Officer.
Within three months of any revocation, the surviving or former spouse may apply for the grant of a Residency Certificate for Per-sons of Independent Means in their own right. The same eligibility require-ments set out above must be satisfied. Where an application for a Residen-cy Certificate for Persons of Independent Means has been made within the three months from the date of the revocation, the applicant’s right to reside in the Islands shall continue upon such terms and conditions until the Chief Immigration Officer determines the application.
Dependent Children of the holder of a Residency Certificate for Persons of Independent Means
A child’s right to reside in the Islands as a dependant ceases upon comple-tion of their full-time tertiary education or when they reach the age of twenty-four years, whichever happens, earlier, unless the Chief Immigra-tion Officer is satisfied that there are exceptional circumstances.
The Chief Immigration Officer may vary or amend a Residency Certificate for Persons of Independent Means to add or remove a spouse or dependent child(ren).
A dependant child of the holder of a Residency Certificate for Persons of Independent Means who was listed in the original application for the Certificate, who has attained the age of eighteen years, and who is of proven good character and conduct, may also apply for permanent resi-dence.
Revocation of a Residency Certificate for Persons of Independent Means
The right to reside in the Cayman Islands based on a Residency Certificate for Persons of Independent Means (or a Residential Certificate for Retirees) may be revoked by the Authorities if:
The holder fails to maintain the financial standing requirements set out above; The holder was not physically present in the Islands for a minimum of thirty days in aggregate in any calendar year; or In the opinion of the Chief Immigration Officer, any of the general grounds for revocation of permanent residence applies to the holder.
An annual declaration is required to be submitted by 31st December to the Chief Immigration Officer.
The second category (Certificate of Permanent Residence), as stated above. This can lead to British Citizenship after five years if specific criteria are met. This a relatively new category of residence and affords persons who have invested a prescribed amount in developed real estate in the Cayman Islands the right to reside permanently in the Islands.
To qualify for a Certificate of Permanent Residence for Persons of Inde-pendent Means a person must be able to demonstrate that:
He has invested US$2.4 million in developed real estate in the Cay-man Islands; He and his spouse (if applicable) have a clean criminal record; He, his spouse, and dependent children (where applicable) are in good health and possess adequate health insurance coverage; and His financial resources are sufficient to maintain himself and his de-pendents adequately. Note: This category of residence is subject to annual quota of two hundred and fifty thousand dollars.
The holder of a Certificate of Permanent Residence and his spouse and de-pendent children (if they were included in the application) are allowed to reside permanently in the Cayman Islands without the right to work.
The right of a child to reside in the Islands as a dependant ends upon completion of full-time tertiary education or when he reaches the age of twenty-four years, whichever happens, earlier, unless Authorities are satis-fied that there are exceptional circumstances. A dependent child of the holder of a Certificate of Permanent Residence who was listed in the original application for the Certificate, who has attained the age of eighteen years, and who is of proven good character and conduct, may apply for perma-nent residence in his own right under the law.
A Certificate may be varied to add or remove dependents if necessary.
However, the holder of a Certificate or his spouse may apply to the Cay-manian Status & Permanent Residency Board for a variation of his Certifi-cate to allow the right to work for any employer but only in a particular oc-cupation or occupations specified by the Board.
Application fee: US$610 Fee payable upon issue of a Certificate: US$122,000 Dependant fee: US$1,2200 per dependant Variation of a Certificate: US$610 Conveyancing fees US$50,000 Legal fees for residency application US$20,000 A one-time govt stamp duty of 7% is payable on the property sale price The real estate agent charges 7.5% on the sale price. Note: where a Certificate has been varied to allow the holder’s right to work will be required to pay an annual fee on or before the anniversary date of the variation equivalent to the annual fee payable by a work permit holder in the same occupation.
Cases for revocation of a Certificate of Permanent Residence for Persons of Independent Means
The holder of a Certificate may have his right to reside in the Islands re-voked if he fails to maintain the prescribed level of investment in developed real estate in the Cayman Islands. In the Authorities’ opinion, any of the matters referred above applies to the holder or his dependents.
Death or divorce of the holder of a Certificate of Permanent Residence for Persons of Independent Means
If the holder of a Certificate dies or his marriage has dissolved, his surviving or former spouse’s right to reside in the Islands may be revoked at the Au-thorities’ discretion.
The spouse may apply for the grant of a Certificate in his/her own rights if the eligibility requirements can be satisfied.
An annual declaration is required to be submitted by 31st December to the Chief Immigration Officer.
Who are we, and what can we do for you?
Privatus Maximus have worked for the past 25 years to offer in-vestors and high net worth individuals worldwide the possibility of obtaining a second passport to protect their assets and increase their freedoms.
The Caribbean has been one of our focal points since we began, and the Cayman Islands are one of our most valued jurisdictions.
Today we have a multidisciplinary team of Caymanian experts that allow us to bring you the possibility of obtaining a residence in the turquoise para-dise.
Contact us now to discuss the type of residence most convenient for you! Our team of experts will accompany you throughout the process of starting your adventure in the Cayman Islands!
Investors who have an eye on the Cayman Islands generally consider establishing an offshore fund.
In fact, some estimates indicate that this jurisdiction is home to about 70% of the world’s funds.
Today, the Cayman Islands is one of the world’s leading offshore jurisdictions and is particularly renowned for establishing investment funds.
Additionally, Cayman Islands entities are customarily used for transactions of all types, including equity, debt, insurance, capital markets transactions, mergers and acquisitions, and joint ventures.
The Cayman Islands have no direct taxes of any kind.
There is no corporation tax, capital gains tax, profits tax or income tax.
The above advantages work like a magnet to attract hedge funds, which are tax free and can pay profits to their investors without making the deductions that other jurisdictions require.
Without further ado, here is a summary of the main reasons why you should consider opening a fund in the Cayman Islands.
Variety: in the Cayman Islands, there are several types of funds that are very flexible to the needs of each investor, whether it be a registered, managed, and licensed, or private fund. A foolproof financial infrastructure: The Cayman Islands are one of the world’s premier international financial centres. Therefore, the jurisdiction has a financial infrastructure that minimises risks and promotes ease of doing business. Good political-economic climate: The islands are not called a paradise just because of their natural wonders. The Cayman government enjoys well-established political stability, which translates into a favorable and relatively predictable economic climate. A favorable tax scheme: In this advantageous jurisdiction, there are no capital gains, income, profits, or withholding taxes. A secure jurisdiction: The Cayman Islands have consolidated regulations and a reputation that positions this jurisdiction as one of the safest place to do business in the world. Simple requirements: The requirements to establish and manage a fund in the Cayman Islands are so simple that it is challenging to find a jurisdiction that can compete when it is comes convenience.
Establishing investment funds in the Cayman Islands can be very beneficial. There are a lot of institutional investors but private fund placement has also found a niche here, but all types of investors can establish funds.
There are currently over 20,000 regulated funds in the Cayman Islands. The high degree of flexibility allows mutual funds to be structured as companies, trusts, or limited partnerships.
Types of Cayman Funds
Registered mutual funds: This kind of fund requires registration with the Cayman Islands Monetary Authority (“CIMA”), in addition to a minimum initial investment of $100,000 per investor.
The main characteristic of a mutual fund is that the investors can issue equity interest that can be redeemable or purchased at the option of the investor. These types of financial instruments will allow the reduction of the investment risk associated with any investment strategy.
Administered mutual funds: you may choose administered mutual funds, which require the appointment of a named licensed administrator who has a principal office in the Cayman Islands and thus bears primary responsibility for the regulation of these funds.
This type of mutual fund is favored by investment managers who wish to have a minimum initial subscription per investor that is lower than $100,000.
Licensed mutual funds: These kinds of funds are products established more by large institutions, in particular by their directors or general partners.
Their daily operations are delegated to other specialised professionals.
Choosing the type of fund: Investors have several options for opening a fund in the Cayman Islands. Among all the options, the most popular are hedge funds. It is also noteworthy that investors can choose between an open or closed-ended fund. Select the legal entity: A fund can be registered through a company, a trust or a partnership. This will always depend on the specific needs of each investor. Appoint the directors: they need to be under the Directors’ regulatory framework, which is governed by the Director Registration and Licensing Act and the Directors Registration and Licensing Regulations.
Following that legal framework, directors of any Cayman fund must be registered or licensedwith CIMA, depending on the circumstances.
Reach the required number of investors: A fund in the Cayman Islands requires a minimum number 2 investors, even though CIMA will register a fund with 1 investor if the client wishes to. All Cayman funds will require a registration form with CIMA, open-ended funds are required to register under the Mutual Funds Law and closed-ended funds are required to register under the Private Funds Law.
Investors with a more determined profile may be inclined to open a hedge fund, which is usually the way to obtain the highest investment returns even when markets are hit by a crisis such as the coronavirus pandemic.
Generally speaking, a hedge fund provides a triple advantage to the investor:
They are expected to offer higher returns; Returns are less correlated with the general market trend and they can be useful, as their name suggests, to offer investment coverage in times of decline;and They allow better use of the opportunities; through the wide range of strategies they can carry out and they are extremely flexible investment funds. In the specific case of hedge funds in the Cayman Islands, they can be registered using the following legal entities: company, trust, or partnership.
In general, most hedge funds registered in the Cayman Islands are established as open-ended alternative investment funds. This is the figure that allows investors the possibility of redeeming their investment without much work.
If a hedge fund in the Cayman Islands sounds like a good idea, you’ll be glad to know that we have a team of Caymanian experts who can help you with the whole process. Contact us to meet our team!
There are several investment areas you can focus your funds on in the Cayman Islands, among which you will find options such as:
Hedge funds; Private Equity Funds; Real Estate Funds; Distressed Funds; Other Asset Classes; and Cryptocurrency Funds (which also has to licensed under a separate law) This last area we mentioned is gaining special importance in the Cayman Islands lately due to the impressive development of the Cayman Islands’ telecommunications infrastructure during the last years.
The process for establishing a Cayman fund
The establishment of each fund in the Cayman Islands may have particularities that make each case unique. Nevertheless, in general, an investor or a family office can establish a fund in the Cayman Islands by following this process:
Drafting an offering document setting out the terms of the offering and the fund’s shares. Prepare the Memorandum and Articles of Association, which will be used to set up the company to conform to the offering document. Next, incorporate your preferred type of Cayman company with the Registrar of Companies. Appointments of various officers and service providers (such as directors, investment manager, administrator, auditor, valuation services, bankers, etc).
The fund’s registered agent in conjunction with the manager must duly fill out and submit to CIMA in addition to the following documents:
Certificate of incorporation; Constitutional documents; Fund’s Offering Memorandum; Fund’s Administrators’ Consent Letter; and Fund’s Auditors’ Consent Letter.
Who are we, and what can we do for you?
After almost three decades of work at Privatus Maximus we have managed to consolidate a network of experts around the world. Part of that network of experts is comprised of the best financial service providers in the Cayman Islands, one of our all-time favorite jurisdictions.
Our work together with the most prestigious experts of the turquoise paradise is what allows us today to offer our readers a variety of financial services, among which is the establishment of investment funds in this favorable jurisdiction.
So, what are you waiting for? Contact us right now to start the process of establishing a mutual fund in the turquoise paradise!