Proven Offshore Jurisdiction For Startups, Investment Funds and Holding Companies

The Cayman Islands are widely recognised by investors as a reputable offshore jurisdiction for startups, investment funds and holding companies. The jurisdiction combines English common law, zero direct taxes and a financial services framework aligned with OECD, FATF and EU standards.

No. In October 2023, the European Union removed the Cayman Islands from its grey list. The jurisdiction is also not on the FATF grey list and not on the OECD or EU blacklists.

The Cayman Islands are considered a low-risk jurisdiction due to their established regulatory infrastructure, recognised compliance reforms and legitimate privacy protections for shareholders and investors.

Cayman structures are commonly used by venture capital funds, international holding companies, technology startups and Web3 projects that operate globally rather than locally within the Islands.

The Cayman Islands offer several corporate vehicles designed for different business and investment purposes, including Exempted Companies, Ordinary Resident Companies, Limited Liability Companies, Exempted Limited Partnerships and Foundation Companies.

An Exempted Company is the most common Cayman structure. It is typically used for startups, holding companies and investment funds that conduct business primarily outside the Cayman Islands.

A Cayman LLC is similar in structure to a U.S. Delaware LLC. It is often used for joint ventures, token projects and flexible investment structures requiring contractual freedom.

An Exempted Limited Partnership is the standard structure for private equity and venture capital funds. ELPs benefit from Cayman’s tax neutrality and are commonly paired with fund management and investment activities.

No. Exempted Companies pay no income, corporate or capital gains tax. They may also apply for a Tax Exemption Certificate that guarantees tax neutrality for up to 30 years.

A Foundation Company is a hybrid structure frequently used in the Web3 and DAO ecosystem, as well as for asset governance and philanthropic purposes.

Cayman’s combination of English common law, tax neutrality, recognised compliance standards and flexible legal vehicles makes it suitable for Web3 projects, token ecosystems and decentralised governance structures.

The appropriate Cayman structure depends on the business model, investment strategy and compliance needs. A legal review helps determine the most suitable vehicle and the associated formation and ongoing compliance requirements.