0% direct tax, Segregated Portfolio Companies for fund structures, English common law and full LP and SPC suite.
When Cayman Islands is the right call, and when it is not.
CIMA registered Cayman Exempted Companies and Segregated Portfolio Companies are the institutional default for hedge funds, VC and PE. US investors accept Cayman LP/SPC structures with no flip negotiation.
Cayman Foundation Companies act as ownerless issuers for L1/L2 protocols, with VASP (virtual asset service provider) registration available via CIMA. Used by most major DeFi DAOs and L2 rollups since 2020.
When US VCs require a Delaware C-Corp top co but the IP sits offshore, a Cayman ExCo holds the operating subsidiary cleanly. Tax neutral, common law, no public shareholder registry.
Stripe is unavailable, banking takes 90 days, and Economic Substance Law requires real CIGA in Cayman for relevant activities. For a SaaS or e commerce operating company:
PFIC rules trap US shareholders in passive Cayman vehicles; French and German CFC rules attribute Cayman income upward. For mixed cap tables look at:
Working data for Cayman Islands. Cite check each figure before use.
Offshore pricing displayed in USD for clarity. Underlying lines are partially invoiced in native currency; see per line native equivalents below. Cayman government fees (Exempted Company annual fee, ES Notification) shown as a separate passthrough line. FX as of monthly refresh; final invoice reconciles to the actual line currency on the date of charge.
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Each rate, threshold, and deadline below is cited from an authoritative source.
Information is provided for general guidance and reflects tax year 2025 unless noted. Specific situations require advice from a local practitioner. Always confirm against the cited tax authority and registrar before relying on a figure.