From Solomon Harris

Reasons tech companies should consider the Cayman Islands new Special Economic Zone

The new Cayman Enterprise City (‘CEC’), based in a new Special Economic Zone (‘SEZ’), has been designed to attract knowledge-based industries to the Cayman Islands (‘Cayman’). There are potential benefits for multinationals or start-ups to take advantage of the extra concessions being made by the Cayman Government, provided they operate in the fields of internet or information technology; media, marketing and film; biotech and life sciences; commodities and derivatives, education and training; or academia.

Is this all about tax?

As the CEC is based in a tax neutral jurisdiction, then there are going to be the usual tax benefits. These include no corporation tax, capital gains tax, sales tax, income tax, payroll tax or import duties. The SEZ also offers particular tax benefits for the future income streams of its target industries, most notably the ability to hold Intellectual Property (‘IP’) within the tax-exempt CEC zone and then licence it internationally. Academic institutions and other organisations which are developing new technology should consider the potential benefit of having their IP held offshore from an early stage of its development as part of their overall business strategy. The earlier this is done the greater the opportunity to maximize the return on the research investment and to avoid future problems with relocating valuable IP assets at a later date.

Why do business from Cayman?

Cayman is a safe English-speaking British Overseas Territory with a robust legal system based on English common law. It has a very pro-business regulatory environment and a government that welcomes direct foreign investment. It is one of the world’s leading financial centres and meets the highest anti-money laundering compliance requirements (it is white listed by the Organisation for Economic Cooperation and Development). It is the world’s most popular hedge fund jurisdiction, with first-class financial service providers from around the globe and a well-educated local workforce experienced in all aspects of financial services. The capital, George Town, is in the USA’s Eastern Time Zone, only one hour’s flight from Miami and three and a half hours from New York or Toronto, with direct flights to London’s Heathrow.

Why use the CEC?

The aim of the CEC is to enable companies from around the world to establish quickly and easily new companies with a physical presence in Cayman, with staff on the ground. As a niche research and technology hub the CEC should generate cross collaboration and offer excellent networking opportunities in a pro-business environment with sophisticated IT and telecommunications infrastructure. For those looking to expand into North American markets or Latin America, then the CEC is the ideal base of operations.

How does it work?

To help develop an inspirational, entrepreneurial technology hub which will generate tax-exempt active business income in Cayman, the CEC has developed its own stripped-down offshore company registration and set up. As well as no reporting or auditing requirements, the CEC offers a three to four week fast-tracked set-up of operations. You can relocate staff to the CEC from any country and the CEC will arrange for the grant of five year work and residence visas for staff within five days provided that they fulfil the immigration requirements and meet background checks.

Solomon Harris

Solomon Harris is CEC’s Preferred Channel Partner and we have many years’ experience in establishing a variety of Cayman based entities, including SEZCos. Our award winning corporate team can advise on any Cayman legal matters arising from setting up business in the CEC and can liaise you’re your organization’s onshore Counsel. If you are interested in further information on relocating to the CEC, in the first instance please contact Richard Addlestone in our Corporate Department.

For more on this story go to: http://www.solomonharris.com/news-updates/techs-on-the-beach-cayman-sets-up-an-it-and-ip-hub