Exempt companies are the most common form of offshore company in the Cayman Islands and are used:
to hold assets including intellectual property and real estate,
for financing and raising capital,
for the securitisation of loans,
for joint ventures and risk sharing, and
for asset transfers.
An exempted company may not trade in the Cayman Islands with any person, firm or corporation except in furtherance of the business of the exempted company carried on outside the Cayman Islands unless such exempted company holds a licence to carry on business in the Cayman Islands. An exempted company is also restricted from owning land in the Cayman Islands without the consent of the Financial Secretary of the Cayman Islands. In addition, an exempted company is prohibited from making any invitation to the public in the Cayman Islands to subscribe for any of its shares or debentures.
Click here to consider if you are eligible to incorporate a Cayman Islands Exempt Company.
You can also find information on the costs of setting up a Cayman Islands Exempt Company here.