Exempt Company

As the name implies, an exempted company is exempted from taxes for a period of up to 20 years. Once a company is incorporated, application is made to His Excellency the Governor of the Cayman Islands for tax exemption. An exempted company can be set up for a variety of purposes, such as:

• A limited duration company, which is established for a specific purpose and period of time.
  
• An investment company, which allows for funds accumulated through investment companies to be deposited in the Cayman Islands; however, funds invested outside the Cayman Islands are subject to tax legislation of the country of investment. Capital gains tax is not paid in many jurisdictions by foreign companies and investments can be diversified worldwide.
  
• A shipping company, which can own and operate ships with the advantage of a British registration while maintaining relatively low tonnage taxes.

An exempted company is not permitted to own land in the Cayman Islands.