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Establishing a subsidiary gives you a legal presence separate from your parent company and provides a space to create a new workplace culture for the area. While these factors can be beneficial, you will want to consider the demands of incorporation and if you’re prepared for the process.

How to set up a Cayman Islands (UK) subsidiary

Establishing a subsidiary may vary based on the type of entity you want to set up. However, the basic process is as follows:

  1. Reserve your company name with the local registrar.
  2. Complete the incorporation applications and submit the required documents.
  3. Return signed consent forms.

The Cayman Islands has a basic legal framework, and the simplicity of the incorporation process allows you to complete the process fairly easily. You will face several expenses, both in the fees for applying for incorporation and the additional costs such as traveling to the country, hiring legal support and paying for property to conduct business.

Every year following incorporation, you will also have to pay an annual fee to maintain your entity in the Cayman Islands.

Cayman Islands (UK) subsidiary laws

The island nation has a few key requirements for incorporation. You will need to submit this information when you apply with the local registrar:

  1. Memorandum of Association: This document defines the scope of your company and why you wish to incorporate in the area. The registrar will use this document to determine if incorporation is appropriate based on your goals. 
  2. Articles of Association: These articles can also be referred to as by-laws, and they describe how your company is run. Your Articles of Association should also name the directors and officers and their powers within the company. 
  3. Registered property: You will need a property in the Cayman Islands for conducting business. Whether you rent or own, you will need to include the address in your Memorandum of Association. You should also ensure the property is zoned for the business you plan to conduct. 

Enter new markets with G-P — no subsidiary required.  

Beat the competition and enter new markets in days with G-P. We’ve paired our team of in-country experts with our SaaS-based Global Growth Platform™ to help you hire compliantly in 180+ countries, eliminating the need to set up local entities or subsidiaries. Get in touch today to learn more about how we can streamline the global growth process.

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