The idea of running a company capable of earning 100 percent tax-exempt revenue on international business seems more fantastical than plausible. Through the work of Cayman Enterprise City (CEC), companies now have the opportunity to maintain cheaper capital and increased shareholder value.

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The requirements? A three to four-week time frame, about $4.5k, and at least one employee willing working in the tropical conditions of the Cayman Islands.

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Located just a direct flight away from Miami, New York, Texas and London, CEC looks to enable companies from across the globe to easily, and cost-efficiently, have a genuine off-shore presence to generate an active business income. An income that can enjoy the professional perks of the Cayman Island’s zero percent corporate tax rate.

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Chief Executive Officer of CEC Charles Kirkconnell saw the opportunity to create a world-class knowledge-based special economic zone that brings together new industries.

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Kirkconnell launched CEC in February of 2012 and with more than 170 companies already on board, he’s not looking back.

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“We are a startup. And like many tech companies, we are creating this from scratch,” he says. “We were involved with the creation of the special economic zone. There was no structure. We were also involved with work that allowed governments to put laws and regulations in place and identify the right people to push the project forward. We did this all while finding the funding to do so.”

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In fact, the key to this business endeavor is the special economic zone. In this zone, there are no corporate, income, sales or capital gains taxes. There are also minimal government regulations regarding reporting and filing requirements making for an easy and profitable business plan. The main goal of this special economic zone is to make it more cost-effective and time-efficient to set up physical companies in the Cayman Islands. The purpose of setting up this structure is so that companies are able to move quickly and actually have employees working within three to four weeks.

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“Whitelisted” by the Organization for Economic Co-operation and Development (OECD), the Cayman Islands have some of the highest compliance requirements and are considered a safe place to do business. It is the number one hedge fund jurisdiction and the 10th largest global financial center in the world. Seems obvious location for this new and emerging tech hub.

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In the beginning, CEC was looking to exemplify an idea seen in other areas of the world, including Dubai. The idea was to replicate the tech success seen around the world and have globally recognized brands in the Cayman Islands.

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By establishing within CEC, businesses can have access to the following benefits/concessions granted by the Cayman Islands Government:

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100% exemption from income tax
100% exemption from corporate tax
100% exemption from capital gains tax
100% foreign ownership permitted
100% exemption from import duties
Guaranteed ten-day fast-track set up of operations
A five-year residency granted for employees and their dependents
A cost-effective strategic base of operations
Easy access to the lucrative North and Latin American market
 

It was Kirkconnell’s job to lead that initiative. He decided to focus on efficiency.

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“You have to think about what your footprint in the Cayman Islands is going to look like,” he says. “How many people and how much space? From there, we come back with a space and agree on commercial terms, then we engage the Cayman legal counsel. While that happens, the applications are sent to the regulator and proper authorities. CEC files them on your behalf – specifically the trade certificate.”

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This entire process, including submitting work visas for employees, takes about five working days each to submit. A very quick process in the business world. After everything is arranged, the next step is simply to get on a plane and move to the Cayman Islands.

 

“We have reasonably significant companies that have already chosen to do this.”

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Perhaps the most significant thing they do, the relocation process easy – and is one less thing a growing tech company needs to worry about. Once a company joins their team, CEC works to find information, walk clients through specific issues such as housing and schooling and, ultimately, make the transition to the Cayman Islands as easy as possible.