The Cayman Islands Exempted Company — When and Why to Use It (2026)

Cayman Islands Exempted Company: 0% tax on income, gains, dividends, royalties. Standard for hedge funds, PE funds, venture capital, and large holding structures. NOT a structure for most founders — annual costs of $5,000–20,000 and substance requirements make it disproportionate unless you're managing $10M+ in assets or structuring a fund. This article explains the genuine use cases and when the alternative (BVI, UK Ltd, Cyprus) is more appropriate.