Let's Connect
  • Award-Winning · 1080+ Clients · 45+ Countries

Cayman Islands Company & Fund Formation for Indian Entrepreneurs

Cayman Islands company formation is the process of incorporating an Exempted Company or registering an Exempted Limited Partnership (ELP) under Cayman Islands law. The Cayman Islands is the world’s premier fund domicile approximately 70% of global hedge funds and over 17,700 private funds are registered with CIMA (Cayman Islands Monetary Authority). The jurisdiction offers complete tax neutrality (0% CIT, 0% CGT, 0% WHT, no VAT) with a 20-year government undertaking guaranteeing no future taxation. Indian entrepreneurs must navigate strict FEMA/RBI compliance and the absence of a DTAA with India. Comply Globally provides expert guidance across 45+ countries.

Book a Free Consultation
Watch how it works
  • No setup hassle
  • Senior advisors
  • Transparent pricing

500+

Companies launched

40+

Countries served

4.9

Client rating

+12 today

Founders onboarded

Incorporated in 7 days

Average turnaround time

500+

Businesses incorporated

40+

Countries served

98%

Compliance success rate

7 days

Avg. setup time

$0

Hidden fees, ever

Our Cayman Islands Services

What We Help You With in the Cayman Islands

Exempted Company formation, fund structuring, CIMA registration, Economic
Substance, AND Indian FEMA/RBI advisory — all from a single point of contact.

  • Exempted Company Formation

Incorporate a Cayman Exempted Company in 1-3 business days through a licensed CSP (Corporate Service Provider). We handle name reservation, Memorandum & Articles, certificate of incorporation, and 20-year tax exemption undertaking. No minimum capital. 1 shareholder + 1 director minimum. No residency requirement. Annual government fee from USD 853. Companies can obtain a government undertaking guaranteeing no future taxation for 20 years (extendable by 10). Source: Cayman Registrar.

  • Fund Structures Cayman's Core Strength

The Cayman Islands dominates global fund formation. We assist with: Exempted Limited Partnerships (ELPs) for PE/VC — 40,763 active ELPs; Exempted Companies for hedge funds; Segregated Portfolio Companies (SPCs) for multi-strategy funds; Unit Trusts for Japanese institutional investors. All private funds must register with CIMA within 21 days under the Private Funds Act. We coordinate CIMA registration, fund documentation, administrator appointment, and auditor engagement. Source: CIMA, Private Funds Act.

  • FEMA & RBI Compliance THE Critical Service

Essential for Indian GPs, sponsors, and investors in Cayman structures. We handle: Form ODI filing, APR by 31 December, FLA to RBI by 15 July, Schedule FA disclosure in Indian tax returns, SEBI advisory for fund managers with Indian investor base, and round-tripping risk assessment. No DTAA exists — Section 91 relief is limited since Cayman tax = 0%. CRS ensures Indian authorities receive all Cayman financial data automatically. Source: RBI Master Direction on ODI.

  • Economic Substance Act Compliance

All Cayman entities must file an ES Notification by 31 January annually — even if not conducting relevant activities. Entities performing any of 9 relevant activities must satisfy the ES Test: adequate employees, expenditure, and core income-generating activities (CIGA) in Cayman. Investment funds registered with CIMA are generally exempt. Pure equity holding companies face reduced requirements. Penalties for non-compliance are substantial. Source: DITC, ES Act (2026 Revision).

  • Beneficial Ownership BOT Act

Under the Beneficial Ownership Transparency Act (BOT Act, effective July 2024), all in-scope entities must establish and maintain a BO register with their licensed CSP. CSPs verify and file information with competent authorities. Registered funds (mutual/private) can opt for an alternative compliance route via designated contact persons. From February 2025, legitimate interest access requests are possible for money laundering/terrorist financing investigations. Source: BOT Act, CIMA.

  • Ongoing Compliance

Annual government fee payment (from USD 853), ES Notification by 31 January, BO register maintenance with CSP, annual return to Registrar, CIMA annual filings (if regulated fund/entity), and coordination with Indian FEMA/RBI obligations. From 2026, consolidated annual payments simplify billing. We provide a unified compliance calendar covering both Cayman and Indian deadlines. Total annual cost: typically USD 8,000-25,000 depending on structure complexity.

  • 0% All Direct Taxes
  • ~70% Global Hedge Funds
  • No DTAA TIEA Only with India
  • 17,700+ Registered Funds
  • 20 Yrs Tax Guarantee
  • CIMA Regulated

Why Partner With Comply Globally for Cayman?

Our 4 Brand Promises Critical for Offshore Structures

Speed of Action

We respond within 4 hours. Exempted Company formation: 1-3 business days. Fund structuring advisory within 48 hours.

Same-day incorporation available

Accuracy & Competence

Every Cayman structure reviewed for ES + BOT Act + CIMA + Indian FEMA/SEBI implications before incorporation.

100% compliance record · 4.7★ rating

Ease of Doing Business

One contact for Cayman CSP + CIMA + Indian FEMA + SEBI. No juggling offshore lawyers and Indian compliance.

Single Point of Management · 45+ countries

Cost Competitiveness

Transparent pricing. Cayman is premium-priced, but we ensure no unnecessary costs are added.

Exempted Company 5.7★ rating

⚠️ CRITICAL FOR INDIAN ENTREPRENEURS: India and the Cayman Islands have NO DTAA — only a TIEA. Indian domestic WHT rates apply fully on India-Cayman payments. CRS automatic exchange with 100+ countries (including India) ensures your Cayman financial data reaches Indian tax authorities. RBI, SEBI, and the Income Tax Department apply heightened scrutiny to Cayman structures. Fund structures have additional SEBI regulatory considerations. Comply Globally ensures genuine commercial substance and full FEMA compliance.

Tax & Fund Framework

Why Are 70% of Global Hedge Funds Domiciled in the Cayman Islands?

The Cayman Islands' tax-neutral status eliminates the fund-level tax layer for global investors

According to CIMA and SEC data, approximately 70% of the world’s hedge funds and over 17,700 private funds are registered in the Cayman Islands. The key structural advantage is tax neutrality: the fund vehicle itself pays 0% tax on income and capital gains. This means investors from 30+ countries can invest through a single Cayman fund, with each investor taxed only in their home jurisdiction. There is no additional tax layer at the fund level. The 20-year tax exemption undertaking provides a government guarantee of no future taxation. For Indian GPs and sponsors, the Cayman structure is the global institutional standard — US pension funds, sovereign wealth funds, and family offices expect Cayman as the fund domicile.
Sources: CIMA · SEC · Private Funds Act · Updated April 2026

Cayman vs BVI vs Mauritius vs Singapore vs Hong Kong — Fund & Holding Comparison

Factor🇰🇾Cayman🇻🇬BVI🇲🇺Mauritius🇸🇬Singapore🇭🇰Hong Kong
Primary Use
Funds (#1 globally)Holding / JVIndia gatewayOperations / HQChina gateway
CIT
0%0%15% (eff ~3%)17%8.25 / 16.5%
India DTAA
❌ TIEA only❌ TIEA only✅ DTAA✅ DTAA✅ DTAA
Fund Regulation
CIMA (institutional)FSC (lighter)FSCMASSFC
Global Hedge Funds
~70%~5%~2%~3%~5%
Annual Cost
$8K – $25K+$2.5K – $5K$5K – $10KSGD 3K – 8KHKD 5K – 15K
Indian Scrutiny
🔴 Highest🔴 Highest🟡 Medium🟢 Low🟢 Low
Setup Time
1 – 3 days1 – 2 days2 – 4 weeks1 – 2 days1 day

Free Compliance Calendar

Get Your Cayman + India Compliance Calendar

Cayman compliance includes annual fees, ES notification (31 Jan), BOT Act
filing, CIMA returns (if regulated), AND Indian FEMA/RBI deadlines.

    📅 Request Your Cayman + India Compliance Calendar

    We map every deadline: government fees, ES notification, BOT Act, CIMA (if fund), AND FEMA/RBI.









    🖐 Where should we send the calendar?





    I consent to Comply Globally contacting me regarding my compliance calendar and related services. Privacy Policy

    What Our Clients Say

    “Setting up our entity in the US was seamless with Comply Globally. They handled every detail with care.”

    Pankaj Kansal

    Director Kansal DelFlo Inc

    “With their support, our expansion into Singapore was quick and stress-free.”

    Dr Arpan Gupta

    Director HiTech Pte

    “Tax and compliance across jurisdictions are no longer stressful—everything is timely and accurate.”

    Brad

    Director AXM

    “Our export documentation for shipments to the US and Europe was flawless and hassle-free..”

    Govinda Venkatesh

    CEO AgriCrop Inc.

    Visa and immigration support for our team in Canada was handled professionally from start to finish.”

    Mamraj Chahar

    Chief Investment Officer in a Family Office.

    They provided a clear roadmap for global growth, covering the US, UK, and beyond.”

    Hariom Malpani

    CEO HAssured Ltd

    From incorporation to compliance, they ensured we stayed on track in every market we entered.”

    Vidhya Raghwan

    Director EmoryTech Inc.

    Initially I was thinking their brand promises as marketing jargon but after taking their services, I can say that they are better than excellent in their brand promises like Speed of action, Cost Competitiveness , Competence etc”

    Deepak Nirwan

    Delaware Distributes

    I could expand my business to 7 countries in 3 years time just because of Connect Ventures / Comply Globally services and able guidance''

    Naveen Melant

    Coretech Global, USA, Singapore, Canada, India

    I had a compliance issue for SalesTax which I was struggling to resolve for over 2 years, they could resolve it in first call itself''

    Edwin

    SureTech Inc USA

    Our Latest Insights

    Stay ahead with expert guidance on global expansion trends and regulatory updates.

    Frequently Asked Questions

    Cayman Islands Expert Answers for Indian Entrepreneurs

    What is a Cayman Islands Exempted Company?

    A Cayman Exempted Company is a flexible offshore legal entity used for international business and investment structures, allowing 0% corporate tax, no capital gains tax, and no withholding tax under Cayman law.

    Why are so many hedge funds based in the Cayman Islands?

    The Cayman Islands is the world’s leading fund domicile, hosting around 70% of global hedge funds due to its tax-neutral regime, strong legal framework, and investor-friendly fund regulations under CIMA.

    How long does it take to set up a company in the Cayman Islands?

    Company formation is very fast and typically takes 1–3 business days, depending on document verification and approval by a licensed Corporate Service Provider (CSP).

    Is there any corporate tax in the Cayman Islands?

    No. The Cayman Islands has 0% corporate income tax, 0% capital gains tax, 0% withholding tax, and no VAT, making it one of the world’s most tax-neutral jurisdictions.

    Do Cayman Islands companies offer tax guarantees?

    Yes. The government provides a 20-year tax exemption undertaking, guaranteeing no introduction of corporate taxation for that period (extendable by an additional period under law).

    Do Cayman Islands structures work for Indian investors?

    Yes, but with caution. India and Cayman Islands do not have a DTAA (only a TIEA exists), meaning Indian tax rules and FEMA/RBI compliance fully apply, and reporting obligations are stricter.

    What is CIMA in the Cayman Islands?

    CIMA (Cayman Islands Monetary Authority) is the regulator for funds and financial services, ensuring compliance for hedge funds, private equity structures, and investment vehicles.

    What are the main risks of Cayman structures for Indians?

    Key risks include high regulatory scrutiny under FEMA/RBI/Income Tax laws, CRS information exchange with India, and lack of DTAA benefits, which can impact taxation and reporting obligations.

    Ready to Start Your Cayman Journey?

    1,080+ Indian entrepreneurs have expanded globally with Comply Globally.
    Book a free 30-minute consultation.

    Let's Connect