INTRODUCTION
The Cayman Islands, which comprises of three islands in the Caribbean Sea south of Cuba, is a British Dependent
Territory that was originally discovered by Christopher Colombus. The financial services sector is one of the main industries in the Cayman Islands, and there is a substantial commitment to the continued development of the offshore financial services industry. The reputation and popularity of the Cayman Islands has increased significantly, particularly in Asia, as it is one of only two offshore centres that is approved by the Hong Kong Stock Exchange for public listings in Hong Kong. The Cayman Islands established its own Stock Exchange in 1997.

LAW AND TAXATION
Cayman Island’s companies law is based on the English common law. There are two types of Cayman Islands companies: the Exempted and the Non-resident. The ongoing licence fees for a Non-resident Company are slightly less than for and Exempted Company but they must submit a more detailed annual return and as such, have not gained great favour in Asa. The Cayman Islands received a Royal decree in 1978 that would free them from taxes forever and this decree remains in force. Exempted Compay names do not have to edn with the suffix ‘Limited’ and may apply for a 20 years tax exemption certificate, further enhancing their tax exempt status. The company name may also be expressed in Chinese characters, so long as its English translation is provided.

In November 2001, a new agreement with the United States (US) for the exchange of information was signed. This provides for the exchange of information, upon request, for criminal tax evasion, civil and administrative matters relating to US federal income. The agreement applies to criminal tax evasion for taxable periods commencing 1 January 2004, and to all other tax matters for taxable periods commencing 1 January 2006.

LOCAL INFRASTRUCTURE
The Cayman Islands is the leading financial centre in the Caribbean with over 584 licenced banks and trust companies present. All the main international accounting firms are present and there are numerous high quality law firms. Communications and transport links are excellent with regular flights from Miami which is only one hour away.

CORPORATE REQUIREMENTS
Chinese names are permitted and can be included on a company’s Certificate of Incorporation.
All Exempted Companies must have a registered office provided by a licenced service provider agent. A minimum of one shareholder and one director are required and corporate directors are permitted. The Registers of Directors, Officers and Charges shall be kept at the Registered Office. A copy of the Register of Directors and Officers must be filed at the Companies Registry but is not available for bublic inspection. Every Exempted Company must keep a Register of Members and the original or a copy should be kept at the Registered Office. Whilst bearer shares are permitted, in practice they are not encouraged and beared share certificates must only be held by approved custodians. Annual returns must be lodged but this does not disclose details of the directors of members.

In April 2001, the Cayman Islands issued new due diligence guidelines requiring disclosure of information on all officers, members, beneficial owners and authorised signatories of Cayman Islands companies to service providers such as agent. This information is required by law for all new companies and must be provide by existing companies within a set transitional period. Such information is confidential, under the Confidential Relationship ( Preservation) Law, which makes it a criminal offence to divulge confidential information or to wilfully obtain or attempt to obtain confidential information relating to a Cayman Islands company.