Moving your Fintech Business to the Cayman Islands

Fintech businesses known locally as virtual asset service providers (“VASPs”) are becoming increasingly popular in the Cayman Islands. Since the introduction of the Virtual Asset (Service Providers) Act, the Cayman Islands has seen a steady increase in the number of virtual asset service provider entities establishing crypto funds, token issuers, virtual asset trading platforms, DAOs, DeFi’s, IP holding companies, and centralised and decentralised exchanges under the new regulatory regime.

For a number of reasons, we are also experiencing a need for these virtual assets and other blockchain technology projects to have a real, physical presence here in the Cayman Islands. In those circumstances, we have been referring our clients to the Special Economic Zone (“SEZ”) operated by Cayman Enterprise City (“CEC”).

Below we have answered the most commonly asked questions in this regard.

Why choose the Cayman Islands for my Fintech or blockchain technology project?

With so much uncertainty in the world, it’s reassuring to know there is a place where media and technology companies and start-ups from across the globe can enjoy a safe, secure and appropriately regulated environment to develop and grow their businesses. The politically and economically stable Cayman Islands is the ideal jurisdiction for product development, business growth and asset protection. This tax-neutral British Overseas Territory is a Leading International Financial Centre and the hedge fund capital of the world. It provides the strength of English Law and IP protection and is strategically located just one hour from Miami and three hours from New York City, and has multiple direct flights to major US cities and London.

The spirit of entrepreneurship prevails here. Cayman’s pro-business Government believes in a symbiotic relationship with business and has ensured the environment is right for you to succeed, by not penalising success with excessive taxation and over-regulation. They have put in place very appealing concessions, through a SEZ that makes it cost-effective and time-efficient to set up and operate your international business from here. The jurisdiction is well managed and has attracted major financial institutions, leading law firms and accounting firms and there’s a sophisticated business and IT infrastructure to support your business. Cayman offers a very high standard of living, has excellent schools and medical facilities and there is every kind of dining, sporting and leisure activity you could imagine.

Why Cayman Tech City?

Cayman Tech City, part of the CEC SEZ, provides a time-efficient and cost-effective solution for media and technology development businesses seeking to establish a physical presence in the Cayman Islands. There are currently 125+ such businesses operating from within Cayman Tech City, 25 of which are involved in FinTech development activities utilising innovative blockchain technology.

Once your Cayman Islands company has been incorporated by Stuarts Humphries (“Stuarts”), Cayman Tech City will guide you through the licensing process, including by assisting with (1) your business license application, (2) your work visa applications and (3) the set-up of your physical office. Companies set up in the SEZ have access to the following benefits/concessions granted by the Cayman Islands Government:

• The time-efficient business licensing regime enables you to be set up and legally operational in your staffed Cayman office within 4-6 weeks (No H1-B visa problems)
•   Renewable 5-year work/residency visas for staff from any country in the world, processed in 5 days
• A cost-effective platform for rapid business growth
• Access to CEC’s coveted business network of Cayman contacts
• Access to CEC’s concierge relocation services
• Be part of a tech cluster with massive cross-marketing opportunities
• Access to Tier-3 offshore data centres and cutting-edge fibre connectivity
• Access to  CEC’s jobs portal and relocation and recruitment services
• Access to exclusive community networking, educational and social events

Read the PDF on Moving Your Fintech Business to the Cayman Islands. 

How Cayman Enterprise City and Stuarts Work Together: FAQ’s

1. How do clients typically engage with Stuarts for establishing a physical presence in the Cayman Islands?

Clients connect with Stuarts via our website, client referrals, social media, or marketing channels. When clients express an interest in setting up a business in the Cayman Islands, we assess their eligibility for admission into the SEZ If they qualify, we refer them to our partners at CEC.

CEC, in turn, frequently introduce their clients to Stuarts and we have a strong working relationship.

2. What is the process for incorporating a company in the SEZ?

Once we determine that a client’s business aligns with the SEZ requirements, we initiate the incorporation process. This includes:

• Providing a list of required due diligence documents and necessary forms.
• Collecting key company details such as shareholders, directors, officers, and authorised share capital.
• Offering a legal fee quote for the incorporation process.

If the client is not already in contact with CEC, we advise them to connect with CEC for details on their services and associated fees, which depend on their business licensing and office space requirements.  

3. How do Stuarts and CEC collaborate during the incorporation process?

Stuarts and CEC maintain close communication throughout the company incorporation process. Key steps include:

• Company Incorporation: Once the incorporation documents are finalised and stamped by the Companies Registry, Stuarts provides them to CEC along with supporting letters and confirmations required by the SEZ Authority.
• Trade Certificate Application: CEC prepares an initial draft of the cover letter, which is finalised with the client and signed off on by Stuarts’ attorneys. CEC then submits the application for the Trade Certificate and liaises with the SEZ Authority to secure the company’s licensing.

4. What role does CEC play in work permit applications?

CEC manages initial work permit applications and renewals for companies operating within the SEZ. However, Stuarts may be consulted on a case-by-case basis, particularly if a client or their employees were residing in the Cayman Islands prior to setting up their SEZ company or if they require specific legal advice on a specific circumstance.

5. How does this collaboration benefit clients?

By working together, Stuarts and CEC provide a seamless, efficient service, ensuring that clients experience a streamlined incorporation and licensing process. Stuarts remains available to assist clients throughout the process and are proud to have facilitated the registration of over 10% of all SEZ entities in the Cayman Islands.

Learn more about Stuarts' Fintech, Blockchain and Web3 Services.

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