Launch Your Cayman Islands
Holding Company
A Cayman holdco for funds and private equity, chosen for the right job.
The Cayman Islands is the world's leading fund and private-equity domicile: tax-neutral, sophisticated, and globally familiar. Orbit builds the vehicle, handles economic substance by activity, and prepares the Form 5471 and investor-level information your United States tax preparer needs, so tax-neutral never becomes an expensive surprise.
Key Jurisdiction
Considerations
Setting up a corporate entity in the Cayman Islands comes with standard regulatory compliance items. Orbit ensures complete legal alignment with Cayman Islands Monetary Authority and registered office requirements from day one.
100% Fully Managed Support
From resident nominee directors to local corporate secretary requirements, we cover every compliance checkpoint seamlessly.
Tax on income, gains and dividends
Tax-neutral pooling, so tax falls at the investor level rather than being trapped in the fund. That is exactly what a pool of investors from many countries needs.
Global fund and private equity domicile
A sophisticated framework built for funds, with world-class service providers and global investor familiarity. It is the default for hedge funds, private equity, venture capital, and the special purpose vehicles beneath them.
PFIC is the question to ask first
A tax-neutral vehicle holding passive assets can be a Passive Foreign Investment Company for United States investors, which brings Form 8621 and a materially worse tax outcome without a Qualified Electing Fund or mark-to-market election. Structure the answer before the first close, not after.
Economic substance regime
Economic substance rules apply by activity. Pure-equity holding companies face a minimal test, but an economic substance return is still required.
Quick Facts
| Feature | Value | Why it matters |
|---|---|---|
| Best for | Special purpose vehicles, private equity vehicles, fund platforms, initial public offering holdcos, family wealth | Widely recognized offshore standard |
| Setup speed | About 3 to 5 business days | Fast and efficient |
| Minimum share capital | None (typical: USD 1) | Minimal entry cost |
| Local director needed | No | 100% foreign ownership |
| Company secretary | No (usually included via service provider) | Simple governance |
| United States income tax treaty | None. A Tax Information Exchange Agreement is in force | Plan with no treaty relief |
Special purpose vehicles, private equity vehicles, fund platforms, initial public offering holdcos, family wealth
Widely recognized offshore standard
About 3 to 5 business days
Fast and efficient
None (typical: USD 1)
Minimal entry cost
No
100% foreign ownership
No (usually included via service provider)
Simple governance
None. A Tax Information Exchange Agreement is in force
Plan with no treaty relief
What’s Included & Pricing
Complete transparency. Review what is covered under our standard package and how our tailored corporate pricing is structured.
Standard Package Inclusions
- Incorporation via licensed registered agent
- Registered agent and registered office
- Annual government compliance
- Economic substance and annual return filing
- Accounting and recordkeeping
Tailored Transparent Pricing
We tailor pricing based on your business profile, structure, and scope of services. Costs are discussed and confirmed after a quick review of your requirements, ensuring you only pay for what you actually need.
Why Cayman Islands Works for Holding Companies
Unmatched Neutrality
While Cayman offers no tax treaty benefits, it offers unmatched neutrality for funds and holding vehicles.
Tax Neutral
0% tax on income, gains, and dividends at the entity level.
No Withholding Tax
No withholding tax on outbound payments.
Light and Fast
Light regulation and fast incorporation.
Common Law Protection
A common law legal system with strong investor protection.
Global Recognition
Broad global recognition, preferred by funds, initial public offerings, and institutional investors.
Tax Regime For Holding Companies
Corporate income tax
0%. There is no income or profits tax.
Withholding tax on dividends
0% on dividends, interest, and royalties.
Capital gains tax
0%. There is no tax on share disposals.
Stamp duty
None on share transfers.
Tax treaties
None significant. Cayman is typically used for neutrality rather than treaty access, and there is no United States income tax treaty. A Tax Information Exchange Agreement with the United States is in force.
United States owner treatment
A Cayman company owned more than 50% by United States shareholders is generally a Controlled Foreign Corporation, with income picked up under Subpart F or Global Intangible Low-Taxed Income and Form 5471 filed with the United States return. Where United States investors hold a minority interest in a passive vehicle, Passive Foreign Investment Company rules and Form 8621 usually govern instead. Orbit prepares the records and coordinates filing with licensed United States tax partners.
Corporate Tax Calculator
Estimate corporate tax payable on a Cayman Islands holding company.
The Cayman Islands levy no income, profits, capital gains or withholding tax. Tax falls at the investor level, so United States owners and investors should model the Controlled Foreign Corporation or Passive Foreign Investment Company position separately.
What You Get With Orbit
A fully managed, end-to-end statutory solution for international corporate holdings.
Pre-incorporation planning
Structure and ownership design, use-case validation, and an early view on Controlled Foreign Corporation versus Passive Foreign Investment Company treatment for United States holders.
Company setup
Incorporation through a licensed Cayman provider, registered office, and statutory filings.
Governance
Director appointments, registers, and annual minutes.
Compliance
Annual returns, government fees, and economic substance filings.
Accounting
Recordkeeping and preparation for financial reporting.
United States reporting support
We assemble the Form 5471 package, earnings and profits schedules, and the investor-level data behind Form 8621 where relevant. Filing and Internal Revenue Service representation are handled by licensed United States tax partners.
Banking
Support for offshore account opening.
How The ProcessWorks
A highly structured compliance timeline tracking setup steps from day zero kickoff to annual filings.
Kickoff and KYC (Day 0)
Collect shareholder and director documentation and define the entity use case.
Incorporation (3 to 5 days)
Orbit coordinates with a licensed Cayman provider for filing and registration.
Registered office setup
The company is issued with a certificate of incorporation and a statutory address.
Go-live
Bank account opening and recordkeeping initiated.
Annual compliance
Government renewal, annual return, and economic substance filings, with the United States reporting package prepared on the same cycle.
What we need from you
KYC documentation (identification, proof of address) for shareholders and directors.
Ownership chart and intended activity summary.
Source of funds and business purpose.
United States investor profile, so we can scope Controlled Foreign Corporation versus Passive Foreign Investment Company reporting early.
Preferred bank jurisdictions, if banking is required.
Who this is ideal for
Special purpose vehicles
Private equity vehicles
Fund platforms
Initial public offering holdcos
Family wealth
Tell us your use case
Ready to get started?
Trusted by high-
growth organizations
"I've been working with Orbit since the beginning of 2026 and couldn't be happier. They are professional, detail-oriented, responsive, and always timely. As the owner of a one-person corporation, I greatly appreciate having such a reliable accounting team in my corner. Highly recommended!"
Maja Djikic
Consultant
Global Entity Management Pricing
Global Investment Standard
Cayman Islands Holding Company
Global Entity Management Service
Pricing
Custom Pricing
Setup fee plus annual management fee per entity. Multi-entity discounts available.
The widely recognized offshore standard for funds, special purpose vehicles, and initial public offering holdcos, fully tax-neutral with light regulation.
Jurisdiction Quick Facts
Why Cayman Islands Works
- Tax-neutral at the entity level on income, gains, and dividends
- Preferred by funds, initial public offerings, and institutional investors
- Common-law system with strong investor protection
- Light regulation and fast incorporation
Standard Package Inclusions
- Incorporation via licensed registered agent
- Registered agent and registered office
- Annual government compliance
- Economic substance and annual return filing
- Accounting and recordkeeping
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Frequently Asked Questions
No.
Usually banks elsewhere are preferred, and we prepare the file for whichever jurisdiction fits your profile.
Not at the entity level. There is 0% tax on income, gains, and dividends in the Cayman Islands.
Minimal for pure holding entities, though an annual return is still required.
Not unless the company is regulated or listed.
No. Ultimate beneficial owner records are private but maintained with the provider.
Not by itself. Cayman is tax-neutral at the entity level, so the tax falls on United States owners and investors under the Controlled Foreign Corporation or Passive Foreign Investment Company rules.
No. Orbit prepares the books, the Form 5471 package, and the supporting schedules. Filing and Internal Revenue Service representation are handled by licensed United States tax partners.