The number of registered companies in the Cayman Islands reached an all-time high, according to statistics released by the Cayman Islands General Registry. At the end of September there were 106,291 active companies on its register, after a steady increase since the same time last year, which is a 7% growth over last year, with Limited Liability Companies (LLCs) representing the bulk of the companies. Cayman Finance CEO Jude Scott said investors are attracted to Cayman for a number of reasons that have helped boost the register.
“Leading institutional investors are engaged in a flight to quality, moving away from other jurisdictions and investing in the Cayman Islands in growing numbers because we have a strong, diversified financial services industry supported by high standards, a robust legal system and excellence in service,” he said in an associated press release issued by Cayman’s largest investor, Dart, and published on the international PR news wires.
“Our legal and regulatory regimes have established Cayman as an efficient and effective neutral hub, enabling parties from around the world who are domiciled in countries that may have differing laws, regulations, tax rules, and customs to benefit from doing business with each other,” he added.
Scott said Cayman provides a number of benefits to investors that they may not be able to find in other centres, such as access to an “unparalleled combination” of industry sectors including investment funds, insurance, reinsurance, capital markets, banking, and trusts.
“The Cayman Islands attracts investors because it is a transparent, cooperative jurisdiction that already meets or exceeds the full range of globally accepted standards for transparency and cross-border cooperation with law enforcement and tax authorities,” he added.
The Cayman Islands economy is believed to have fuelled the improvement in the registry, with GDP growing by 2.8% in 2017 and a projected increase to 3% growth by the end of this year, if Treasury forecasts prove accurate.
Economists say the growth is partly due to the significant gains in financial services and tourism. Construction also grew by 7.2% last year, fuelled by the growth in stay-over visitors, as many realtors believe the increase in overnight visitors is fuelling real estate sales, which in turn fuel construction.