The Cayman Islands recorded the largest percentage increase in new company incorporations among offshore jurisdictions in the first half of this year, according to a report by law and fiduciary firm Appleby.
A total of 5,391 new companies registered in the first six months of 2014 in Cayman represented a 17 percent increase compared to the second half of 2013, when 4,620 new companies were incorporated.
Between July 2013 and June 2014, the number of active companies on the Cayman Island registry increased by 3 percent to a record high of 97,747.
“During the first half of 2014, the Cayman Islands powered through the 5,000-level of new company incorporations for the first time in a six-month period since 2008,” said Richard McMillan, managing director of Appleby Trust (Cayman) Ltd. “The Cayman registry has been following a straight upward trajectory since 2011 and is closing in on the symbolic 100,000 level.”
The vast majority of companies that make up the register are exempted companies that carry out their activities outside of the Cayman Islands. Appleby’s “On the Register” report noted that new company registrations across all monitored offshore jurisdictions increased by 4 percent in the first half of 2014 compared to the preceding six months. Overall, 46,455 new offshore company incorporations were recorded.
The first half of this year showed that the number of active companies on the offshore company registers is holding steady, said Farah Ballands, partner and global head of Fiduciary & Administration Services at Appleby. “Cayman and Mauritius emerged as clear hot spots where we can see company creation activity looking very strong.”
The number of new partnership registrations also continued their strong growth. Between July 2013 and June 2014, 2,586 new partnerships were registered in Cayman – a jump of 22.5 percent compared to the same period in 2012/2013. This growth in new partnership registrations followed increases of 4.87 percent, 17.17 percent and 15.77 percent in the three previous years.
Fund numbers remained flat between the second and third quarter of this year, with a total of 11,292 registered, administered, licensed and master funds. While the number of master funds continued to climb from 2,635 to 2,733 in the first nine months, registered funds dropped from 8,235 to 8,056. Without the 2,733 master funds, which are required to be registered since 2012, the number of funds registered with the Cayman Islands Monetary Authority would have declined by 7.55 percent since 2011.