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Why the Cayman Islands Are Better For Business

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Why the Cayman Islands Are Better For Business

Why the Cayman Islands Are Better For Business

Presented by Cayman Enterprise City

On February 8, 1794, the people of the Cayman Islands rescued the crews of a group of ten merchant ships. The ships had struck a reef and run aground during rough seas.

Legend has it that King George III of the United Kingdom rewarded the Caymanians with a promise never to introduce taxes as compensation for their generosity, as one of the ships carried a member of the King’s own family.

Whether this legend is true or not, the Cayman Islands have a rich history of relying on indirect taxes, making it one of the best places to do business in the world.

5 Reasons It’s Worth Relocating a Company to the Caymans

1. Life is Grand

The Cayman Islands are an English-speaking Overseas British Territory with year-round warmth and state-of-the-art infrastructure and attractions.

Grand Cayman, the largest of the three islands, has an area of about 200 km².

Its most striking features include: the shallow, reef-protected lagoon called the North Sound, as well as the famous Seven Mile Beach along the west of the island.

  • GDP per capita: 14th in the world – The highest standard of living in the Caribbean.
  • Ranked ‘The friendliest place on earth to live and work’ in a recent HSBC expat global survey.
  • Ranked: “The Caribbean’s Best Beach” – Seven Mile Beach by Caribbean Travel & Life

2. The Ideal Business Jurisdiction

Located in the Eastern Standard Timezone and 3.5 hrs from Toronto and 3 hrs from New York City, Cayman is the ideal business jurisdiction. The island also has direct flights to London, the gateway to Europe.

The Cayman Islands have the some of the highest anti-money laundering compliance requirements and offers a pro-business regulatory environment.

3. Taxation

The Caymans have a long history of having no direct taxes on residents and Cayman Island companies.

  • No corporate tax
  • No capital gains tax
  • No sales tax
  • No income or payroll tax

This has partly allowed the Caymans to become the sixth largest global financial centre and the #1 home to hedge funds in the world.

4. A Gateway to World-Class Companies and Services

The Cayman Islands is home to many global institutions including banking, accounting, and law firms.
Companies in the Cayman:

  • 40 of 50 of the world’s top banks have branches
  • The Big 4 accounting institutions
  • Global law offices such as Maples & Calder

It has a world-class infrastructure, excellent schools, colleges and medical facilities, plus every conceivable form of entertainment, sporting, dining and leisure facility.

5. Special Economic Zones

The Cayman Islands have recently introduced “Special Economic Zones” that specifically cater to exempted companies, creating an alternative licensing regime, as well as a number of additional incentives for entities wishing to establish a physical presence in the Islands.

  • 100% exempt from corporate, capital gains, sales, income tax and import duties
  • 100% foreign ownership permitted
  • Five year renewable work/residence visas granted within 5 days
  • 3-4 week fast-track set-up of operations
  • Intellectual Property owned offshore
  • No government reporting requirements
  • Strategic base with easy access to lucrative North and Latin American markets

One More Reason: Cayman Enterprise City

Cayman Enterprise City (“CEC”) is an award-winning Special Economic Zone located in the tax-neutral Cayman Islands, created for knowledge-based industries and has developed into an innovative, entrepreneurial technology hub benefiting from a tax-exempt environment.

CEC has stripped away the red-tape and financial constraints normally associated with setting up an offshore Cayman company with a physical presence. CEC enables international companies to easily and cost-effectively set up offices with staff on the ground and have a genuine offshore physical presence and generate active business income in the Cayman Islands.

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Economy

Visualizing Layoffs at Prominent Startups Triggered by COVID-19

As unemployment levels rise, we navigate the fallout of COVID-19 as layoffs ripple across the once-thriving startup ecosystem.

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Layoffs at Prominent Startups Triggered by COVID-19

As the pandemic reverberates through almost every industry imaginable, tech startups are also feeling the pain.

Since mid-March, countless startups and unicorns have undergone layoffs.

Today’s infographic pulls data from Layoffs.fyi, and navigates the cascading layoffs across 30 of the most recognizable startups in America. Each of the companies have slashed over 250 employees between March 11 and May 26, 2020—capturing a snapshot of the continuing fallout of COVID-19.

Silicon Valley Takes a Hit

Unsurprisingly, many of the hardest hit startups are related to the travel and mobility industry.

Closing 45 offices, Uber has laid off 6,700 employees since mid-March. Uber CEO Dara Khosrowshahi, who was granted a $45M earnings package in 2018, announced he will also waive his $1M base salary for the remainder of the year.

Company# Layoffs% of EmployeesIndustry
Uber6,70025%Transportation
Lyft98217%Transportation
Bird40630%Transportation
Airbnb1,90025%Travel
TripAdvisor90025%Travel
Sonder40033%Travel
TripActions30025%Travel
Magic Leap1,00050%Consumer
Yelp1,00017%Consumer
Juul90030%Consumer
Groupon2,80044%Retail
Deliv669100%Retail
B8ta25050%Retail
Toast1,30050%Food
ezCater40044%Food
Flywheel Sports78498%Fitness
MindBody70035%Fitness
Opendoor60035%Real Estate
WeWork550N/AReal Estate
Compass37515%Real Estate
ZipRecruiter40039%Recruiting
Glassdoor30030%Recruiting
Cvent40010%Marketing
Sojern30050%Marketing
KeepTruckin34918%Logistics
Samsara30018%Logistics
Eventbrite50045%Entertainment
Lending Club46030%Finance
Sage Therapeutics34053%Healthcare
Automation Anywhere26010%Other

*Layoffs reported between March 11-May 26, 2020

Meanwhile, as room bookings dropped by over 40% across several countries, Airbnb laid off a quarter of its workforce. The tech darling is anticipating a $2.4B revenue shortfall in 2020.

Like many other big names—including Lyft, Uber, and WeWork—Airbnb is struggling to achieve profitability. In the first nine months of 2019, it lost $322M at the height of the market cycle.

Until 2021, gig-economy revenues are projected to drop by at least 30%.

International Startups Struggling

Startups in the U.S. aren’t the only ones scrambling to conserve cash and cut costs.

Brazil-based unicorn Stone has let go of 20% of its workforce. The rapidly growing digital payments company includes Warren Buffett as a major stakeholder, holding an 8% share as of March 2020.

At the same time, India-based ride-hailing Ola has witnessed revenue declines of 95% since mid-March. It laid off 1,400 employees as bookings drastically declined.

Company# Layoffs% of EmployeesLocation
Swiggy1,10014%India
Agoda1,50025%Singapore
Ola1,40035%India
Stone1,30020%Brazil
CureFit80016%India
Uber India60023%India
Careem53631%U.A.E.
Zomato52013%India
Lendingkart50050%India
Gympass46733%Brazil
OneWeb45185%United Kingdom
Livspace45015%India
Oriente40020%Hong Kong
Renmoney39150%Nigeria
Deliveroo36715%United Kingdom

Similarly, Uber India has rivaled Ola in dominance across India’s $10B ride-hailing market since launching three years after Ola, in 2013. Now, almost 25% of the Uber India workforce have been laid off.

Of course, these reports do not fully take into account the growing impact of COVID-19, but help paint a picture as the cracks emerge.

Pandemic-Proof?

While the job market remains murky, what startups are looking to hire?

Coursera, an online education startup, listed 60 openings in May. By the end of the year, the company plans to hire 250 additional staff. Within the peak of widespread global lockdowns, the platform attracted 10M new users.

Meanwhile, Canva, an Australia-based graphic design unicorn, is seeking to fill 100 positions worldwide. In partnership with Google for Education, Canva offers project-based learning tools designed for classrooms, in addition to free graphic design resources.

At the same time, tech heavyweights Facebook and Amazon reported openings. Booming startups such as Plaid, Zoom, and Pinterest are also listing new positions as shifting consumer demand continues to shape unpredictable and historic hiring markets.

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Entrepreneurship

Navigating Uncertainty: Leadership Accountability in Times of Crisis

This infographic explores five key behaviors that CEOs and executives should adopt in order to demonstrate leadership accountability in times of crisis.

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In the face of adversity, leaders may struggle to manage their teams effectively.

Before the COVID-19 outbreak, over half of all professionals globally worked remotely at least 2.5 days a week. This has since increased dramatically, with 88% of organizations now insisting their employees work from home and implement social distancing.

Leaders must adapt to a more flexible workplace and create a culture of accountability so that their organization can successfully weather the COVID-19 storm.

Leadership Accountability in Uncertain Times

Today’s infographic, from bestselling author Vince Molinaro, reveals the five behaviors that leaders can adopt in order to provide thoughtful navigation through uncertainty.

leadership accountability in times of crisis

>> Join Vince Molinaro’s Community of Accountable Leaders

The Impact of Leadership Accountability

As the workforce pivots to remote working arrangements, the benefits of flexible working policies are coming into sharper focus.

Research shows that these policies can lower overhead costs, reduce commuting times and increase employee satisfaction—in addition to attracting top talent. Moreover, the shift to working remotely could boost the U.S. economy by $4.5 trillion annually by 2030.

But achieving these benefits requires accountability from everyone in an organization, and in an increasingly virtual world, that can become difficult to manage.

Challenges Facing Leaders Today

Leaders are already subject to an array of challenges that they must overcome, such as:

  • The pressure to differentiate: Leaders feel an unrelenting pressure to innovate and help their organizations stand out in a sea of ruthless competitors.
  • Executing the strategy: Leaders must align the organization to ensure employees are clear about what needs to get done to execute priorities seamlessly.
  • Leading transformational change: With so many moving parts, constant change across several aspects of a business can be difficult for leaders to manage.
  • Creating enduring value: Customers, boards, and shareholders have high expectations for leaders in exchange for their loyalty.
  • Building future talent: Leaders must build and nurture the next generation of leaders in addition to managing the day-to-day.

These mounting pressures can have a detrimental impact on a business leader’s performance, so it is crucial that they get the support they need now, more than ever.

The Characteristics of Accountable Leaders

Truly accountable leadership is the only way an organization can weather uncertainty in a world that has been upended. Research reveals that among the strongest performing companies, accountable leaders consistently demonstrate five behaviors that set them apart from others.

  1. Hold others accountable for high standards of performance
    Good leaders make mutual expectations clear by consistently reinforcing what is important, and what employees should prioritize in their roles.
  2. Tackle tough issues and make difficult decisions
    Technology is hugely beneficial, but it should never replace the human element. Picking up the phone or having a Skype call is more immediate and personal, especially when it comes to problem solving and making tough decisions.
  3. Communicate the strategy across the organization
    Leaders must ensure that employees have complete clarity in terms of the company’s vision to do their jobs effectively. Creating a set of well-defined goals can help people stay engaged and decrease their stress levels.
  4. Express optimism about the company and its future
    Many employees can feel isolated and disconnected in the virtual world, so leaders must provide support, positive energy, and a sense of hope for the future.
  5. Display clarity about external trends in the business environment
    Finally, it is critical to help employees make sense of the current situation right now. Leaders must provide honest and transparent communication in a way that manages fear, stress, and anxiety. This encourages employees’s determination to help the organization succeed.

Leading The Future

As we embrace the unknown, it is clear that leadership accountability will become more important than ever.

In fact, it has become a crucial element for future-proofing organizations in times of crisis or drastic change. Perhaps more importantly, it is necessary for encouraging teams to emerge more connected and resilient than ever before.

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