Cook Islands Offshore Company
The Cook Islands' Limited Liability Company Act was enacted in 2008 to enhance its offerings in the offshore sector. Following the model adopted in several US states, a Cook Islands LLC is a flexible entity that allows you to form your own structure according to your operating agreement, rather than being dictated by rigid legal mandates.
A Cook Islands LLC is a hybrid between a partnership and a corporate structure, protecting LLC members from debts incurred by the entity and separating the rights of its members from those of the LLC.
In addition to the aforementioned structural flexibility, Cook Islands LLCs benefit from confidentiality, no reporting requirements, and tax exemption.
Starting a Company in the Cook Islands: Taxes and Costs
The Cook Islands is an offshore financial destination distinguished by its asset protection laws, guaranteeing the assets of foreign investors in the Cook Islands.
A creditor cannot issue a charging order or interfere with the operations of an LLC or seize, liquidate, or force the dissolution of the company. Any member of a Cook Islands LLC with a charging order may still act and exercise their rights as a member. Any order resulting from a judgment in another location outside the Cook Islands will not be enforced or recognized in the Cook Islands courts.
The country has implemented the OECD Automatic Exchange of Information (AEoI).
All in all, the Cook Islands LLC used in combination with a Cook Islands International Trust, could be one of the best asset protection tools available anywhere in the world.
Taxes
Corporate Income Tax: A Cook Islands LLC is a tax-transparent entity, meaning any profits and losses are passed through to the members to be reported as personal income. There are no taxes, exchange controls, or fees on assets or income earned outside the Cook Islands.
Other taxes: In the Cook Islands, there is no capital gains tax, inheritance tax, wealth tax, capital transfer tax, gift tax, or wealth tax. The main tax on resident individuals is an income tax with a maximum rate of 30% on income over NZD 24,000.
There is a VAT of 12.5% and a stamp duty on some official transactions. Import duties range from 0% to 150%, with an effective average rate of just over 10% on the CIF value of all imported goods.
Legal Basis
Country code: CK
Legal basis: Common Law
Legal framework: Limited Liability Companies Act 2008
Corporate form: Limited Liability Company (LLC)
Liability: Members' liability is limited to the amount of their capital contributions.
Capital: There is no requirement to register a minimum or maximum capital contribution and there are no restrictions on contributions after incorporation.
Members: A Cook Islands LLC can be formed by one or more members, who can be individuals or legal entities, residents or non-residents, without limitation. There is no public LLC registry. The identities of registered LLC members are not publicly available.
Managers: Members of an LLC may act as managers or, alternatively, appoint a manager. Corporate officers are permitted. Details are not publicly available.
Registered Address: LLCs require a Cook Islands trust company to be appointed as their registered agent.
General Assembly: There is no legal requirement for formal meetings of members.
Electronic signature: Allowed.
Re-domicile: LLCs may transfer their domicile from the Cook Islands to another jurisdiction, and LLCs from other jurisdictions may apply to register in the Cook Islands under the legislation.
Compliance: An LLC is required to maintain sufficient accounting records to show the location of the LLC's transactions with reasonable accuracy; these records must be maintained by the resident agent in the Cook Islands.
There is no obligation to file annual accounts, appoint auditors, or disclose information to any Cook Islands authority. The only information provided is through an annual report with the Registrar, providing the name of the LLC and the address of the registered agent.
In addition to opening your own Cook Islands offshore company, you will probably be interested in creating a life insurance policy on your tax situation by taking up a second tax residence in a country with territorial taxation, such as a residence in Panama.
Also consider a company in Panama
