Side-by-side on the points that decide where you incorporate: corporate tax, FATF standing, sanctions exposure, data-protection law, arbitration enforceability, apostille, foreign ownership and local-director requirements.
Last reviewed: 2026-08-03
| Cayman Islands [KY] | United States [US] | |
|---|---|---|
| Region | Offshore | North America |
| Corporate tax rate | 0% | 21% |
| FATF status | compliant | compliant |
| Sanctions exposure | No | No |
| Data-protection law | DPL 2017 (rev. 2021) | Sectoral (CCPA, HIPAA, etc.) |
| New York Convention | No | Yes |
| Apostille Convention (1961) | Yes | Yes |
| Foreign ownership | Yes | Yes |
| Local director requirement | No | No |
The headline corporate income tax rate in Cayman Islands is 0%. Free zones, small-business reliefs and participation exemptions can change the effective rate — treat this as the starting point.
The headline corporate income tax rate in United States is 21%. Free zones, small-business reliefs and participation exemptions can change the effective rate — treat this as the starting point.
The applicable data-protection statute is DPL 2017 (rev. 2021) (in force since 2017). If you process EU/UK personal data you also need a valid transfer mechanism into Cayman Islands.
The applicable data-protection statute is Sectoral (CCPA, HIPAA, etc.) (in force since 2020). If you process EU/UK personal data you also need a valid transfer mechanism into United States.
Cayman Islands is NOT a party to the 1958 New York Convention — enforcing a foreign arbitral award here is materially harder. Factor this into any dispute-resolution clause.
United States is a party to the 1958 New York Convention, so a foreign arbitral award can generally be enforced by local courts — the single most important box to tick before agreeing to arbitration with a counterparty here.
Neither is obviously right until you know what you are optimising for — tax, banking, enforcement or speed.
Informational resource curated by the Ignito legal practice and cross-checked against primary sources. This is not legal advice and does not create a lawyer-client relationship. Rules change — verify against the primary source before you sign or file. Terms of Use