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] | BVI [VG] | |
|---|---|---|
| Region | Offshore | Offshore |
| Corporate tax rate | 0% | 0% |
| FATF status | compliant | grey list |
| Sanctions exposure | No | No |
| Data-protection law | DPL 2017 (rev. 2021) | None |
| New York Convention | No | Yes |
| Apostille Convention (1961) | Yes | Yes |
| Foreign ownership | Yes | Yes |
| Local director requirement | No | No |
Cayman Islands is FATF-compliant and not on the grey list, which generally means smoother bank onboarding.
BVI is on the FATF grey list (increased monitoring). Expect slower bank onboarding and more KYC questions for the company and its counterparties — not a prohibition on doing business.
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 None. If you process EU/UK personal data you also need a valid transfer mechanism into BVI.
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.
BVI 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