Corporate Law at Cook Islands
Corporate law in the Cook Islands is designed to support international business and asset protection, making it a popular jurisdiction for offshore companies and trusts. Here's a brief overview of corporate law in the Cook Islands:
Key Features of Corporate Law in the Cook Islands
1. International Companies Act 1981-82
Governs the formation and operation of International Companies (ICs).
ICs can be 100% foreign-owned.
No requirement for Cook Islands residency for directors or shareholders.
Flexible corporate structures allowed (single shareholder/director possible).
2. Asset Protection Laws
The Cook Islands is known for strong asset protection laws, especially through trusts.
The International Trusts Act 1984 offers confidentiality and security against foreign judgments.
Commonly used by high-net-worth individuals and businesses for asset protection.
3. Confidentiality
Strict privacy laws: Information about company owners, directors, and shareholders is not publicly accessible.
Registered agents maintain records, but these are not part of a public register.
4. Tax Benefits
No local corporate tax on income earned outside the Cook Islands.
No capital gains tax, inheritance tax, or withholding tax.
Designed to attract international investors and businesses.
5. Company Types
International Companies (ICs) – for offshore operations.
Limited Liability Companies (LLCs) – used for both local and international business.
Trusts and Foundations – widely used for estate planning and asset protection.
6. Regulatory Bodies
Financial Supervisory Commission (FSC): Regulates financial services and ensures compliance with anti-money laundering (AML) and counter-terrorism financing (CTF) laws.
7. Requirements for Registration
Appoint a licensed registered agent in the Cook Islands.
File articles of incorporation.
Maintain a registered office (through the agent).
Maintain proper accounting records (but not required to file publicly).
Common Uses of Cook Islands Companies
Offshore investment and trading
Intellectual property holding
Asset protection structures
Family estate planning through trusts
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