Description
What’s Included?
- Registered and operational company
- Complete application process handled on your behalf
- Due diligence checks conducted as part of the service
- Drafting of country-compliant company documents such as the operating agreement
- Coverage of all third-party costs, including first-year registration fees with the appropriate government body
- Application guide outlining each step of the application process.
The Cook Islands Limited Liability Company (LLC) is a versatile offshore company structure designed for global businesses and individuals seeking robust asset protection. Established in 2008 and modeled after the successful frameworks of Nevis and the U.S., the Cook Islands LLC offers modern flexibility and robust asset protection, the legislation blends limited partnership and corporate features, safeguarding members through strict separation.
Key Benefits
- Flexible Management Structure: Legislation allows single-member LLCs that can be managed by the member themselves or by appointed managers.
- Strong Anti-Creditor Legislation:
- Limited Creditor Remedies: The sole remedy available to creditors is a non-renewable five-year charging order on the LLC membership interest. For example, if a court rules in favor of a creditor, they can only obtain a charging order on your LLC interest for five years, during which they cannot force distributions, interfere with management decisions, or liquidate the LLC. Once the charging order expires, the creditor loses any claim against your LLC interest.
- Local Enforcement Only: Foreign judgments are not enforceable in the Cook Islands, requiring creditors to bring their case before the Cook Islands High Court.
- Confidentiality and Privacy: There is no Beneficial Ownership register. The identities of managers, members, and beneficial owners are confidential, not retained in any centralized register, and cannot be divulged without reasonable excuse.
- Asset Protection: Benefit from the Cook Islands’ stringent asset protection and privacy laws. Shield your assets from legal claims, creditors, and judgments.
- Tax Efficiency: Enjoy tax exemption on income generated outside the Cook Islands. The LLC operates as a pass-through entity, with earnings taxed based on individual residency.
- Legal Stability: Operate within a stable legal and regulatory environment.
- International Recognition: Benefit from global respect and recognition, facilitating international business activities.
- Minimal Reporting Requirements: Experience reduced administrative burdens with minimal reporting and record-keeping requirements.
- Strategic Remote Location: Ensure continuity and security in times of political or global turmoil.
- Unique Uses: Can be used in conjunction with yacht registration in the Cook Islands.
About the Cook Islands: Located in the South Pacific, the Cook Islands are renowned for their secure and stable offshore financial environment, making them a preferred jurisdiction for safeguarding wealth.
The Structure:
- Member(s): Cook Islands LLCs can have one or more members, including individuals, companies, or trusts. Members hold ownership interests, which can be based on percentage ownership. Single-member LLCs are allowed and can be managed by the member or appointed managers.
- Manager(s): The LLC can be managed by one or more managers, who may or may not be members. Managers handle decision-making and ensure smooth company operations.
- It is common for the person establishing the LLC to appoint themselves as the sole Member (100% ownership) and Manager
- Operating Agreement: The LLC operates based on an operating agreement outlining the rights, responsibilities, and duties of members and managers. This is included in your incorporation fee
- Registered Agent: A registered agent in the Cook Islands is required and included in your incorporation fee.
Establishing a Cook Islands LLC through OCO’s efficient onboarding process can see your LLC operational in just 2-5 days. This setup offers a reliable solution for those seeking asset protection, tax efficiency, and confidentiality within a reputable offshore jurisdiction.
View the full governing legislation here: Cook Islands Finance – Legislation
Where are the Cook Islands?
The Cook Islands are located in the South Pacific Ocean, northeast of New Zealand, and approximately 3,000 miles southwest of Hawaii. They share the same time zone as Hawaii, making coordination convenient for clients in the U.S. Pacific region.
Why should I use Offshore Companies Online for my company formation?
Offshore Companies Online streamlines the process by managing the entire application for you, conducting due diligence checks, and preparing compliant company documents. We cover all third-party costs, including first-year registration fees, ensuring a smooth and stress-free experience. Additionally, we provide an application guide to assist you every step of the way. Our all-inclusive “pay-when-completed” model guarantees transparency and peace of mind.
Do I need to visit the Cook Islands to open my LLC?
No, you do not need to visit the Cook Islands to open your LLC. The entire process can be completed remotely, saving you time and travel expenses.
What if a creditor wins their claim?
If a creditor were to win their claim, the sole remedy available is a non-renewable five-year charging order over your membership interest. This means that if a distribution occurs, the creditor would be entitled to a share. However, since the charging order is non-renewable, you can refrain from making distributions for the five-year period. Additionally, the creditor must retain a Cook Islands attorney and bring the case to the Cook Islands High Court for any action to be enforced, providing significant protection for your assets.
What documents are required to set up a Cook Islands LLC?
To set up a Cook Islands LLC, you will need to provide identification documents such as a passport, proof of address, and any additional information required for due diligence checks.
Are there any restrictions on the types of business activities a Cook Islands LLC can engage in?
A Cook Islands LLC can engage in a wide range of business activities. However, it cannot conduct business activities within the Cook Islands itself if it wishes to maintain tax-exempt status.
How does taxation work for a Cook Islands LLC?
A Cook Islands LLC is exempt from local taxes on income generated outside of the Cook Islands. It operates as a passthrough entity, with earnings taxed based on the individual residency of the members.
Can I open a bank account for my Cook Islands LLC?
Yes, you can open a bank account for your Cook Islands LLC. It is often recommended to open a bank account in conjunction with establishing the LLC for comprehensive financial management.
Is my information secure with a Cook Islands LLC?
Yes, your information is highly secure. The Cook Islands have strong confidentiality laws, and there is no public register of beneficial owners, managers, or members, ensuring your privacy.
What is the role of a registered agent for a Cook Islands LLC?
A registered agent is required for a Cook Islands LLC and acts as the company’s official point of contact within the jurisdiction. The agent handles compliance and regulatory correspondence on behalf of the LLC. This service is included in your incorporation fee.
