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Cayman Islands Prop Trading Firm for German founders

Setting up a prop trading firm in Cayman Islands as a German founder is a three-variable problem: the Cayman Islands entity, the prop trading firm regulatory profile, and the home-country exposure of the UBO.

Cayman Islands entity

Economic Substance Law applies to relevant activities

Prop Trading Firm considerations

Proprietary capital trading across spot, derivatives, OTC.

German UBO exposure

AStG add-back taxation, exit tax on >1% holdings, substance critical.

Talk to a partner before you incorporate.

Wrong jurisdiction, wrong substance, or wrong bank shortlist is a 12-month problem. A 30-minute briefing fixes 80% of it.

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