The Cayman Islands offer one of the most flexible corporate systems in the world. There is an optimal form for each scenario: from the classic Exempted Company to segregated portfolio companies (SPC) for funds.
All forms of companies in the Cayman Islands are regulated by the Companies Act (2025 Revision), Limited Liability Companies Act (2025 Revision), Foundation Companies Act (2025 Revision) and Exempted Limited Partnership Act (2025 Revision). The legal system is based on English common law and case-law precedent, which ensures high flexibility of corporate structures and governance mechanisms.
The most common form. Business is conducted outside the Cayman Islands. Tax Exemption Undertaking — 20 years (extendable to 30). One shareholder, one director, no residency requirements.
Often chosenA hybrid of a company and a partnership, analogous to a Delaware LLC. Tax Exemption — up to 50 years. Members instead of shareholders, no share capital, flexible operating agreement, no AGM.
For funds & JVOne legal shell with several “segregated portfolios” (cells). The assets and liabilities of each portfolio are isolated. Ideal for multi-strategy fund structures.
For multi-strategyA hybrid of a trust and a legal entity: it has legal personality, can own assets, but is managed as a trust. Ideal for DAO, family offices, charity and orphan structures.
For DAO / familyThe main fund structure: General Partner + Limited Partners. Regulated by the ELP Act (2021). Used by ⅔ of all hedge funds and private equity in the world. Transparency for tax purposes.
PE / VC / HedgeLifespan up to 30 years, after which — automatic winding up. Used as a US LLC before changes to the US tax code. Today — for projects with a fixed term.
Urgent projectsResidents of Cayman Enterprise City — for tech, biotech, media, marine and commodities companies. 5-year guaranteed multi-visa, fast-track licences, physical office in the SEZ.
Tech startupsFor business directly on the islands: 60% ownership by Cayman Islands residents or a Local Companies (Control) Licence. Real office, AGM, annual list of shareholders.
Local businessAn association of two or more partners running a business together, where each partner's liability is limited to their contribution and personal assets stay protected. The partnership itself pays no tax — income is passed through to the partners. Convenient for joint ventures, investment funds and professional associations.
More detailsA company that operates mainly outside the Cayman Islands and certifies its non-resident status. It may not earn income within the islands but enjoys a simplified regime for working abroad. Suited to holding foreign assets and international trade.
More detailsA form in which members are liable for the company's debts without limit — down to their personal assets. In return for the higher risk, it offers greater freedom in handling capital and returning it to members. Chosen where flexibility and trust matter and the chance of debt is low.
More detailsAn organisation set up for public, charitable or other non-commercial purposes rather than members' profit. All surplus goes toward its statutory objectives and is not distributed among members. Suited to foundations, charitable and community initiatives.
More detailsThe actual term depends on the completeness of KYC documents and the presence of Politically Exposed Persons. In 70% of cases we manage within 5 working days.
Passports, address proof, references, SoW to the FATF standard.
Check in the Companies Registry, approval of sensitive words.
Bespoke charter tailored to the ownership structure and objectives.
Declaration of conducting business outside the Cayman Islands.
Submission via the CAP portal. Express — 24 hours for +$988.
Application to the Cabinet Office — a 20-year guarantee of zero tax.
Beneficial Ownership register and annual ES notification.
Segregated Portfolio Company is the main advantage of the Caymans for multi-strategy fund managers. One legal shell, several “cells”, complete isolation of assets and liabilities between cells.
Advantages:
Disadvantages:
The Foundation Company was introduced by the Foundation Companies Act 2017 as a unique hybrid: a separate legal entity (like an ordinary company) + beneficiaries and a protector (like a trust). It can own assets, enter into transactions, and be a plaintiff and a defendant.
By 2025, more than 1,700 crypto foundation companies have been registered in the Cayman Islands — mainly as a legal wrapper for DAOs (decentralised autonomous organisations). This has made the Caymans the de facto standard for DAOs.
Protection of DAO members from personal liability, the ability to own assets and enter into contracts on behalf of the DAO.
Can exist without beneficiaries (purpose foundation). Ideal for funding scientific, charitable or educational purposes.
Using a Foundation Company to hold the shares of a PTC (Private Trust Company) so that the PTC shares do not form part of the founder's estate.
The Foundation issues a token on behalf of the project, raises investment, holds the treasury and distributes gas through governance.
Registration is only the beginning. Next you need to maintain good standing, pass the ES test, submit BO updates and FATCA/CRS reports. We do everything on a turnkey basis.
Address at Cricket Square, George Town. Receipt of correspondence from the General Registry, CIMA, AIMS. Scanning and forwarding within 24 hours.
Licensed service provider (CISP). Mandatory for all Cayman entities. Responsible for compliance with regulatory requirements.
Beneficial Ownership register under the Beneficial Ownership Transparency Act 2023. Not public, but accessible to regulators. Updated within 30 days.
Annual Economic Substance notification in January. For CIGA-relevant activities — a full ES Test (CIGA, Adequate Substance).
Registration with the DITC, annual reporting for financial institutions. From 2026 — the Crypto-Asset Reporting Framework (CARF).
Submission to the Companies Registry in January + payment of annual fees. Maintaining good standing status.
A partner lawyer will study the task and propose the optimal form or combination of forms. Free consultation, NDA before the meeting on request.