The Cayman Islands offers 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 are regulated by the Companies Act (2023), LLC Act (2023), Foundation Companies Act 2017 and Exempted Limited Partnership Act (2021). English common law, case law, high flexibility of structure.
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 entity a 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: has legal personality, can own assets, but is managed as a trust. Ideal for DAOs, family offices, charities and orphan structures.
For DAO/familyMain fund structure: General Partner + Limited Partners. Regulated by the ELP Act (2021). Uses ⅔ of all hedge funds and private equity in the world. Transparency for tax purposes.
PE/VC/HedgeLifespan up to 30 years, after that - automatic winding up. Used as a US LLC before changes to the US tax code. Today - for projects with a fixed deadline.
Urgent projectsResidents of Cayman Enterprise City - for tech, biotech, media, marine and commodities companies. 5-year guaranteed multi-visa, fast-track licenses, physical office in SEZ.
Tech startupsFor business directly on the islands: 60% ownership by residents of the Cayman Islands or Local Companies (Control) License. Real office, AGM, annual list of shareholders.
Local businessTransfer of a foreign company to the Cayman Islands without loss of legal entity. faces. Continuation procedure under the Companies Act. History, contracts, assets are preserved. Duration: 3–5 weeks.
Moving entityThe actual period depends on the completeness of KYC documents and the availability of Politically Exposed Persons. In 70% of cases we deliver within 5 working days.
Passports, address proof, references, SoW according to the FATF standard.
Check in the Companies Registry, approval of sensitive words.
Individual charter for ownership structure and objectives.
Declaration of doing business outside the Cayman Islands.
Submission via CAP-portal. Express - 24 hours for +$988.
Application to the Cabinet Office is a 20-year tax-zero guarantee.
Beneficial Ownership register and annual ES notification.
Segregated Portfolio Company is the main advantage of the Caymans for multi-strategy fund managers. One legal entity shell, multiple “cells”, complete isolation of assets and liabilities between cells.
Benefits:
Disadvantages:
Application:
Foundation Company was introduced by the Foundation Companies Act 2017 as a unique hybrid: a separate legal entity. person (like a regular company) + beneficiaries and protector (like a trust). Can own assets, enter into transactions, be a plaintiff and a defendant.
By 2025, the Cayman Islands will have more than 1,700 crypto-foundation companies - mainly as a legal wrapper for DAOs (decentralized autonomous organizations). This made Cayman the de facto standard for DAOs.
Protection of DAO members from personal liability, the ability to own assets, 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 own PTC (Private Trust Company) shares so that the PTC shares are not part of the founder's estate.
The Foundation issues a token on behalf of the project, attracts investments, holds treasury and distributes gas through governance.
Registration is just the beginning. Next you need to maintain a good standing, pass the ES-test, submit BO updates and FATCA/CRS reports. We do everything on a turnkey basis.
Address in Cricket Square, George Town. Reception of correspondence from General Registry, CIMA, AIMS. Scan and forward within 24 hours.
Licensed Service Provider (CISP). Mandatory for all Cayman entities. Responsible for compliance with regulatory requirements.
Beneficial Ownership is a register under the Beneficial Ownership Transparency Act 2023. Not public, but available to regulators. Update within 30 days.
Annual Economic Substance notification in January. For CIGA-relevant activities - full ES Test (CIGA, Adequate Substance).
Registration with DITC, annual reporting for financial institutions. From 2026 - Crypto-Asset Reporting Framework (CARF).
Submission to the Companies Registry in January + payment of annual fees. Maintaining good standing status.
The lawyer partner will study the problem and suggest the optimal form or combination of forms. Free consultation, NDA prior to meeting upon request.