Corporate Law at Cayman Islands (BOT)
Corporate Law in the Cayman Islands (British Overseas Territory - BOT)
The Cayman Islands is one of the world's leading offshore financial centers, particularly attractive for corporate structuring, hedge funds, private equity, and international business companies. Here's a concise overview of Corporate Law in the Cayman Islands:
1. Legal Framework
Based on English common law, supplemented by local statutes.
Corporate law primarily governed by the Companies Act (2023 Revision).
Regulated by the Cayman Islands Monetary Authority (CIMA) for financial services.
2. Types of Companies
The most common corporate structures include:
Exempted Companies: Designed for offshore business; cannot trade locally.
Ordinary Resident Companies: Can conduct business within the Cayman Islands.
Segregated Portfolio Companies (SPCs): Used mainly in the insurance and fund industries.
Limited Liability Companies (LLCs): Introduced in 2016, combining corporate and partnership features.
3. Key Features of Cayman Companies
No corporate or capital gains tax.
No requirement for minimum capital.
Shareholders and directors can be non-residents.
Privacy: Details of shareholders are not publicly available (for exempted companies).
Efficient incorporation: Companies can be incorporated within 24–48 hours.
4. Corporate Governance
Directors: Only one required; can be an individual or a company.
Shareholders: Minimum of one.
Annual General Meetings: Not mandatory unless specified in the articles.
Registered Office: Must be maintained in the Cayman Islands.
5. Regulatory Compliance
Economic Substance Requirements: Applicable to certain business activities (e.g., finance, shipping, IP).
Anti-Money Laundering (AML) and Know Your Customer (KYC) compliance is mandatory.
Beneficial Ownership Register: Maintained but not publicly accessible.
6. Uses of Cayman Companies
Investment Funds (hedge funds, private equity)
Joint ventures
Holding companies
IPO vehicles
Asset protection structures
7. Dispute Resolution
Handled by the Grand Court of the Cayman Islands, with a specialized Financial Services Division.
Final appeal lies with the Judicial Committee of the Privy Council in the UK.
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