The Cayman Islands limited liability company
is a type of legal entity that allows investors to benefit from the protection awarded by only being limited up to the amount of invested capital.
In order to open an LLC in the Cayman Islands
, investors will need to follow a few steps. They will still benefit from the tax-exempt regime in the Islands and several of the other advantages available when setting up a Cayman Islands company
The characteristics of the LLC in the Cayman Islands
There are several types of business entities
that can be incorporated in the Cayman Islands, among which the two most popular are the exempted company and the non-resident company. The LLC
is also a business form that has won the attention of foreign investors because of its characteristics that allow, as the name suggests, for liability only up to a certain invested amount.
This business form was introduced rather recently, through the Limited Liability Companies Law of 2016. The LLC is a business entity that has legal capacity and whose members have limited liability, at the same time being a type of structure that allows for a great deal of flexibility. It can be used for the creation of investment funds, joint-venture companies or other structures.
The LLC does not require a minimum capital, its members are not made public and it is not subject to taxation.
LLC incorporation in the Cayman Islands
Choose a company name: this is the first step and the company’s name should contain the abbreviation of the business form.
Establish a registered office: this is an address in the Cayman Islands where the company will be based and where all of the notices will be sent.
Draft the company’s documents: these will contain information as per the duration of the company, a declaration of the business that will be undertaken by the LLC (which must not contravene with the Cayman Islands permissions).
Application for registration: the LLC will receive its Registration Certificate from the Register within three to five days after the application was submitted.