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Economic Substance – Cayman Islands David Charles Lloyd The Cayman Islands have made a commitment to address the concerns of the EU Code of Conduct Group around economic substance and to introduce appropriate legislation addressing this issue before the end of 2018. What will the legislation look like? Whilst the Cayman Islands draft legislation is in an advanced state to implement new economic substance requirements and reporting and have been in close discussions with the EU working group, it is not yet publicly available.  We do understand that the legislation will follow the approach which has been taken jointly by the Crown Dependencies of Jersey, Guernsey and the Isle of Man. The proposals will require companies tax resident in the Cayman Islands, and undertaking certain categories of geographically mobile financial and other service activities, to demonstrate that they have sufficient substance in the Cayman Islands. The substance requirements a...
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The Cayman Exempted Limited Company  by David Charles Lloyd An exempted company is the most commonly used type of Cayman Islands company for international transactions. Often used for private wealth, cross-border transactions in structured finance, securitisations, asset backed finance and secured leasing (including aircraft and ship finance), capital markets private placements, project finance, infrastructure finance, operating companies, holding companies and investment funds.  Nature of business permitted The objects of a Company will be set forth in the Memorandum. In a majority of cases, the objects clause will be worded very broadly using a formulation such as, "the objects for which the Company is established are unrestricted and the Company shall have full power and authority to carry out any object not prohibited by any law". A Company may not trade in the Cayman Islands with any person, firm or corporation except in furtherance of the business...
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