Under the Cayman Companies Law, there are different types of companies in the Cayman Islands, some types of companies are incorporated for conducting business the Cayman Islands, while other are formed for the purpose of conducting business outside the Cayman Islands.

1.       Resident Company

The resident company is allowed to carry on business within the Cayman Islands, and must appointed at least one shareholder and one director. It also must be held an annual general meeting, and file of an annual return report to Registrar of Companies in every year. The register of members is maintained at the registered office and is open for public inspection.

2.       Non-Resident Company

The company can be granted non-resident status through submitting the application to the Minister of Finance through the Registrar of Companies and must declared the company will not carry business in the Cayman Islands. The ordinary non-resident company could be converted to an exempted company or an ordinary resident company.

The company must maintain the registers of members at the registered office, also must file the names and addresses of members, directors and the amount of paid-up capital to the Registrar in every year.

3.       Exempt Company

The exempted company is the most commonly used business form by foreign investors, as it may obtain a certificate of tax exemption, to against the imposition of any future taxation, that is usually given for 20 years in the first instance and is renewable, which can benefit from the business mainly in activities outside of the Cayman Islands.

The company must have at least one voting shareholder and at least one director, also requires file an annual return to the Registrar. But the register of members does not be open for public inspection, and not required to hold an annual general meeting.
 

(1)     Limited Duration Company

Another form of the exempt company is the limited duration company (LDC), that must at all times have no less than two shareholders, also the articles of association must limit the life of the must limit the duration of the company to less than 30 years, it must certain events are specified which automatically precipitate its voluntary winding-up and dissolution.

The articles of association of LDC may provide that the transfer of any share or other interest of a member of the company requires the unanimous resolution of all shareholders. The articles of association may provide that the management of the company is vested in the members, or to delegate the management to a board of directors.

(2)      Segregated Portfolio Company

The segregated portfolio company (SPC) is also a form of exempted company. An exempted company can be converted by way of continuation, and a limited duration company to re-register as a segregated portfolio company.

Besides the annual return required for an exempted company, the SPC is required to file a return to declare all change on its portfolio during the year.

(3)      Special Economic Zone Company

It is permitted to re-register an existing exempt company as special economic zone company. The company is authorized to carry on business in a special economic zone in the Cayman Islands. The articles of association of company is required to declare the intention of carrying on business special economic zone.

See also: Cayman Islands Company Registration Procedures and Fees

4.       Overseas Company

An overseas company is also referred as a foreign company, which has been incorporated in another jurisdiction and intends to carry on business at its business address of the Cayman Islands.

The overseas company shall apply the registration of foreign company at the Registrar within 1 month since the date of business commencement or land holding.

The company have to file with the registrar within 30 days, if there is any particular or information of the overseas company alternated. 

5.       Limited Liability Company

The limited liability company (LLC) has separate legal identity, the members able not be held personally liable for the debts or liabilities of company. The existing Cayman Islands exempted company permitted to merge, consolidate, or convert to LLC.

The formation of LLC is required filing of a signed registration statement containing certain prescribed information and payment of the registration fee. If have change occurs in any matter in registration statement, the company must file a certificate of amendment.

The company must be filing an annual return and pay to a prescribed annual fee to the Registrar in January of each year.

6.        Unlimited Company

The unlimited company is incorporated with or without capital, but where the liability of all its shareholders is not limited. The articles of company must state the number of members, and the amount of share capital if the company proposes to be registered.

7.        Foundation Company

The foundation company is a separate legal entity, which may be formed by founder for any lawful objects. Its constitutive documents mainly the specific articles of association, which must declare articles, for the disposal of any surplus assets the company may have on winding-up.

The existing Cayman company may be converted to a Foundation, otherwise an entirely new Foundation could be registered. The Foundation company must be limited by shares or by guarantee with or without share capital.

8.       Associations Not for Profit

An association not for profit is proved by the Governor of Cayman Islands and formed as a limited company, it is not required to publish its name and provide a list of members to the Registrar.

The Association is formed for the purpose of promoting commerce, art, science, religion, charity, or other useful objects. Any profits or income made will be used for promoting its intention of the Association. Also, it is not allowed to pay any dividend to the members of the Association.