An Introduction and Overview of Features of the Cayman Islands Limited Liability Company
Introduction 1. The Cayman Islands Limited Liability Company (LLC) regime came into operation on 13th July 2016 following the 8th July publication of The Limited Liability Companies Law, 2016 (Commencement) Order, 2016. Also on 13th July 2016 regulations were published setting out a schedule of fees and setting out requirements for a translator’s certificate where a foreign language name is adopted. 2. The Limited Liability Companies Law 2016 (the “LLC Law” or “the Law”) which provides for this new kind of Cayman Islands vehicle was enacted on 8th June 2016. 3. An LLC is similar to a Delaware limited liability company. It is a hybrid business vehicle with separate legal personality (like a Cayman Islands exempted company), but with certain features and flexibility akin to a Cayman Islands exempted limited partnership (including, with reference to the nature of a member’s interest in an LLC, the manner in which accounts are maintained and with parties having substantial freedom of contract amongst themselves to determine the LLC’s governance and other internal workings). 4. The LLC Law also allows for existing companies to convert into LLCs, for the merger or consolidation of an LLC with an exempted company or a foreign company and permits transfers by way of continuation into or out of the Cayman Islands. Formation and Registration 5. The registration of an LLC is effected by the payment to the Register of Limited Liability Companies, maintained by the Registrar of Companies of the registration fee and by the filing with the Registrar of a registration statement signed by or on behalf of the party forming the entity which shall contain: a) The name of the limited liability company and, if applicable, its dual foreign name [...]