Jurisdictions / KY
Cayman Islands
The world's leading domicile for investment funds and alternative investment structures.
The Cayman Islands is a British Overseas Territory and the world's leading domicile for investment funds, with over 17,000 private funds and nearly 13,000 regulated open-ended funds registered with the Cayman Islands Monetary Authority (CIMA). The jurisdiction offers a range of vehicles including exempted companies, Segregated Portfolio Companies (SPCs), exempted limited partnerships (ELPs) and limited liability companies (LLCs). In October 2023, the FATF removed the Cayman Islands from its grey list, and in February 2024, the EU delisted the jurisdiction from its high-risk third-country list.
At a glance
- Regulator
- Cayman Islands Monetary Authority (CIMA)
- Key legislation
- Companies Act, Private Funds Act 2020
- Tax regime
- Tax-neutral; exemption undertakings 20-50 years
- FATF / EU
- Removed from grey list October 2023 / EU delisted February 2024
- Fund types
- Private, Registered, Administered, Licensed
Available structures
Key advantages
Tax neutrality
No income, capital gains or withholding tax; tax exemption undertakings available for 20-50 years.
World-leading fund domicile
Deep infrastructure of administrators, custodians, auditors and legal counsel.
CIMA regulation
Well-respected regulatory framework aligned with international standards.
FATF / EU delisted
Removed from FATF grey list (October 2023) and EU high-risk list (February 2024).
Legal certainty
English common law judicial system with established precedent on corporate and fund matters.
Investor confidence
Globally recognised brand providing credibility with institutional investors and allocators.
Process
Scoping
Exempted company, ELP, LLC or SPC based on fund strategy and investor base.
Entity selection
Vehicle type, share classes or membership interests, governance.
Documentation
KYC, constitutional documents, fund offering documents (if applicable), BO declarations.
Partner coordination
Engagement with Cayman-licensed law firm and registered office provider.
Incorporation
CIMA registration (for funds), Companies Registry filing.
Ongoing compliance
Annual fees, CIMA returns, BO register maintenance, audit (for regulated funds).
Regulatory context
- Regulator
- Cayman Islands Monetary Authority (CIMA)
- Key legislation
- Companies Act, Private Funds Act 2020, Mutual Funds Act (revised), Securities Investment Business Act (SIBA), Beneficial Ownership Transparency Act 2023
- AML / CFT
- Cayman follows FATF recommendations; CIMA conducts inspections and enforcement
- Economic substance
- Economic Substance Act 2019; investment funds excluded but related holding/management companies may be subject
- BO reporting
- Beneficial Ownership Transparency Act 2023 (full application from January 2025); register maintained, legitimate interest access from February 2025
- FATF / EU status
- Removed from FATF grey list (October 2023), removed from EU high-risk list (February 2024)
Related services
Common questions
Services delivered through licensed partner firms
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