Where the proposed activities of a company are to be carried out mainly outside of the Cayman Islands – offshore – the registrants can apply for registration as an exempted company pursuant to PART VII of the Companies Law.
A foundation company is a separate Legal entity which may be formed by any person (the “founder”) for any lawful object, which need not be beneficial to other persons, provided it falls within the wide parameters permitted by the legislations (Foundation Companies Law, Companies Law, etc.).
Where the proposed activities of a company are to be carried out mainly outside of the Cayman Islands – offshore – the registrants can apply for registration as a Limited Liability Company (“LLC”) under the Limited Liability Companies Law. Like companies under the Companies Law, this type of company has separate legal identity therefore the members of the company cannot be held personally liable for the company’s debts or liabilities.
An overseas company (usually referred to as a foreign company) is a company incorporated outside the Cayman Islands. Registration pursuant to Part IX of the Companies Law is necessary to enable overseas companies to hold land or carry on business in the Cayman Islands, or to act as the general partner of a Cayman Islands Exempted Limited Partnership.
An ordinary resident company carries on business within the Cayman Islands. Resident companies must maintain at their registered office, open for public inspection, a register of their past and present members.
A special economic zone company is authorised to carry on business in a special economic zone pursuant to any Law in force in the Islands. The Companies Law (PART VIIIA) permits the re-registration of existing exempt companies as special economic zone companies.
In the case of an unlimited company the liability of all its shareholders or members is unlimited. Its members or shareholders have a joint, several and non-limited obligation to meet any deficiency in the assets of the company to settle outstanding debts in the event of the winding up of the company.