Types of Companies
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 a 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.
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 obligations to meet any deficiency in the assets of the company to settle outstanding debts in the event of the winding-up of the company.