Year End Considerations and New Year Resolutions for Cayman Domiciled Entities
By Mark Longbottom From Duff & Phelps
How did you do with your New Years’ resolutions? Were the promises to keep the place tidy, reduce expenditure and to be slightly more efficient a little too ambitious? The year end is fast approaching and understandably you may not have kept to your resolutions, but there’s still time to realize the efficiencies and savings you envisioned with respect to your Cayman domiciled entities.
With very little time left in the year, we are here to help you fulfill those resolutions and promises made and to provide assistance with the winding up and closing of your exempted Cayman domiciled partnerships, companies or foreign entities registered in the Cayman Islands. You have two primary options to close these entities:
Voluntary Liquidation
Voluntary Liquidation
Laid down in the Companies Law, voluntary liquidation is a formal process that involves the appointment of liquidators as well as the calling for claims and holding of Final Meetings, amongst other things. This is a slightly more expensive route than strike offs, but it does have finality to it.
Strike Off
The difference between a strike off and a Voluntary Liquidation is, in essence, twofold:
The strike off process is simple compared to the voluntary liquidation process and follows an application (usually by the Company’s Directors) to the Registrar for strike off and is thus efficient from a cost and time perspective.
The process does not have the finality of a Voluntary Liquidation as the company can still be brought back to life via a court application, unlike in a Voluntary Liquidation.
If the focus of your resolutions is a CIMA regulated entity, then there will be extra nuances involved, including a changing of status and audit waivers.
In either instance, please note that we will require the receipt of the relevant paperwork and /or to be appointed prior to 9 December 2016.
CONTACT US
Mark Longbottom is a partner at Duff & Phelps.
Cayman Islands
Partner
+1 345 623 9906
