Cayman Island

As detailed in the Economic Crime (Transparency and Enforcement) Act 2022 (the "Act") introduces a new register, the Register of Overseas Entities (“ROE”) to keep track of the UK property owned by overseas entities.

The register includes the details of overseas entities and registrable beneficial owners.

Consequences of Not Registering Your CAYMAN ISLAND Entity In The Companies House?

• Prison sentence up to 5 years
• Inability to buy, sell or transfer any UK properties

CAYMAN ISLAND Companies

Cayman Islands Company laws provides regulation and guidance for the formation and operation of companies within the jurisdiction.

It outlines the process for registration of companies via continuation as a limited liability corporation under the laws of other jurisdictions.

The law also places restrictions on business activities, such as prohibiting transactions with individuals, firms, or corporations unless they are in support of the company's operations within the Cayman Islands.

The most recent revision of this law, known as the Companies Act (2023 Revision), was updated in December 2022.

Under it, it requires companies to maintain a registered office in Cayman Island and complete an annual validation filing in January of each year.

Types of Companies that are required to register under the Law are:

• Resident Companies
• Non-resident Companies
• Exempted Companies
• Exempted Limited Duration Companies (LDC) or Special Economic Zone companies (SEZ)
• Limited Liability Companies (LLCs)
• Other Entities Requiring TBLA (Trade and Business Licensing Authorities)

CAYMAN ISLAND Trusts

Cayman Islands trusts are governed by English legal principles and supplemented by the Trusts Act (2021 Revision) (the Trusts Act). It is backed by relevant court rulings and cases within the jurisdiction.

The updated Trusts Law supports the position of the Cayman Islands as a prominent location for the establishment of various trust structures, both for private clients and corporations.

- Various Types of Trusts under the Act:

• Ordinary trusts,
• STAR trusts,
• Charitable or non-charitable trusts

Cayman Islands Limited Partnerships (LP)

The Limited Partnerships Law (2021 Revision) in the Cayman Islands is governed by the Exempted Limited Partnership Act (2021 Revision).

The Cayman Islands Exempted Limited Partnership Law permits the creation of an Exempted Limited Partnership (ELP) for any legitimate purpose to be executed both within the Islands and from external locations.

Cayman Islands Limited Liability Partnerships (LLP)

The Limited Liability Partnership Act (2021 Revision) governs limited liability partnerships in the Cayman Islands. It outlines the necessary registration procedures, regulations for operating and dissolving a limited liability partnership.

 The Exempted Limited Partnership Act (2021 Revision) is also relevant for limited partnerships in the Cayman Islands and was made publicly available on August 13th, 2021

Types of UK properties owned by CAYMAN ISLAND Company fall under the scope of ROE

The types of properties under the scope of ROE is slightly different based on the location of the property:

England & Wales

• Following properties purchased on or after 1 January 1999:
• Freehold properties
• Leasehold properties with term longer than 7 years

Scotland

• Following properties purchased on or after 8 December 2014:
• Registered plot of land
• Tenancy on a registered lease

Northern Ireland

• Following properties purchased on or after 1 August 2022:
• Freehold properties
• Leasehold properties with the term longer than 21 years

At UK Property Accountants, we have specialist ROE team who have dealt with a lot of CAYMAN ISLAND entities and can get your overseas entities registered at speed. 

If you are living in Cayman Island and involved in the UK Property and real estate, UK Property Accountants will provide expert UK tax and accounting solutions tailored to the residents of Cayman Island. The property taxes applicable in the UK is quite complex and can be very difficult to understand for Cayman Island based businesses and individuals. The UK tax system is drastically different from the tax system of Cayman Island.

Following are the most common forms of ownership structure commonly used by the investors and businesses based in Cayman Island for property ownership and property development projects:

• UK limited company with residents of Cayman Island as shareholders
  
• Private Limited Liability Company (LLC) registered in Cayman Island
  
• Direct ownership by individual investors
• Other complex structures such as trusts and entities based in Cayman Island
  

Tax experts and accountants at UK Property Accountants with experience and expertise in dealing with Cayman residents will be able to advise you on the best structure and execute the chosen structure. We also understand the reliefs and tax implication of the double taxation treaty between the UK and Cayman Island (UK/Cayman Island Double Taxation Treaty) signed on 20 December 2010.