Winding up your business in the Cayman Islands
Opting for the voluntary liquidation of your Cayman company when it has naturally reached the end of its life cycle can save on entity dissolution costs, explains Amrish Bhugoo, Senior Vice-President – Accounting, Regulatory and Compliance.
When is it time to liquidate your Cayman Islands entity?
If your Cayman company has naturally reached the end of its life cycle, making an early start to the dissolution process means you will avoid annual government, regulatory and service provider fees.
If you wish to liquidate a company, there are some timelines and deadlines that you need to consider.
What are the deadlines for liquidating an entity in the Cayman Islands?
The final general meeting (FGM) for a private company must be held before 31 January 2022 to avoid the 2022 annual fees. The dissolution process takes approximately six to eight weeks to complete and given potential delays at the Registrar of Companies with the December rush, starting the liquidation process by the end of September 2021 is advisable.
Reporting Financial Institutions (RFIs)
RFIs have regulatory requirements under FATCA and/or CRS and we are able to assist with the FATCA/CRS filings for both 2021 and 2022. Again, we recommend processing these sooner rather than later. The reporting is due to the fact that there will be filing obligations for both years if the liquidation is not completed by 31 December 2021.
Cayman Islands Monetary Authority (CIMA) registered funds
CIMA registered funds should allow additional time in order to meet their deregistration obligations. Final audits, distributions and redemptions must be completed prior to commencing liquidation to avoid an extended liquidation timeline. CIMA funds should complete the process with the FGM held prior to year-end to avoid 2022 CIMA fees. If dissolution is desired, then this process should start as soon as possible.
How can you wind up your Cayman Islands entity?
Working freely with the world’s leading legal and tax advisers, we can assist you with lifting the administrative burden associated with liquidating your corporate structure(s).
Please contact our liquidation team below to commence the liquidation process, or for guidance in navigating your Cayman company requirements.