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Cayman Islands Asset Protection: Understanding a Limited Partnership |
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In the Cayman Islands, foreign companies must register under before they can set up a company in this jurisdiction for the purposes of doing business locally. You need to furnish the registrar a copy of the duly witnessed documentation of incorporation, a list of the corporation’s directors with relevant information about them such as their name and location and the name of your local representative or agent. Of course, you will need to pay the registration fee and afterwards, an annual registration renewal fee.
If you are so inclined, you can set up a limited partnership. For this, you would need to get registered with the government agency that oversees the companies with limited partnership structures. The registration process is very similar to the institution of a foreign company, but in this case, the list of directors becomes the list of company partners.
If you prefer not to divulge information about your partners and the amount of contributions that each partner has contributed to the company, you may set up a limited partnership with exemptions. With no paper trail on your assets, you and your partners can protect your financial assets better with this type of company; confidentiality of information is assured. Aside from the advantage of not being required to name the partners, your company will also be exempted from taxes for 50 years. Of course, it wouldn’t be practical top set up this type of company if you wish to do business locally for this is definitely not allowed.
Partners are categorized into general partners and limited partners. General partners are responsible for the company’s management because they have unlimited liability unlike the limited partners which are liable only to the scope of their shares. They do not partake in the ownership of a share in a company, thus, their liability as investors is limited to the amount of money or to the assets that they have contributed. This is why most offshore individuals and companies are generally advised to enter into a limited partnership as a form of Cayman Islands asset protection method rather than entering into a general partnership.
As one of the world’s center for financial investments, the islands can offer your limited partnership a high level of security and confidentiality and tax free income.
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