Cayman Foundations Law In Force
by Mike Godfrey, Lowtax.net, Washington
20 October, 2017
Legislation to introduce foundations in the Cayman Islands became law on October 19, with the publication of The Foundation Companies Law, 2017 (Commencement) Order, 2017 in the Official Gazette on October 18.
The Cayman Government said: "It is anticipated that this new Cayman Islands business vehicle will give the financial services industry a competitive advantage through increased versatility in the international market. Similar to how a limited liability company (which is a variant of a company) is infused with functions of a partnership, a foundation company would also be a variant of a company. Foundation companies aim to introduce a special type of company that blends certain key advantages of trusts and of companies in one vehicle. They offer clients a more satisfactory structure, allowing for the ability to have no shareholders and entrenched objectives. Foundation companies can therefore be used in a wide variety of situations, including commercial and philanthropic purposes."
It noted that foundations are subject to the same transparency and anti-money laundering and countering the financing of terrorism provisions as a company.
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